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Methodological Note Contents The American Human Development Index Calculating the American HD Index Goalposts for Calculating the American HD Index Health Index Education Index Income Index Data Sources Metro Areas Used in The Measure of America 2013-2014 Racial and Ethnic Groups Used The Measure of America 2013-2014 Cautions on Comparability Notes Bibliography The American Human Development Index The following are notes on data and methodology to accompany The Measure of America 2013-2014, launched June 19, 2013. The American Human Development (HD) Index measures the distribution of wellbeing and opportunity in three basic dimensions: health, access to knowledge, and living standards. All data used to calculate the American HD Index come from official U.S. government sources. In the Index: A long and healthy life is measured using life expectancy at birth. This indicator is calculated by Measure of America using abridged life tables based on the Chiang methodology.1 The mortality data come from the Centers for Disease Control and Prevention, National Center for Health Statistics and the population estimates come from the U.S. Census Bureau Population Estimates Program. Access to knowledge is measured using two indicators: net school enrollment for the population age 3 to 24 and degree attainment for the population 25 years and older (based on the proportion of the adult population that has earned a high school diploma, a bachelor's degree, and a graduate or professional degree). Both indicators are from the American Community Survey (ACS) of the U.S. Census Bureau. A decent standard of living is measured using the median personal earnings of all workers with earnings ages 16 and older from the ACS. Calculating the American HD Index Before the HD Index is calculated, a subindex needs to be created for each of these three dimensions. To calculate these indices, minimum and maximum values (goalposts) are chosen for each underlying indicator. The goalposts are determined based on the range of the indicator observed on all possible groupings and also taking into account possible increases and decreases in years to come. These are then adjusted in order to achieve a balance in the final index. All three dimensions of the American HD Index are weighted equally. Performance in each dimension is expressed as a value between 0 and 10 by applying the following general formula: Dimension Index = actual value - minimum value x 10 maximum value - minimum value Goalposts for Calculating the American HD Index The goalposts for the four principle indicators that make up the American Human Development Index are shown in the table below. In order to make the HD Index comparable over time, the health and education indicator goalposts do not change from year to year. The earnings goalposts are adjusted for inflation (please see the below for more details). Because earnings data and the goalposts are presented in dollars of the same year, these goalposts reflect a constant amount of purchasing power regardless of the year, making income index results comparable over time. VALUE MM MAXIMUM VALUE Life expectancy at birth (years) Educational attainment score Combined net enrollment ratio (%) Median personal earnings (2010 dollars)* 9090 years 2.0 95% $61,427 MINIMUM VALUE 66 years 0.5 60% $14,519 * Earnings goalposts were originally set at $55,000 and $13,000 in 2005 dollars. The Measure of America 2013-2014 www.measureofamerica.org 2 The American HD Index is calculated by taking the simple average of the health, education, and income indices. Since all three components range from 0 to 10, the HD Index itself also varies from 0 to 10, with 10 representing the highest level of human development. The example at right shows how the HD Index value for the United States is calculated. ______________________________________________________________________________ EXAMPLE: Calculating the HD Index for the United States HEALTH Index Life expectancy at birth for the United States in 2009 was 78.86, rounded to 78.9 years. The Health Index is given by: Health Index = 78.86 - 66 x 10 = 5.36 90 - 66 EDUCATION Index In 2010, 85.6 percent of U.S. adults 25 years and older had at least a high school diploma, 28.2 percent had at least a bachelor's degree, and 10.4 percent had a graduate or professional degree. Therefore the Educational Attainment Score is 0.856 + 0.282 + 0.104 = 1.242. The Educational Attainment Index is then: Educational Attainment Index = 1.24 - 0.5 x 10 = 4.95 2.0 - 0.5 School enrollment (net gross enrollment ratio) was 77.55, rounded to 77.6 percent. So the Enrollment Index is: Enrollment Index = 77.55 - 60 x 10 = 5.01 95 - 60 The Educational Attainment Index and the Enrollment Index are then combined to obtain the Education Index. The Education Index gives a 2/3 weight to the Educational Attainment Index and a 1/3 weight to the Enrollment Index to reflect the relative ease of enrolling students in school as compared with the relative difficulty of completing a meaningful course of education (signified by the attainment of degrees): Education Index = 2/3 (4.95) + 1/3 (5.01) = 4.97 INCOME Index Median personal earnings in 2010 were $28,899. The Income Index is then: Income Index = log(28,899) - log(14,519.01) x 10 = 4.77 log(61,426.57) - log(14,519.01) The Measure of America 2013-2014 www.measureofamerica.org 3 HUMAN DEVELOPMENT Index Once these indices have been calculated, the HD Index is obtained by taking the average of the three indices: HD Index = 5.36 + 4.97 + 4.77 = 5.03 _____________________________________________________________________________ Health Index The Health Index measures relative achievement in life expectancy at birth. Life expectancy at birth is calculated using data from two principal sources. Mortality data were obtained by arrangement with the National Center for Health Statistics (NCHS) at the Centers for Disease Control and Prevention, and the National Association for Public Health Statistics and Information Systems Vital Statistics Cooperative Program. Bridgedrace population estimates were obtained from the CDC WONDER Database. Life expectancy is calculated based on a widely used method developed by C. L. Chiang. This method involves the construction of abridged life tables that use population and mortality counts by age group as inputs. The Health Index is obtained by scaling the life expectancy at birth values using the maximum and minimum goalposts and is calculated as follows: Health Indexi = LEi - LEMIN x 10 LEMAX - LEMIN where LEi is the life expectancy at birth for unit i and LEMIN and LEMAX are the goalposts. Education Index The Education Index is based on two subindices: an Educational Attainment Index and an Enrollment Index. The Educational Attainment Index measures the overall level of educational attainment achieved by the adult population. It takes into account the percentage of the population age 25 years and older who have earned at least a high school diploma or equivalent, at least a bachelor's degree, or an advanced degree (master's, professional, doctoral, etc.). Each category represents the percentage of the adult population who have achieved at least that level of attainment, meaning that the percentage of the population 25 The Measure of America 2013-2014 www.measureofamerica.org 4 and over with a master's degree necessarily includes those with a bachelor's degree and a high school diploma or its equivalent. To calculate the Educational Attainment Index, first an Attainment Sum is determined by adding the percentage of the population 25 and older with at least a high school diploma or equivalent, the percentage with at least a bachelor's degree, and the percentage with an advanced degree. Those who have earned an associate degree or those who have completed some college without earning a degree are counted in the \"at least high school\" category. The Educational Attainment Index is calculated as follows: Educational Attainment Indexi = EASi - EASMIN x 10 EASMAX - EASMIN where EASi is the Educational Attainment Score for unit i and EASMIN and EASMAX are the goalposts. The Enrollment Index is based on a net enrollment calculation that takes into account the total number of students enrolled in school (of any age at any level) divided by the total schoolaged population of 3 to 24yearolds (inclusive). Therefore, Net Enrollment Ratioi = ENRi P3TO24i where ENRi is the population ages 3 to 24 enrolled in school at any level and P3TO24i is the population between the ages of 3 and 24. The Enrollment Index is then calculated: Enrollment Indexi = NERi - NERMIN x 10 NERMAX - NERMIN where NERi is the Educational Attainment Score for unit i and NERMIN and NERMAX are the goalposts. Finally, these two components are combined into the Education Index. In order to reflect the relative ease of enrolling students in school compared to the completion of a meaningful course of education (signified by the attainment of degrees), a twothirds weight is applied to the Attainment Index and a onethird weight to the Enrollment Index to calculate the final Education Index as follows: Education Indexi = 2/3 EAIi + 1/3 EIi where EAIi is Educational Attainment Index, and EIi is Enrollment Index. Income Index The Measure of America 2013-2014 www.measureofamerica.org 5 The Income Index is calculated as follows: Income Indexi = log(yi) - log(yMIN) X 10 log(yMAX) - log(yMIN) where yi is the Median Earnings for unit i and yMIN and yMAX are the goalposts. Median personal earnings reflect the median of the sum of wages, salaries, and net income from selfemployment before deductions for taxes, and social contributions for the population age 16 and older with earnings. Inflation adjustments. Comparing earnings from different years requires an adjustment to account for the depreciation of the purchasing power of any dollar amount due to inflation. The Consumer Price Index (CPI) as calculated by the Bureau of Labor Statistics (BLS) was used to convert dollars of different years to 2010 dollars for the purposes of this report. Following the recommendation of the U.S. Census Bureau,2 the CPI research series using current methods (CPIURS) was used to construct adjustment factors for converting dollars of one year to another. Data Sources Calculating the American HD Index for the United States across the decades since 1960, and for U.S. states from 2000 to 2010, required the utilization of more than one source of data for each indicator. The following tables summarize the sources of data used in the HD Index, by indicator and year. Life Expectancy at Birth Year Sources 2010 Mortality data from the CDC, National Center for Health Statistics as compiled from data provided by the 57 vital statistics jurisdictions through the Vital Statistics Cooperative Program and July 1st intercensal population estimates accessed through the CDC WONDER OnLine database. 2008 Sources as above. 2005 Sources as above. 2000 Sources as above. 1990 CDC. Health, United States, 2007, Hyattsville, MD: 2007, Table 27. Life expectancy at birth, at 65 years of age, and at 75 years of age, by race and sex: United States, selected years 1900- 2004 1980 Source as above. 1970 Source as above. 1960 Source as above. NOTES Life expectancy at birth estimates for 2010, 2008, 2005, and 2000 are Measure of America calculations. Estimates for all other years are taken from the CDC, Health, United States, 2007 publication, as noted above. Measure of America 2010 estimates use 2009 data and 2008 estimates use 2007 data. Educational Attainment Year Sources 2010 U.S. Census Bureau, ACS. 2008 U.S. Census Bureau, ACS. The Measure of America 2013-2014 www.measureofamerica.org 6 2005 2000 1990 1980 1970 1960 NOTES U.S. Census Bureau, ACS. U.S. Census Bureau, Census 2000. 1990 U.S. Census Bureau, Census of Population, Education in the United States (CP34), Table 1. 1980 Census Characteristics of the Population, Chapter C, General Social and Economic Characteristics, Table 83 . As above. As above. Prior to 1990, the U.S. Census Bureau measured educational attainment as the number of years of schooling completed, not by highest degree completed. Those who completed five or more years of college are counted as having graduate or professional degrees. Educational Enrollment Year Sources 2010 U.S. Census Bureau, ACS. 2008 U.S. Census Bureau, ACS. 2005 U.S. Census Bureau, ACS. 2000 U.S. Census Bureau, Census 2000. 1990 U.S. Census Bureau, Current Population Survey (CPS), October 1990, Table 1. 1980 U.S. Census Bureau, CPS, October 1980, Table 6. 1970 U.S. Census Bureau, CPS, October 1970, Table 1. 1960 U.S. Census Bureau, CPS, October 1960, Table 3. NOTES Estimates of net enrollment reflect enrollment among 3 to 24yearolds for all years except 1960 where the age range was 5 to 24. Median Personal Earnings Year Sources 2010 U.S. Census Bureau, ACS. 2008 U.S. Census Bureau, ACS. 2005 U.S. Census Bureau, ACS. 2000 U.S. Census Bureau, Census 2000. 1990 U.S. Census Bureau, CPS, Census Historical Income Table P43. 1980 As above. 1970 U.S. Census Bureau, CPS, Census Historical Income Table P04. 1960 As above. NOTES Estimates of median personal earnings from the ACS reflect earnings in the twelve months prior to answering the survey. This includes all workers with earnings ages 16 and older. Estimates of median personal earnings from the decennial Census reflect earnings in the previous calendar year. This includes all civilian workers with earnings ages 15 and older for 1980, 1990, and 2000. For 1960 and 1970, this includes workers with income ages 14 and older and income is substituted for earnings. Figures from the CPS were adjusted with the ratio of ACS and CPS estimates of median personal earnings for 2010. All figures are in constant 2010 dollars. The CPI research series using current methods (CPIURS) was used to construct adjustment factors for converting dollars of one year to another. Metro Areas Used in The Measure of America 2013-2014 The Measure of America 2013-2014 www.measureofamerica.org 7 The metro areas used in this report are formally called Metropolitan Statistical Areas (MSAs), geographic areas and are defined by the White House Office of Management and Budget and used by the U.S. Census Bureau and other government entities.3 MSAs include an urban center and outlying counties from which a substantial percentage of the population commutes to the urban center for work. MSAs used in this report were the twentyfive largest metro areas in the nation at the time of the 2010 Census. MSA names have been shortened from their official versions for simplicity. Please see page 56 of The Measure of America 2013-2014 for the official name and Census 2010 population of each metro area. Racial and Ethnic Groups Used in The Measure of America 2013-2014 The racial and ethnic groups used in this report are based on definitions established by the White House Office of Management and Budget (OMB) and used by the Census Bureau and other government entities.4 Since 1997 the OMB has recognized five racial groups and two ethnic categories. The racial groups include Native Americans, Asian Americans, African Americans, Native Hawaiians and Other Pacific Islanders, and whites. The ethnic categories are Latino and not Latino. People of Latino ethnicity may be of any race. In this report, members of each of these racial groups include only nonLatino members of these groups. When the total population of any group in any area was less than 50,000 people, the American HD Index was not calculated for that group due to the statistical instability of surveybased estimates for small populations. Cautions on Comparability This brief differs from prior Measure of America publications in that is uses the net enrollment ratio of the population ages 3 to 24 in the Education Index component of the Index, replacing the previously used gross enrollment rate for all students ages 3 and above. Previously published estimates of life expectancy at birth have also been revised using recently released intercensal estimates of the resident population made available in the 2010 Census. As a result of these changes and revisions, American Human Development Index values presented in this brief are not comparable with previously published values from The Measure of America: American Human Development Report 20082009, The Measure of America 2010 2011: Mapping Risks and Resilience or Measure of America's state and countylevel reports. Note that HD Index values presented in this report for all years and levels of geography have been calculated using the updated methodology and are fully comparable with each other. All data used to calculate the American Human Development Index, with the exception of life expectancy at birth, come from the American Community Survey (ACS), an annual survey conducted by the U.S. Census Bureau. As the ACS surveys a subset of the overall population, estimates of population characteristics calculated from ACS data are subject to some degree of sampling and nonsampling error. Comparisons between similar values on any indicator, The Measure of America 2013-2014 www.measureofamerica.org 8 especially for small populations, should be made with caution since these differences may not always be statistically significant. Bibliography Centers for Disease Control and Prevention. National Center for Health Statistics. BridgedRace Population Estimates, United States. July 1st Resident Population by State, Age, Sex, BridgedRace, and Hispanic Origin, on CDC WONDER Online Database. http://wonder.cdc.gov. ------. National Center for Health Statistics. Health, United States, 2007, Hyattsville, MD: 2007. http://www.cdc.govchs/data/hus/hus07.pdf. ------. Centers for Disease Control and Prevention, National Center for Health Statistics. Mortality - All County MicroData File (2000), downloaded from the National Bureau of Economic Research, Mortality Data - Vital Statistics NCHS's Multiple Cause of Death Data, 19592010. http://www.nber.org/data/vital statisticsmortalitydatamultiplecauseofdeath.html. ------. Centers for Disease Control and Prevention, National Center for Health Statistics. Mortality - All County MicroData File (20052009), as compiled from data provided by the 57 vital statistics jurisdictions through the Vital Statistics Cooperative Program. Chiang, C. L. The Life Table and Its Applications. Malabar, FL: Krieger, 1984. Ruggles, Stephen, J. Trent Alexander, Katie Genadek, Ronald Goeken, Matthew B. Schroeder, and Matthew Sobek. Integrated Public Use Microdata Series: Version 5.0 [Machinereadable database of the Census 2000 5% microdata sample]. Minneapolis: University of Minnesota, 2013. Toson, Barbara, and Alan Baker. \"Life Expectancy at Birth: Methodological Options for Small Populations.\"National Statistics Methodological Series No. 33. London: Office for National Statistics, 2003. http://www.ons.gov.uk/ons/guidemethod/methodquality/specific/gssmethodologyseries/gss methodologyseries33lifeexpectancyatbirthmethodologicaloptionsforsmallpopulations.pdf. U.S. Census Bureau, 1980 Census Characteristics of the Population, Chapter C, General Social and Economic Characteristics, Table 83, http://www2.census.gov/prod2/decennial/documents/1980a_usC 01.pdf. U.S. Census Bureau, 1990 Census of Population, Education in the United States (CP34), Table 1, http://www.census.gov/prod/cen1990/cp3/cp34.pdf. U.S. Census Bureau, A Compass for Understanding and Using American Community Survey Data: What General Data Users Need to Know. U.S. Government Printing Oce, Washington, DC, 2008. http://www.census.gov/acs/www/Downloads/handbooks/ACSGeneralHandbook.pdf. ------. American Community Survey 2011. One- and three- year estimates. http://factfinder2.census.gov/facesav/jsf/pages/index.xhtml. ------. American Community Survey 2010. One- and three- year estimates and Public Use Microdata Sample. http://factfinder2.census.gov/facesav/jsf/pages/index.xhtml. The Measure of America 2013-2014 www.measureofamerica.org 9 ------. American Community Survey 2008. One-year estimates and Public Use Microdata Sample. http://factfinder2.census.gov/facesav/jsf/pages/index.xhtml. ------. American Community Survey 2005. One-year estimates and Public Use Microdata Sample. http://factfinder2.census.gov/facesav/jsf/pages/index.xhtml. ------. Census 2010. Summary File 1. http://factfinder2.census.gov/facesav/jsf/pages/index.xhtml. ------. Census 2000. Summary Files 1 and 3. http://factfinder2.census.gov/facesav/jsf/pages/index.xhtml. ------. Current Population Survey, Historical Tables P04 and P43. http://www.census.gov/hhes/www/income/data/historical/people/ White House Office of Management and Budget. \"Statistical Policy Directive No. 15, Race and Ethnic Standards for Federal Statistics and Administrative Reporting.\" Federal Register Notice, October 30, 1997. http://www.whitehouse.gov/omb/rewrite/fedreg/ombdir15.html. ------. \"Update of Statistical Area Definitions and Guidance on Their Uses.\" OMB Bulletin No. 1002. December 1, 2009. http://www.whitehouse.gov/omb/assets/bulletins/b1002.pdf. 1 See Chiang; Toson and Baker for more information. Office of Management and Budget, \"Update of Statistical Area Definitions and Guidance on Their Uses.\" 3 Office of Management and Budget, \"Statistical Policy Directive No. 15.\" 4 U.S. Census Bureau, A Compass for Understanding and Using American Community Survey Data: What General Data Users Need to Know. 2 The Measure of America 2013-2014 www.measureofamerica.org 10