How to Calculate HHI
HHI, or Human Development Index, is a composite measure that combines life expectancy, education, and per capita income indicators to rank countries into four tiers of human development. Calculating HHI helps understand a country’s development status and progress over time.
- Enter the income and expenses values.
- Click the ‘Calculate HHI’ button.
- View the results and chart below.
The HHI formula is: HHI = (ln(Income) – ln(Expenses)) / ln(Income + Expenses). Here’s how it works:
| Country | Income | Expenses | HHI |
|---|---|---|---|
| USA | $63,000 | $40,000 | 0.75 |
| India | $2,000 | $1,500 | 0.32 |
| Sweden | $55,000 | $35,000 | 0.78 |
| Year | Global HHI |
|---|---|
| 2000 | 0.63 |
| 2010 | 0.69 |
| 2020 | 0.74 |
- HHI values range from 0 to 1, with 1 being the highest level of human development.
- HHI is a useful tool for comparing countries’ development levels.
- Regularly calculating HHI helps track progress towards the UN’s Sustainable Development Goals.
What does HHI measure?
HHI measures a country’s level of human development based on life expectancy, education, and per capita income.
Why is HHI important?
HHI helps compare countries’ development levels, track progress, and inform policy decisions.
For more information, see: