Chapter 6 Flashcards
(26 cards)
HDI
Composite measure of human development in a country between minimum and maximum levels of (log) GDP/person, life expectancy and literacy/schooling.
Each component measured on a scale of 0 to 1
Broader measure of wellbeing than GDP and weights improvements in mortality heavily -> focuses on lives that people lead, not just average income of country
OECD: 0.2 (1860) -> 0.8 (2010)
GNI
Measures inequality through looking at in relation to the line of equality. Higher value = more unequal society.
Engle coefficient
Captures of the proportion of money spent on food compared to other goods.
Convergence of life expectancy
- Most of the things that increase life expectancy cost nothing, or very little (E.g. Understanding about cleanliness or sewage)
- Knowledge of the germ theory and the role of hygiene is now universal
- But new things (heart surgery) are expensive –
- hence the blip up
- In health terms, the poorest person today is richer than the richest person in history
- Japan (45 years in 1900 and 85 years in 2013)
- Not much improvement in SSA
Child labour in England
Industrial revolution: children aged 4 working in factories and mines (A)
1819: No child under 9 in mills because there was an abundance
1819: Children in mills: max 12 hour day
1847: Women and children: max 58 hour week
1874: No child under 10 in factories
1871: No child under 11
1901: No child under 12
GINI Curve
Curve from equality
In 17th to 19th century, top 5% of income earners took 40% of income
In 20th century, this trend goes downwards but is increasing but does not reach initial levels of inequality
Gender equality
Positive correlation between gender equality indicators and GDP
Violence
Not counted in GDP
Homicide rates decreased in UK, Netherlands, Belgium, Scandinavia, Germany and Italy
Spain and Italy: >5 per 100,000 (1880) to 0.5-2 per 100,000 (2000)
Lynchings fell from 160 (1891) to 0 -> African Americans discrimination -> detrimental to welfare/living standards.
Subjective well-being
GDP per capit and hapiness seems to have a positive correlation until a certain point. However, once you reach 40,000, no extra happiness can be added with an increase in income.
Japan had substanisal growth but mean satisfcation remained the same
Rise of job security
1963: US Equal Pay Act - Can’t decide to hire someone due to religion, height, sex, race and now includes sexuality.
1964: US Civil Rights Act prevents job discrimination based on race, sex, colour, national origin and religion – including indirect discrimination, e.g. height.
Now includes sexuality and transgender identity
UK, EU etc follow
Infant deaths
UK
19th century: 150 deaths per 1000 births
1950: 20-30 deaths per 1000 births
Hours worked
France, Spain and the UK
- 1900: 55-60 hours per week
- 1940: 35-40 hours per week
Working hours shows the work life balance and could show happiness or it could be reflective of the working practices. Unethical practices can help draw a picture of the economy through their practices. People who work less hours and substitute it for labour tend to earn more therefore this could show the earning potential of the economy. How much time of peoples lives they have to dedicate to afford the basic living? Could long hours show exploitation (Serious residual movements as a result of)
World Literacy rates
1800: 13%
2014: 85%
Primary school enrolment
US reached 100% by 1880 (leader in primary education)
UK reached 100% by 1910
Spain reached 100% by 1970
China reached 100% by 1990.
Africa lagging behind in terms of education -> Niger only at 60% (but increasing)
Mean years of schooling
US: 4 (1870) -> 13 years (2010)
UK: 1 (1870) -> 12 years (2010)
Spain: 2 (1870) -> 11 years (2010)
China: 7 years (2010) -> increasing
Niger: 2 years -> lagging behind.
Growth
- Increase in the amount of goods and services produced in an econmy
- Indicators: GDP, GNI, per capita incomes
- Real national income/output
- Increases in components of GDP = (C+G+I(X-M))
- Quantitative changes in the economy
Development
- Improvement in the quality of life and living standards, e.g. through measurements of literacy, lifeexpectancy, healthcare as well as incomes (HDI)
- Development = growth + living standards
- Quantitative and qualitative changes in the economy
Development as freedom
- Not just economic growth
- Social and economic arrangments
- Political and civil rights
- Mutually reinforcing connections
- Harmful to culture
- Positive freedom by which humans are granted access to good and services
Removal of:
- Systematic social deprivation: lack of public facilities, poor economic opportunities, poverty/famine
- Intergroup contrasts: African Americans are relativelypoor compared to their white American counterparts, but are still much richer than those in the ‘third world’ —> yet they have absolutely lower life expectancies
- Rejection of freedom to participate in labour markets: bound labour, slavery
- Rejection of access to product markets
- Social exclusion
Freedom and growth
- Having freedom to do the things one values: significant for a person’s over all freedoms and in fostering opportunity to have valuable outcomes
- Incentives, the principle determinant of individual initiative and social effectiveness
- Income and capability deprivations: highly correlated, causation not clear
- Low income, lack of schooling —> low literacy, poor nourishment, ill health
- Better education and health —> higher incomes
- Markets: Adam Smith- freedom of exchange/transation as basic liberties that people value
- Typically work to expand wealth and income that people already have —> arbitrary restrictions lead to a reduction of freedom
Human development
the process of enlarging people’s choices (health, knowledge, standard of living)
The social variables that need to be considered are life expectancy, infant mortality, heights and literacy
There is a positive correlation between social protection and human development –the role of the state
Enrolment rates
– age at which students are in formal education
Trends in human development
- UP to 1913: Steady and moderate progress
- 1913-1970: Acceleration
- Since 1970: Sustained deceleration gave way to expansion from 1990 onwards
- HIHD increased sixfold
HIDI
Growth of human development
Non income variables are transformed non-linearly to allow for,
Increases of the same absolute size represent greater achievement, the higher the level those absolute levels increase at
Quality improvements are associated to increases in quantity
Why is 1870 a good starting point?
Large scale improvements in health
