Methodology of HDI America

MethodologicalNoteContentsTheAmericanHumanDevelopmentIndex

CalculatingtheAmericanHDIndex

GoalpostsforCalculatingtheAmericanHDIndex

HealthIndex

EducationIndex

IncomeIndex

DataSources

MetroAreasUsedinTheMeasureofAmerica20132014

RacialandEthnicGroupsUsedTheMeasureofAmerica20132014

CautionsonComparability

Notes

Bibliography

TheAmericanHumanDevelopmentIndexThefollowingarenotesondataandmethodologytoaccompanyTheMeasureofAmerica20132014,launchedJune19,2013.TheAmericanHumanDevelopment(HD)Indexmeasuresthedistributionofwellbeingandopportunityinthreebasicdimensions:health,accesstoknowledge,andlivingstandards.AlldatausedtocalculatetheAmericanHDIndexcomefromofficialU.S.governmentsources.IntheIndex:Alongandhealthylifeismeasuredusinglifeexpectancyatbirth.ThisindicatoriscalculatedbyMeasureofAmericausingabridgedlifetablesbasedontheChiangmethodology.1ThemortalitydatacomefromtheCentersforDiseaseControlandPrevention,NationalCenterforHealthStatisticsandthepopulationestimatescomefromtheU.S.CensusBureauPopulationEstimatesProgram.

TheMeasureofAmerica20132014www.measureofamerica.org

2

Accesstoknowledgeismeasuredusingtwoindicators:netschoolenrollmentforthepopulationage3to24anddegreeattainmentforthepopulation25yearsandolder(basedontheproportionoftheadultpopulationthathasearnedahighschooldiploma,abachelorsdegree,andagraduateorprofessionaldegree).BothindicatorsarefromtheAmericanCommunitySurvey(ACS)oftheU.S.CensusBureau.Adecentstandardoflivingismeasuredusingthemedianpersonalearningsofallworkerswithearningsages16andolderfromtheACS.CalculatingtheAmericanHDIndexBeforetheHDIndexiscalculated,asubindexneedstobecreatedforeachofthesethreedimensions.Tocalculatetheseindices,minimumandmaximumvalues(goalposts)arechosenforeachunderlyingindicator.Thegoalpostsaredeterminedbasedontherangeoftheindicatorobservedonallpossiblegroupingsandalsotakingintoaccountpossibleincreasesanddecreasesinyearstocome.Thesearethenadjustedinordertoachieveabalanceinthefinalindex.AllthreedimensionsoftheAmericanHDIndexareweightedequally.Performanceineachdimensionisexpressedasavaluebetween0and10byapplyingthefollowinggeneralformula:DimensionIndex=actualvalueminimumvalue

maximumvalueminimumvalue

GoalpostsforCalculatingtheAmericanHDIndexThegoalpostsforthefourprincipleindicatorsthatmakeuptheAmericanHumanDevelopmentIndexareshowninthetablebelow.InordertomaketheHDIndexcomparableovertime,thehealthandeducationindicatorgoalpostsdonotchangefromyeartoyear.Theearningsgoalpostsareadjustedforinflation(pleaseseethebelowformoredetails).Becauseearningsdataandthegoalpostsarepresentedindollarsofthesameyear,thesegoalpostsreflectaconstantamountofpurchasingpowerregardlessoftheyear,makingincomeindexresultscomparableovertime.VALUE

MMMAXIMUMVALUE

MINIMUMVALUE

Lifeexpectancyatbirth(years) 9090years 66yearsEducationalattainmentscore 2.0 0.5Combinednetenrollmentratio(%) 95% 60%Medianpersonalearnings(2010dollars)* $61,427 $14,519*Earningsgoalpostswereoriginallysetat$55,000and$13,000in2005dollars.

x10


3

TheAmericanHDIndexiscalculatedbytakingthesimpleaverageofthehealth,education,andincomeindices.Sinceallthreecomponentsrangefrom0to10,theHDIndexitselfalsovariesfrom0to10,with10representingthehighestlevelofhumandevelopment.TheexampleatrightshowshowtheHDIndexvaluefortheUnitedStatesiscalculated.______________________________________________________________________________EXAMPLE:CalculatingtheHDIndexfortheUnitedStates

HEALTHIndexLifeexpectancyatbirthfortheUnitedStatesin2009was78.86,roundedto78.9years.TheHealthIndexisgivenby:HealthIndex=78.8666

9066

EDUCATIONIndexIn2010,85.6percentofU.S.adults25yearsandolderhadatleastahighschooldiploma,28.2percenthadatleastabachelorsdegree,and10.4percenthadagraduateorprofessionaldegree.ThereforetheEducationalAttainmentScoreis0.856+0.282+0.104=1.242.TheEducationalAttainmentIndexisthen:EducationalAttainmentIndex=1.240.5

2.00.5Schoolenrollment(netgrossenrollmentratio)was77.55,roundedto77.6percent.SotheEnrollmentIndexis:EnrollmentIndex=77.55609560TheEducationalAttainmentIndexandtheEnrollmentIndexarethencombinedtoobtaintheEducationIndex.TheEducationIndexgivesa2/3weighttotheEducationalAttainmentIndexanda1/3weighttotheEnrollmentIndextoreflecttherelativeeaseofenrollingstudentsinschoolascomparedwiththerelativedifficultyofcompletingameaningfulcourseofeducation(signifiedbytheattainmentofdegrees):EducationIndex=2/3(4.95)+1/3(5.01)=4.97INCOMEIndexMedianpersonalearningsin2010were$28,899. TheIncomeIndexisthen:IncomeIndex=log(28,899)log(14,519.01)

log(61,426.57)log(14,519.01)

x10=5.36

x10=4.95

x10=5.01

x10=4.77


4

HUMANDEVELOPMENTIndexOncetheseindiceshavebeencalculated,theHDIndexisobtainedbytakingtheaverageofthethreeindices:HDIndex=5.36+4.97+4.77

_____________________________________________________________________________

HealthIndexTheHealthIndexmeasuresrelativeachievementinlifeexpectancyatbirth.Lifeexpectancyatbirthiscalculatedusingdatafromtwoprincipalsources.MortalitydatawereobtainedbyarrangementwiththeNationalCenterforHealthStatistics(NCHS)attheCentersforDiseaseControlandPrevention,andtheNationalAssociationforPublicHealthStatisticsandInformationSystemsVitalStatisticsCooperativeProgram.BridgedracepopulationestimateswereobtainedfromtheCDCWONDERDatabase.LifeexpectancyiscalculatedbasedonawidelyusedmethoddevelopedbyC.L.Chiang.Thismethodinvolvestheconstructionofabridgedlifetablesthatusepopulationandmortalitycountsbyagegroupasinputs.TheHealthIndexisobtainedbyscalingthelifeexpectancyatbirthvaluesusingthemaximumandminimumgoalpostsandiscalculatedasfollows:HealthIndexi=LEiLEMIN

LEMAXLEMINwhereLEiisthelifeexpectancyatbirthforunitiandLEMINandLEMAXarethegoalposts.

EducationIndexTheEducationIndexisbasedontwosubindices:anEducationalAttainmentIndexandanEnrollmentIndex.TheEducationalAttainmentIndexmeasurestheoveralllevelofeducationalattainmentachievedbytheadultpopulation.Ittakesintoaccountthepercentageofthepopulationage25yearsandolderwhohaveearnedatleastahighschooldiplomaorequivalent,atleastabachelorsdegree,oranadvanceddegree(masters,professional,doctoral,etc.).Eachcategoryrepresentsthepercentageoftheadultpopulationwhohaveachievedatleastthatlevelofattainment,meaningthatthepercentageofthepopulation25

x10

=5.03


5

andoverwithamastersdegreenecessarilyincludesthosewithabachelorsdegreeandahighschooldiplomaoritsequivalent.TocalculatetheEducationalAttainmentIndex,firstanAttainmentSumisdeterminedbyaddingthepercentageofthepopulation25andolderwithatleastahighschooldiplomaorequivalent,thepercentagewithatleastabachelorsdegree,andthepercentagewithanadvanceddegree.Thosewhohaveearnedanassociatedegreeorthosewhohavecompletedsomecollegewithoutearningadegreearecountedintheatleasthighschoolcategory.TheEducationalAttainmentIndexiscalculatedasfollows:EducationalAttainmentIndexi= EASiEASMINx10

EASMAXEASMINwhereEASiistheEducationalAttainmentScoreforunitiandEASMINandEASMAXarethegoalposts.TheEnrollmentIndexisbasedonanetenrollmentcalculationthattakesintoaccountthetotalnumberofstudentsenrolledinschool(ofanyageatanylevel)dividedbythetotalschoolagedpopulationof3to24yearolds(inclusive).Therefore,NetEnrollmentRatioi=ENRi

P3TO24iwhereENRiisthepopulationages3to24enrolledinschoolatanylevelandP3TO24iisthepopulationbetweentheagesof3and24.TheEnrollmentIndexisthencalculated:EnrollmentIndexi=NERiNERMINx10

NERMAXNERMINwhereNERiistheEducationalAttainmentScoreforunitiandNERMINandNERMAXarethegoalposts.Finally,thesetwocomponentsarecombinedintotheEducationIndex.Inordertoreflecttherelativeeaseofenrollingstudentsinschoolcomparedtothecompletionofameaningfulcourseofeducation(signifiedbytheattainmentofdegrees),atwothirdsweightisappliedtotheAttainmentIndexandaonethirdweighttotheEnrollmentIndextocalculatethefinalEducationIndexasfollows:EducationIndexi=2/3EAIi+1/3EIiwhereEAIiisEducationalAttainmentIndex,andEIiisEnrollmentIndex.

IncomeIndex


6

TheIncomeIndexiscalculatedasfollows:IncomeIndexi=log(yi)log(yMIN)log(yMAX)log(yMIN)whereyiistheMedianEarningsforunitiandyMINandyMAXarethegoalposts.Medianpersonalearningsreflectthemedianofthesumofwages,salaries,andnetincomefromselfemploymentbeforedeductionsfortaxes,andsocialcontributionsforthepopulationage16andolderwithearnings.Inflationadjustments.Comparingearningsfromdifferentyearsrequiresanadjustmenttoaccountforthedepreciationofthepurchasingpowerofanydollaramountduetoinflation.TheConsumerPriceIndex(CPI)ascalculatedbytheBureauofLaborStatistics(BLS)wasusedtoconvertdollarsofdifferentyearsto2010dollarsforthepurposesofthisreport.FollowingtherecommendationoftheU.S.CensusBureau,2theCPIresearchseriesusingcurrentmethods(CPIURS)wasusedtoconstructadjustmentfactorsforconvertingdollarsofoneyeartoanother.DataSourcesCalculatingtheAmericanHDIndexfortheUnitedStatesacrossthedecadessince1960,andforU.S.statesfrom2000to2010,requiredtheutilizationofmorethanonesourceofdataforeachindicator.ThefollowingtablessummarizethesourcesofdatausedintheHDIndex,byindicatorandyear.LifeExpectancyatBirthYear Sources2010 MortalitydatafromtheCDC,NationalCenterforHealthStatisticsascompiledfromdata

providedbythe57vitalstatisticsjurisdictionsthroughtheVitalStatisticsCooperativeProgramandJuly1stintercensalpopulationestimatesaccessedthroughtheCDCWONDEROnLinedatabase.

2008 Sourcesasabove.2005 Sourcesasabove.2000 Sourcesasabove.1990 CDC.Health,UnitedStates,2007,Hyattsville,MD:2007,Table27.Lifeexpectancyatbirth,at

65yearsofage,andat75yearsofage,byraceandsex:UnitedStates,selectedyears19002004

1980 Sourceasabove.1970 Sourceasabove.1960 Sourceasabove.NOTES Lifeexpectancyatbirthestimatesfor2010,2008,2005,and2000areMeasureofAmerica

calculations.EstimatesforallotheryearsaretakenfromtheCDC,Health,UnitedStates,2007publication,asnotedabove.MeasureofAmerica2010estimatesuse2009dataand2008estimatesuse2007data.

EducationalAttainmentYear Sources2010 U.S.CensusBureau,ACS.2008 U.S.CensusBureau,ACS.

X10


7

2005 U.S.CensusBureau,ACS.2000 U.S.CensusBureau,Census2000.1990 1990U.S.CensusBureau,CensusofPopulation,EducationintheUnitedStates(CP34),

Table1.1980 1980CensusCharacteristicsofthePopulation,ChapterC,GeneralSocialandEconomic

Characteristics,Table83.1970 Asabove.1960 Asabove.NOTES Priorto1990,theU.S.CensusBureaumeasurededucationalattainmentasthenumberof

yearsofschoolingcompleted,notbyhighestdegreecompleted.Thosewhocompletedfiveormoreyearsofcollegearecountedashavinggraduateorprofessionaldegrees.

EducationalEnrollmentYear Sources2010 U.S.CensusBureau,ACS.2008 U.S.CensusBureau,ACS.2005 U.S.CensusBureau,ACS.2000 U.S.CensusBureau,Census2000.1990 U.S.CensusBureau,CurrentPopulationSurvey(CPS),October1990,Table1.1980 U.S.CensusBureau,CPS,October1980,Table6.1970 U.S.CensusBureau,CPS,October1970,Table1.1960 U.S.CensusBureau,CPS,October1960,Table3.NOTES Estimatesofnetenrollmentreflectenrollmentamong3to24yearoldsforallyearsexcept

1960wheretheagerangewas5to24.MedianPersonalEarningsYear Sources2010 U.S.CensusBureau,ACS.2008 U.S.CensusBureau,ACS.2005 U.S.CensusBureau,ACS.2000 U.S.CensusBureau,Census2000.1990 U.S.CensusBureau,CPS,CensusHistoricalIncomeTableP43.1980 Asabove.1970 U.S.CensusBureau,CPS,CensusHistoricalIncomeTableP04.1960 Asabove.NOTES EstimatesofmedianpersonalearningsfromtheACSreflectearningsinthetwelvemonths

priortoansweringthesurvey.Thisincludesallworkerswithearningsages16andolder.EstimatesofmedianpersonalearningsfromthedecennialCensusreflectearningsinthepreviouscalendaryear.Thisincludesallcivilianworkerswithearningsages15andolderfor1980,1990,and2000.For1960and1970,thisincludesworkerswithincomeages14andolderandincomeissubstitutedforearnings.FiguresfromtheCPSwereadjustedwiththeratioofACSandCPSestimatesofmedianpersonalearningsfor2010.Allfiguresareinconstant2010dollars.TheCPIresearchseriesusingcurrentmethods(CPIURS)wasusedtoconstructadjustmentfactorsforconvertingdollarsofoneyeartoanother.

MetroAreasUsedinTheMeasureofAmerica20132014


8

ThemetroareasusedinthisreportareformallycalledMetropolitanStatisticalAreas(MSAs),geographicareasandaredefinedbytheWhiteHouseOfficeofManagementandBudgetandusedbytheU.S.CensusBureauandothergovernmententities.3MSAsincludeanurbancenterandoutlyingcountiesfromwhichasubstantialpercentageofthepopulationcommutestotheurbancenterforwork.MSAsusedinthisreportwerethetwentyfivelargestmetroareasinthenationatthetimeofthe2010Census.MSAnameshavebeenshortenedfromtheirofficialversionsforsimplicity.Pleaseseepage56ofTheMeasureofAmerica20132014fortheofficialnameandCensus2010populationofeachmetroarea. RacialandEthnicGroupsUsedinTheMeasureofAmerica20132014TheracialandethnicgroupsusedinthisreportarebasedondefinitionsestablishedbytheWhiteHouseOfficeofManagementandBudget(OMB)andusedbytheCensusBureauandothergovernmententities.4Since1997theOMBhasrecognizedfiveracialgroupsandtwoethniccategories.TheracialgroupsincludeNativeAmericans,AsianAmericans,AfricanAmericans,NativeHawaiiansandOtherPacificIslanders,andwhites.TheethniccategoriesareLatinoandnotLatino.PeopleofLatinoethnicitymaybeofanyrace.Inthisreport,membersofeachoftheseracialgroupsincludeonlynonLatinomembersofthesegroups.Whenthetotalpopulationofanygroupinanyareawaslessthan50,000people,theAmericanHDIndexwasnotcalculatedforthatgroupduetothestatisticalinstabilityofsurveybasedestimatesforsmallpopulations.CautionsonComparabilityThisbriefdiffersfrompriorMeasureofAmericapublicationsinthatisusesthenetenrollmentratioofthepopulationages3to24intheEducationIndexcomponentoftheIndex,replacingthepreviouslyusedgrossenrollmentrateforallstudentsages3andabove.Previouslypublishedestimatesoflifeexpectancyatbirthhavealsobeenrevisedusingrecentlyreleasedintercensalestimatesoftheresidentpopulationmadeavailableinthe2010Census.Asaresultofthesechangesandrevisions,AmericanHumanDevelopmentIndexvaluespresentedinthisbriefarenotcomparablewithpreviouslypublishedvaluesfromTheMeasureofAmerica:AmericanHumanDevelopmentReport20082009,TheMeasureofAmerica20102011:MappingRisksandResilienceorMeasureofAmericasstateandcountylevelreports.NotethatHDIndexvaluespresentedinthisreportforallyearsandlevelsofgeographyhavebeencalculatedusingtheupdatedmethodologyandarefullycomparablewitheachother.AlldatausedtocalculatetheAmericanHumanDevelopmentIndex,withtheexceptionoflifeexpectancyatbirth,comefromtheAmericanCommunitySurvey(ACS),anannualsurveyconductedbytheU.S.CensusBureau.AstheACSsurveysasubsetoftheoverallpopulation,estimatesofpopulationcharacteristicscalculatedfromACSdataaresubjecttosomedegreeofsamplingandnonsamplingerror.Comparisonsbetweensimilarvaluesonanyindicator,


9

especiallyforsmallpopulations,shouldbemadewithcautionsincethesedifferencesmaynotalwaysbestatisticallysignificant.BibliographyCentersforDiseaseControlandPrevention.NationalCenterforHealthStatistics.BridgedRacePopulationEstimates,UnitedStates.July1stResidentPopulationbyState,Age,Sex,BridgedRace,andHispanicOrigin,onCDCWONDEROnlineDatabase.http://wonder.cdc.gov..NationalCenterforHealthStatistics.Health,UnitedStates,2007,Hyattsville,MD:2007.http://www.cdc.gov/nchs/data/hus/hus07.pdf..CentersforDiseaseControlandPrevention,NationalCenterforHealthStatistics.MortalityAllCountyMicroDataFile(2000),downloadedfromtheNationalBureauofEconomicResearch,MortalityDataVitalStatisticsNCHSsMultipleCauseofDeathData,19592010.http://www.nber.org/data/vitalstatisticsmortalitydatamultiplecauseofdeath.html..CentersforDiseaseControlandPrevention,NationalCenterforHealthStatistics.MortalityAllCountyMicroDataFile(20052009),ascompiledfromdataprovidedbythe57vitalstatisticsjurisdictionsthroughtheVitalStatisticsCooperativeProgram.Chiang,C.L.TheLifeTableandItsApplications.Malabar,FL:Krieger,1984.Ruggles,Stephen,J.TrentAlexander,KatieGenadek,RonaldGoeken,MatthewB.Schroeder,andMatthewSobek.IntegratedPublicUseMicrodataSeries:Version5.0[MachinereadabledatabaseoftheCensus20005%microdatasample].Minneapolis:UniversityofMinnesota,2013.Toson,Barbara,andAlanBaker.LifeExpectancyatBirth:MethodologicalOptionsforSmallPopulations.NationalStatisticsMethodologicalSeriesNo.33.London:OfficeforNationalStatistics,2003.http://www.ons.gov.uk/ons/guidemethod/methodquality/specific/gssmethodologyseries/gssmethodologyseries33lifeexpectancyatbirthmethodologicaloptionsforsmallpopulations.pdf.U.S.CensusBureau,1980CensusCharacteristicsofthePopulation,ChapterC,GeneralSocialandEconomicCharacteristics,Table83,http://www2.census.gov/prod2/decennial/documents/1980a_usC01.pdf.U.S.CensusBureau,1990CensusofPopulation,EducationintheUnitedStates(CP34),Table1,http://www.census.gov/prod/cen1990/cp3/cp34.pdf.U.S.CensusBureau,ACompassforUnderstandingandUsingAmericanCommunitySurveyData:WhatGeneralDataUsersNeedtoKnow.U.S.GovernmentPrintingOffice,Washington,DC,2008.http://www.census.gov/acs/www/Downloads/handbooks/ACSGeneralHandbook.pdf..AmericanCommunitySurvey2011.Oneandthreeyearestimates.http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml..AmericanCommunitySurvey2010.OneandthreeyearestimatesandPublicUseMicrodataSample.http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml.


10

.AmericanCommunitySurvey2008.OneyearestimatesandPublicUseMicrodataSample.http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml..AmericanCommunitySurvey2005.OneyearestimatesandPublicUseMicrodataSample.http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml..Census2010.SummaryFile1.http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml..Census2000.SummaryFiles1and3.http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml..CurrentPopulationSurvey,HistoricalTablesP04andP43.http://www.census.gov/hhes/www/income/data/historical/people/WhiteHouseOfficeofManagementandBudget.StatisticalPolicyDirectiveNo.15,RaceandEthnicStandardsforFederalStatisticsandAdministrativeReporting.FederalRegisterNotice,October30,1997.http://www.whitehouse.gov/omb/rewrite/fedreg/ombdir15.html..UpdateofStatisticalAreaDefinitionsandGuidanceonTheirUses.OMBBulletinNo.1002.December1,2009.http://www.whitehouse.gov/omb/assets/bulletins/b1002.pdf.1SeeChiang;TosonandBakerformoreinformation.2OfficeofManagementandBudget,UpdateofStatisticalAreaDefinitionsandGuidanceonTheirUses.3OfficeofManagementandBudget,StatisticalPolicyDirectiveNo.15.4U.S.CensusBureau,ACompassforUnderstandingandUsingAmericanCommunitySurveyData:WhatGeneralDataUsersNeedtoKnow.

Documents

Methodology of HDI America