Composite Indicator of Social Inclusion for European Countries

Social inclusion is one of the key challenges of the European Union (EU) Sustainable Development Strategy. We use four indicators from EU policies to measure social inclusion for the 27 member countries of Europe. In particular, we aggregate the four indicators in a multiplicative composite indicator via a DEA-BoD approach with weights determined endogenously with proportion constraints. We obtain a score of social inclusion that allows us to grade the 27 EU countries from 2006 to 2010. In this way, we highlight the specific role played by the four indicators in determining improvements and deteriorations of social inclusion during the European phase of the financial and economic crisis.     

A system of social indicators for the CMEA countries and for Hungary

This paper discusses the reasons for the growing demand for social indicators in Hungary and in other European socialist countries. A brief history of the construction of a system of social indicators within the framework of the Council of Mutual Economic Aid is given. The subsystems and the main indicators are described. The present practice and the problems of social classifications used in the social indicator systems and in social surveys are treated. In addition to the existing data sources of social indicators, sample surveys were considered to be necessary to provide a full and detailed view of Hungarian society. In addition to objective indicators, recently, subjective indicators have also been collected.     

A Benefit Recipiency Approach to Analysing Differences and Similarities in European Welfare Provision

In comparative welfare state research, the question of how to measure and understand cross-country differences and similarities in extents of public welfare provision has led to a major discussion about the indicators that could be used for this purpose. Much scholarly attention approaching this so-called ‘dependent variable problem’ concentrates on social expenditure or on social rights data as indicators of ‘welfare stateness’ or ‘welfare generosity’. However, recently, micro-level data on benefit receipt as another promising but hitherto underused indicator was brought into this discussion. The article at hand extends existing knowledge about the conceptual, methodological and empirical potentials and challenges of this alternative indicator compared to the two prevailing indicators. For the empirical analysis, it uses cash benefit recipiency data from the EU-SILC to investigate differences and similarities in extents of public welfare provision between 29 European countries for the period 2003–2012. The study reveals parallels to findings from research in which indicators of social expenditure and social rights are applied, but it also adds new insights beyond their cost and paper reality. This is mainly the case where priority is given to household-related assistance benefits rather than individual insurance benefits. The main conclusion of the paper is that the benefit recipiency indicator—despite not being flawless and requiring further research—complements existing knowledge on differences and similarities in welfare provision by European welfare states.     

Static Numbers to Dynamic Statistics: Designing a Policy-Friendly Social Policy Indicator Framework

In line with the economic crisis and rapid socio-demographic changes, the interest in ??social?? and ??well-being?? indicators has been revived. Social indicator movements of the 1960s resulted in the establishment of social indicator statistical frameworks; that legacy has remained intact in many national governments and international organisations. With this background, this research examines whether existing social indicator frameworks are valid and effective enough to address increasingly complex social issues. The authors argue that, despite some improvements, current social indicators fail to provide an effective framework and tool for measuring the progress of social welfare and also for developing or reforming social policy to cope with newly emerging social problems. While proposing a new social indicator framework based on the Organisation for Economic Co-operation and Development??s pressure-state-response (PSR) model, the paper argues that the new framework should be more than displaying static numbers but should use dynamic statistics revealing causes and effects and shedding light on social and policy changes.     

A Gender Wellbeing Composite Indicator: The Best-Worst Global Evaluation Approach

In this paper we present a new global evaluation methodology for constructing composite indicators. Given the limitations in the construction of wellbeing indicators that include a gender perspective, this paper proposes separate measures for men and women, using new linear programming models to improve the traditional Data Envelopment Analysis models. We obtain composite indicators using common weights (which are most and least favourable) so that the indicators’ values are able to discriminate between all units and provide a global vision of each one. This approach does not require prior knowledge of the weights for initial indicators, nor does it require a normalization method. Thus, the new composite indicator is less subjective than others. For the practical implementation of this proposal, we use the countries of the European Union as an example.     

Community Interests and Indicator System Success

Testing the validity of indicator systems is a task almost always left to the scientific community, in standard practice and in keeping with the quest for objectivity prevalent in politics and in society as a whole. This paper calls for a reinvigorated agenda within indicators research to question this practice and develop alternative methodologies to test the validity, legitimacy and impacts of indicator systems. The assumptions of objectivity are not realistic in contemporary policy contexts. As a result, the scientific community is not the only community with a stake in assessing an indicator system; it is perhaps not even the most important one. Four other community types with distinct interests in the design, use and impacts of indicator systems are identified. First is the community of elected officials, whose positions of power make their perspective important and unique; second is the community of engaged publics, whose stake is made clear by the principles of participatory and deliberative democracy; third are communities of cultural difference; and fourth are professional communities. The unique relationship each of these communities has with indicator systems, and thus the tests and challenges offered by each to the practice of indicators, is discussed through a case study of a public participation process for the development of a new set of regional sustainability indicators in Vancouver, Canada. The evidence suggests new research questions for scholars in policy and indicators studies who seek to better understand paths and barriers to implementation and impact in indicators practice, as well as lessons for other local indicators practices.

From the Replacement Rate to the Synthetic Indicator: A Global and Gender Measure of Pension Adequacy in the European Union

To measure the adequacy of pension systems in the world, one of the most commonly used indicators is the Replacement Rate. Our work is based on the statement that this indicator is imperfect itself to measure adequacy because it does not collect the multiple dimensions that it involves while being a static measurement. Consequently and based on the data provided by “The 2015 Pension Adequacy Report: current and future income adequacy in old age in the European Union” of the European Commission, in this paper we select a set of variables that are considered representative to measure the adequacy of pension systems from a dynamic and multidimensional perspective, and based on them, a synthetic adequacy indicator is developed. This indicator aims to compare European pension systems from the adequacy objective and to carry out continuous monitoring of the effects that the reform processes may have on the adequacy of pensions. The analysis is completed with the calculation of a gender indicator on pension adequacy for the European Union (EU-28) which identifies the still existing gap between men and women.     

Preaching to the Choir: Are the Commission’s Recommendations Already Applied?

As we have seen, the Commission’s final report outlines a comprehensive framework by defining some guidelines by: (a) identifying the limits of GDP as an indicator of economic performance and social progress, including measurement problems; (b) considering what additional information might be required for the production of more relevant social progress indicators; and (c) assessing the feasibility of alternative measurement and presentation tools. The report argues that GDP should not be completely eliminated by the options for measuring progress, but must be integrated with other information. In particular, the Committee defines three major areas in which indicators should be developed: economic conditions, quality of life and sustainability. In the European scene, but not only, there are many initiatives that aim at measuring the progress of countries and well-being through different conceptual frameworks and by using several indicators. This work intends to analyze some of those relevant initiatives by comparing and confronting them to the Commission’s recommendations, in order to check what already fits the commission recommendations and what still needs to be defined in that perspective.     

Measuring Active Citizenship through the Development of a Composite Indicator

This article defines Active Citizenship within a European context as a broad range of value based participation. It develops a framework for measuring this phenomenon which combines the four dimensions of Protest and Social Change, Community Life, Representative Democracy and Democratic values. The European Social Survey 2002 is used to populate the framework as this survey provided the best data coverage available and covered 19 European Countries. In total 61 indicators were selected. A composite indicator (CI), The Active Citizenship Composite Indicator (ACCI), is built using the framework provided and using experts’ weights. In addition, the robustness of the results is tested using sensitivity analysis. The limitations to the ACCI are explained in terms of the limitation of the data availability in particular concerning the new forms of participation and less organised forms of participation. Nevertheless, ACCI proved to be statistically robust and reliable and proved to be a useful tool for monitoring levels of citizenship in Europe. The results of ACCI exhibit interesting and quite distinct regional patterns. The results showed that the Nordic countries, and in particular Sweden, have the highest rate of Active Citizenship, followed by Central Europe and Anglo-Saxon countries. Mediterranean countries are next followed by Eastern European countries that close the ranking.

Highlighting Methodological Limitations in the Steps of Composite Indicators Construction

The paper opens the debate on the need to find a stable methodological framework in the construction of composite indicators (CIs) in order to address the methodological challenges including those of sensitivity and uncertainties related to methods used. As CIs are well-known to be essential in public debate, their methodological construction must be known by a large public. Illustrating CIs’ construction steps by a simple indicator, the paper aims to “democratize” this disciplinary field which is still a black box for some researchers but also to show how composite scores are sensitive to methods used and then, its impacts on policies. For example, in the Sustainable Development Indicator case, the geometric aggregation system is favorable to emerging countries which lead the ranking table whereas high income countries (which are leaders in the linear and equal weight system) except Australia, are misclassified. Uncertainty and sensitivity analysis confirm these results showing that the indexes’ scores seem to be influenced by the orientation (implied theoretical framework) given by its sponsors including policy makers. Regarding the validity of the index, correlation tests with some lights and well known indicators, reveal very consistent results.     

Measuring Subjective Issues of Well-Being and Quality of Life in the European Statistical System

Over the last decades, the European Statistical System has developed many European statistics and indicators to measure social progress and sustainable development. Initially only in a few cases the measuring instruments contained questions on subjective issues. With the adoption of its Communication on “gross domestic product and beyond” the Commission has given an impetus to the development of subjective social indicators. This has led to the establishment of a first set of indicators on quality of life and well-being and to a new instrument (the 2013 EU-SILC ad-hoc module for measuring subjective well-being). This new step in European statistics creates an important potential for researchers to engage in in-depth analysis and for national and European Union policy makers to use the resulting indicators—and in casu subjective well-being indicators—for developing and monitoring policy strategies and programmes.     

Lessons from the healthy cities movement for social indicator development

The author investigates emerging developments of social indicators through the experience of a health planning initiative begun in 1986 under the coordination of the World Health Organization (Europe). By 1993 over 400 municipalities in first world countries had voluntarily committed themselves to participation. The paper results from interviews and reviews of some participants' programs and materials, with significant reliance upon material from Canada and the coordinating WHO office. The author divides indicator development into political and technical components, stressing the former. He makes nine principal conclusions relating to indicators' success: (1) three stages of indicator development are understanding, consensus and commitment; (2) indicators must be grounded in target population's reality; (3) indicators are historical artifacts; (4) programs must be in place that make indicator need apparent; (5) process is product; (6) new skills must be supplied; (7) indicators are client-driven; (8) good process protects indicators' integrity from inappropriate influence; and (9) quality is a culturally-derived value defying aggregation.     

Data Envelopment Analysis for Composite Indicators: A Multiple Layer Model

The development of a composite indicator (CI) over a set of individual indicators is worthwhile in case the methodological aggregation process is sound and the results are clear. It can then be used as a powerful tool for performance evaluation, benchmarking, and decision making. In this respect, data envelopment analysis (DEA), as a self appraisal technique, has recently received considerable attention in the construction of CIs for policy analysis and public communication. However, due to the ever increasing complexity of numerous performance evaluation problems, more and more potential indicators might be developed to represent an evaluation activity in a more comprehensive way. These indicators might also belong to different categories and further be linked to one another constituting a multilayer hierarchical structure. Simply treating all the indicators to be in the same layer as is the case in the basic DEA model thereby ignores the information on their hierarchical structure, and further leads up to weak discriminating power and unrealistic weight allocations. To overcome this limitation, a multiple layer DEA-based CI model is developed in this study to embody a hierarchical structure of indicators in the DEA framework, and both its primal and dual form are realized. The proposed model is illustrated by constructing a composite road safety performance index for a set of European countries.     

The social meaning of social indicators

While new modes of data processing have provided reams of data, there has been relatively less effort in seeking to comprehend the social meaning of results of empirical work. A set of previously developed indicators of urban social structure is here examined for its link to theory, and to the social structure of the city itself. The original indicators (size, social class, racial composition and community maturity) were empirically derived. In this paper, each is taken in turn, and explored with respect to several possible social meanings. Size, for example, is considered to be itself an indicator, and an imperfect one, for system complexity; percent non-white is seen to be itself an indicator for a slowdown in the mobility process, or a slower social metabolism. These and other results are suggestions, with illustrations, but not conclusive support, from other than the original data. While it is hoped that the theoretical suggestions may themselves be of interest, it is also hoped that approach itself can indicate the fertility and usefulness of going back to theory once empirical measures have been developed.     

Wellbeing in China

Partial order methodologies appear as advantageous tools to disclose evaluative trends and developments for time series as, e.g., the fragile states index (FSI). The present study focuses on the variations in the 12 individual indicators of the FSI over the years 2011–2015. The FSI includes in total 178 states and the present study analyzes both the full set of states and a subset comprising only the 28 European Union states. Clear trends are observed. Thus, on a global scale the primary importance of brain drain apparently is turned into group grievance whereas on the European scale the development discloses the increased problems associated with the increasing number of refugees and migrants as well as the declining economic situation in some states. Further the study discloses a series of so-called peculiar states, i.e., states where single indicators values are markedly higher or lower than expected when comparing to the “main stream” of indicator values for the states studied. In all cases the findings were substantiated and verified by available literature.     

Social Development Trends in Europe, 1970–1994: Development Prospects for the New Europe

The European region is undergoing dramatic social change. Among other regional and international forces, these changes are rooted in: the collapse of the former Soviet Union; the sudden appearance of a large number of “new” – mostly poor and politically unstable – European nations; and, the emergence of economic trading blocs in North America and Asia. At the same time, the majority of “established” European nations are experiencing sluggish rates of economic growth, moderate to high levels of inflation, high unemployment, escalating demands on public social services, and low fertility in combination with high rates of population aging and immigration from developing countries. Despite the seriousness of the dilemmas confronting the region, European development accomplishments of the past 25 years suggest that the region's leaders already possesses the resources required to solve its complex, social, political, and economic challenges.     

Using Ranked Weights and Acceptability Analysis to Construct Composite Indicators: A Case Study of Regional Sustainable Society Index

A variety of published composite indicators, i.e., Energy Trilemma Index and Sustainable Society Index, are commonly aggregated with equal weights. However, this plausible scheme is criticized as eclecticism and ignores the discriminating power of the different indicators. Differing from the traditional methods that assign weights to each indicator for the purpose of aggregation, this paper proposes a new mechanism to construct composite indicators using ranked weights and stochastic multicriteria acceptability analysis. More specifically, this study comprehensively consider all possible preferences among the indicators. Under each preference, we develop a sophisticated mathematical transformation to calculate the least and most favorable scores of each entity, which formulates the lower and upper bounds of the intervals. Then an interval decision matrix, alternatively described as a stochastic decision problem, is formulated to construct the composite indicators. Holistic acceptability indices are generated and regarded as a new composite indicator, which is capable of providing a comprehensive and robust composite indicator with more discriminating power. We apply the proposed method to modify the regional sustainable society index and present the obtained results and comparisons.     

Sustainable Housing in the Urban Context: International Sustainable Development Indicator Sets and Housing

Housing, an essential aspect of quality of life, is also significant for sustainable development (SD). All of the major international statements on SD refer to housing or settlement strategies. However, indicator sets derived from these statements often fail to include good indicators of sustainable housing. This article outlines the conceptualisation of SD and housing from the international statements. It proceeds by describing the international indicator sets which have been constructed based on these policy statements. International organisations such as the United Nations Commission on Sustainable Development (UNCSD), the Organisation for Economic Co-operation and Development (OECD) and the European Union (EU) have all produced indicator sets. However, this article contends that housing is an underdeveloped indicator and calls for more attention to be paid to the importance of aspects of housing for SD and the measurement of progress towards it via social indicators.

Assessment of Composite Indicators Using the ANOVA Model Combined with Multivariate Methods

The synthesis of a number of single observed indicators into a unique composite indicator involves various subjective choices related, for instance, to the type of combination (linear, non-linear) and to the aggregation method (simple average, geometric average) used in its construction. Thus, it is clearly important to analyse the variability of a composite indicator according to all possible alternatives before employing it in any decision-making process. Within such a framework, in this paper, we present a new approach based on a combination of explorative and confirmative analyses aiming to investigate the impact of different subjective choices on the variability of composite indicators. This new approach also allows the analysis of the related individual differences among the statistical units and the use of external information on the same units to enhance the interpretation of the final results.