Puerto Rico's Human Development Index and Inequality-Adjusted Human Development Index (2013 – 2022)

Abstract

This research note analyzes Puerto Rico's socioeconomic development from 2013 to 2022 through the lens of the Human Development Index (HDI) and its Inequality-Adjusted counterpart (IHDI). Developed by the United Nations Development Programme (UNDP), these indicators provide a multidimensional framework for understanding development, encompassing health, education, and income. Unlike GDP, which focuses solely on economic output, the HDI captures broader aspects of human development, while the IHDI highlights inequalities within these dimensions. Puerto Rico's recent trajectory reveals progress from medium to high development levels, driven largely by federal recovery funds. However, significant income inequality persists, as shown by the gap between the HDI (0.868) and IHDI (0.700).

JEL Classification: O15, I31, R11

Keywords: Human Development Index, Inequality, Puerto Rico