The choice of principal variables for computing some measures of human well-being

In this paper, we investigate the choice of principal variables for computing three human development indicators, namely, the Human Development Index (HDI), the Gender-Related Development Index (GDI), and the Gender Empowerment Measure (GEM). To this end, data from the 1999 Human Development Report are used. Empirical results provide justification for selecting only one component of each indicator. The paper also suggests an alternative weighting scheme should all the three components of each indicator be retained. The implications of these results for development policy are discussed.