Agricultural Economics and Development

Agricultural Economics and Development

Measuring the Loss of Inequality and its Effect on the Human Development Index

Document Type : Original Article

Authors
Agricultural Economics Department. Agricultural Economic and Development Collegue, University of Tehran. Karaj, Iran
10.30490/aead.2026.367647.1737
Abstract
The Human Development Index (HDI) was first designed in 1990 to assess the level of development of countries within the framework of the United Nations Development Program. This index is based on the fundamental idea that the progress of human societies cannot be measured solely by per capita income, but rather that achieving a better life requires, in addition to having a higher income, the development of human talent and capacities. Following that, a set of indices, including the adjusted Human Development Index with inequality, were developed to analyze different dimensions of human development. In the present study, considering the high importance of the Human Development Index and the adjusted Human Development Index based on inequality, these two indices were examined for Iran during the years 2010-2022. Ultimately, the country's status in terms of utilizing the mentioned indices in these years was compared with the member countries of MENAT, and the potential human development loss due to inequality was calculated for the country. The results showed that during the study period, on average, 9.34% of the life expectancy component, 37.2% of the education component, and 27.2% of the income component were lost from Iran's Human Development Index. Overall, a 25% triple-component loss due to inequality occurred in the country's Human Development Index, indicating Iran's unfavorable position in this index. A comparison with selected MENAT member countries showed that among the 13 countries examined in terms of the inequality-induced loss in the Human Development Index, Iran ranked in an unfavorable eleventh position.
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Articles in Press, Accepted Manuscript
Available Online from 28 October 2026