Socio-economic Indexes in Surveys for Comparisons between Countries

The study of socio-economic inequalities from across-national perspective has been hampered by the lack of adequate common indices of socio-economic status that can be used in a self-report survey instrument. This paper examines the construction and the properties of global social indexes in general, and of the Family Affluence Scale (henceforth FAS) in particular. The paper proposes a new strategy for making comparisons of the global index with stratified data, building a revised FAS based on Adapted Canonical Variate Analysis (henceforth ACVA). This alternative strategy for constructing a global index is available in standard software, and the new proposal for stratified data only requires a simple program, which is justified, explained and provided in the text. Data come from the 1998 Health Behaviour in School-Aged Children (HBSC), a WHO Cross-National Study using cluster sampling of schoolchildren from five countries: Denmark, Latvia, Portugal, Scotland and the USA. The results reveal that in every country we would have had a completely different evaluation of the three indicators of Family Affluence if we had used either linear or nonlinear approaches to compute the global indexes. Moreover, Family Affluence comparisons among countries shows that the relative contribution of the three indicators to the overall FAS, changes from country to country. We conclude that separate indicators of Family Affluence are not equally relevant in each country and, as a consequence, do not contribute equally to the global index. For cross-cultural studies, the strategy for constructing an index should be country specific. The methodological developments presented in the paper open up opportunities to study socio-economic patterning of health among young people in the developed world, since self completed surveys can now employ a common measure of family material wealth. The findings show that the RFAS (Revised FAS) is a useful index of socio-economic status for use in national and cross-national surveys of adolescent health and health behaviour. The new strategy for weighting observed indicators in the index gives it enhanced power to detect in equalities.     

Multidimensional Analysis of Water Poverty and Subjective Well-Being: A Case Study on Local Household Variation in Faisalabad,Pakistan

Water poverty is difficult to evaluate because it is multidimensional. It is determined not only by the availability of water sources but also whether communities have adequate access to clean, uncontaminated water. It is also dependent on the resource needs of those using the water. Under the premise that water scarcity is multidimensional, we use a Water Poverty Index approach using Principal Component Analysis to develop an index at the household level in 10 villages in one large farming community to examine each household’s subjective view of well being as a result of water poverty. This paper reviews how water resources endowments and depletion because of indiscriminate disposal of untreated industrial wastewater, household sewage and climate change are posing serious threats to water poverty at the household level in developing agrarian economies like Pakistan. We report from our results that both the perceived level of pollution and the proximity to clean and polluted water sources matter significantly for subjective well-being in rural households of Pakistan. The villages closer to polluted water sources are unhappier while the villages, which have better access to fresh water, have relatively higher subjective well-being. A strong implementation of environmental protection measures and regional strategies are suggested to alleviate water poverty and increase subjective well-being in local communities.     

Measuring natural resource scarcity

One fundamental index of world social welfare is the availability of natural resources relative to population. In recent years, social, policy, and even physical scientists have been unable to reach consensus on whether natural resources are becoming increasingly scarce. The prevailing pessimistic view of the 1970s has been strongly challenged in the 1980s by resource-population optimists such as Julian Simon. In this paper, we argue that one source of failure to reach consensus is the fundamental ambiguity of available measures of natural resource scarcity. Surveying measures such as unit extraction cost, relative price, and the reserves-to-production ratio, we discuss difficulties of interpretation. Some of the problems identified may yield to further research, but others appear irremediable.     

The Ex-Ante Evaluation of Achieving Sustainable Development Goals

This paper describes the methodology and main results from an overall assessment on future achievement of sustainable development goals. The proposed approach consists of a model-based, looking forward composite sustainable development index—FEEM sustainability index—projected to the future. It represents a first experiment to reproduce the future dynamics of sustainable development indicators over time and worldwide and to assess future sustainability under different scenarios. The assessment presented here is relevant under different viewpoints. First, it has a very broad nature in terms of both geographical coverage and meaningfulness: it considers the multi-dimensional structure of sustainable development by combining relevant indicators belonging to economic, social and environmental pillars for the whole world. Second, the modelling framework to compute future trends of indicators relies upon a recursive-dynamic computable general equilibrium model. This is an ideal tool to look simultaneously at the development of many indicators, their potential interactions and trade-offs, and more in general to the consequences of economic development and/or policies aiming to increase performance in one or more indicators; it allows measuring the overall sustainability under alternative scenarios, across countries and over time. Finally, regarding the construction of the composite indicator, the application of fuzzy measures and Choquet integral increases substantially the model capability allowing taking into account the interactions that exist among the three main pillars of sustainability and the considered indicators.     

Does Human Development Index Provide Rational Development Rankings? Evidence from Efficiency Rankings in Super Efficiency Model

The human development index (HDI) rankings have provided a referenced measure for people to choose a country in which to travel or live. This paper employs a superefficiency model to evaluate the rationality of the HDI rankings of 19 evaluated OECD countries in 2009. Compared to the HDI rankings, the efficiency rankings measured by the super-efficiency model have the following two advantages: (1) they consider the inputs that are used to generate the indicators for constructing the HDI, and decide the weights of inputs and outputs endogenously; (2) the input slacks measured by the super-efficiency model can evaluate whether the inputs are over-used and provide the improvement path of each country’s input variables. Empirical result shows that approximately 75 % of the evaluated countries had rather different results in the efficiency rankings and the HDI rankings. Additionally, the input slack shows that roughly 70 % of sample countries over-used their capital per labor relative to their existing outputs (or the HDI).     

The weighting of an international health status index

The major purpose of this paper is to suggest possible weights for a global index of health status. The indicators for the global index are taken from the World Health Organization's definition of health as physical, mental and social well-being. These indicators are combined with mortality indicators to arrive at a finalized index. Survey methodology is used to make initial estimates of the weighting of appropriate indicators, based upon a sample of international health scholars. Preliminary results indicate that mortality is weighted 40%, physical health (morbidity and disability) 25%, mental health 15%, and social health 20%. These results are intended as a starting point for future research.     

Construction, Validation and Application of the Measurement of Social Cohesion in 47 European Countries and Regions

This paper aims to present a theoretically based, multidimensional and comparable measurement of social cohesion, applicable in 47 European countries/regions using the most recent micro-level data of the European Value Study (EVS) from 2008 that build upon the previous research conducted on the EVS data from 1999 covering 33 countries. The analysis is conducted in five steps. In the first part, we create a set of measurable intermediate indicators that correspond to the social cohesion dimensions suggested by the theory. In the second part, we verify whether these indicators empirically corroborate the multidimensional structure of the concept proposed by the theory. The third part examines whether the obtained intermediate indicators of social cohesion form the same constructs across countries and whether they can yield a cross-country equivalent measure of social cohesion. In the fourth step, composite scores of all dimensions of social cohesion are calculated for all analysed countries/regions. The last step shows a practical application of the obtained indices and compares levels of social cohesion in six broader geographical regions of Europe to demonstrate the applicability of the measurement in comparative research.     

Construct Validation and Application of a Common Measure of Social Cohesion in 33 European Countries

The aim of the paper is to assess the construct validation of a multidimensional measure of social cohesion which is well theoretically grounded and has an equivalent/comparable interpretation across all European countries. Up-to-now published research on social cohesion is deficient in either one or both of these important aspects. This paper attempts to cover this gap. The task is accomplished in two steps. In the first step, we conceptualize social cohesion, flowing mainly from Bernard and Chan’s definitions of social cohesion. Based on this theoretical framework we operationalize social cohesion and derive a set of intermediate indicators in the data. By return we verify whether these indicators empirically reflect/corroborate the multidimensional structure of the concept proposed by the theory. In the second step, we examine whether the obtained intermediate indicators of social cohesion form the same constructs across countries and whether they can yield a cross country equivalent measure of social cohesion. To test the validity of the theory we use multidimensional scaling and confirmatory factor analysis. Both models are able to verify the equivalence of the structural results between groups (i.e. countries). Confirmatory factor analysis produces further meaningful measures of these constructs. The analyses are based on the data from the 1999 European Values Study (EVS). The outcomes of the analyses reveal that, firstly, the existence of the multifaceted construct of social cohesion suggested by the theory has been corroborated by empirical analysis of the EVS data (i.e. social cohesion consists of components of formal and substantial relationships and political and socio-cultural domains). Secondly, the proposed constructs measuring social cohesion are equivalent across all analysed countries and thus allow the calculation of internationally comparable national scores of social cohesion. Application of the aggregate measures at the country level will illustrate the interest of the approach for further research.     

Are Major Events Capable of Affecting Country Rankings? Validating Composite Indexes of Human Progress and Environmental Performance

A desired characteristic of composite indicators is sensitivity to major adverse events. This paper explores how major civil wars and the 2004 tsunami have influenced Human Development Index (HDI) and Environmental Performance Index (EPI) index values of the affected countries, respectively. The analysis shows that HDI and EPI scores have barely changed, being almost exclusively due to variations in GNI/capita for HDI and air quality for EPI. This casts doubt on the composite indexes’ usefulness and their ability to reflect major environmental and societal changes in the affected countries, or shows which dimensions are truly resilient to these events and can constitute a sustainable base for postwar/post-disaster recovery. Human progress and ecological indicators may need an overhaul, in order to account for the changes that actually happen at a point in time, in order to capture substantial changes in the socio-economic and ecological fabric of a country.     

Estimating Cuban gross domestic product per capita in dollars using physical indicators

A methodology for estimating levels of gross domestic product per capita (GDP/capita) which obviates the need for estimating GDP/capita in domestic currency and converting to another currency is the physical indicators (PI) approach developed by Janossy-Ehrlich. Using this methodology, estimates of Cuban GDP/capita in dollars for four years (1965, 1970, 1975 and 1977) have been made. The estimates rely on the relationships between GDP/capita in dollars and levels of consumption or production of 24 physical indicators in 28 reference countries for each of the four years. The relationships are estimated using both univariate and multivariate regression techniques. The PI estimates of GDP/capita in dollars are compared with other measures of Cuban macroeconomic performance to test their reasonableness. The paper closes with some tentative conclusions regarding the applicability of the PI method to the estimation of GDP/capita in dollars for Cuba and for other developing countries.     

Measurement of social development: an international comparison

PQLI and HDI are the two most popular measures of development, besides per capita income. Over the years, PQLI appears to be not much in use for regional comparisons, especially after the introduction of HDI. While PQLI considers only the physical variables—adult literacy, life expectancy at birth and infant survival rate, HDI has life expectancy at birth, educational attainment and real GDP per capita (PPP$). PQLI and HDI are similar, the main difference between the two being the inclusion of income in HDI and exclusion of the same from PQLI. In a sense, HDI represents both physical and financial attributes of development and PQLI has only the physical aspects of life. The present author took the lines of PQLI to express development in terms of physical variables and considering development as a multidimensional phenomenon, Ray (1989) [Ray, A. K. (1989). On the measurement of certain aspects of social development, Social Indicators Research (Vol. 21, pp. 35–92). The Netherlands: Kluwer Academic Publishers.] included as many as 13 physical variables to represent social development across 40 countries; no financial variable was included in the construction of composite index, termed as the Social Development Index, SDI. Incidentally, like PQLI, SDI was introduced before HDI. Unlike PQLI and HDI, SDI considers (i) a large number of indicators representing various concern areas and (ii) a set of objective methods for combining the development indicators as a composite index. Ray (1989) has been restated and updated in this article with newer cross-country information. In the present study, SDI has been constructed for over 102 countries, including 21 OECD countries, using 10 development indicators, instead of 13 indicators in the past. Apart from presenting objective methods for combining indicators into SDI, the present study asserts that SDI works better than HDI as a measure of development for an international comparison. The views expressed in the article are those of the author and not of the institution he serves.     

Physical quality of life index: Some international and Indian applications

In this paper, an attempt has been made to construct the physical quality of life index (PQLI) for some countries and for the Indian States as well. Three important indicators, viz. literacy rate, infant mortality rate and life expectancy at birth, reflecting the quality of life have been chosen and combined with equal weights to obtain PQLI. The rationale of equal weights, apart from any subjective judgement, may also be found in a mathematical model presented here. It is observed that PQLI rises sharply with per capita GNP but after a certain stage, an increase of per capita GNP is not accompanied by an increase of PQLI.     

Application of Different Techniques of Factor Analysis to Develop Neighborhood Social Capital Rating Scale

Composite indicators are widely used to determine the ranking of countries, organizations or individuals in terms of overall performance on multiple criteria. Their calculation requires standardization of the individual statistical criteria and aggregation of the standardized indicators. These operations introduce a potential propagation effect of extreme values on the calculation of the composite indicator of all entities. In this paper, we propose robust composite indicators for which this propagation effect is limited. The approach uses winsorization based on a robust estimate of the distribution of the sub-indicators. It is designed such that the winsorization affects only the composite indicator rank but has no effect on the entities ranking in each sub-indicator. The simulation study documents the benefits of distribution-based winsorization in the presence of outliers. It leads to a ranking that is closer to the clean data ranking when compared to the ranking obtained using either no winsorization or the traditional winsorization based on empirical quantiles. In the empirical application, we illustrate the use of winsorization for ranking countries based on the United Nations Industrial Development Organization’s Competitive Industrial Performance index. We show that even though the sub-indicator ranking does not change, the robust winsorization approach has a material impact on the ranking of the composite indicator for countries with large discrepancies in the scores of the sub-indicators.

     

Is Economic Policy Uncertainty Related to Suicide Rates? Evidence from the United States

The main objective of this paper was to see whether different countries around the world show differences in their sustainability levels as captured in the indicators from the Sustainable Society Index (SSI, Van de Kerk and Manuel in Ecol Econ 66:228–242, 2012) according to their level of income. To do so, the X-STATIS and CO-STATIS multivariate techniques were employed. With these methods, our sample of 151 countries and 21 indicators can be jointly represented along four time periods. The results obtained permit us to visualize that the groups of countries by income levels show differences in some of the variables from the SSI, because of the lack of proximities between those variables and the countries. Moreover, with the X-STATIS technique, the possible evolution of the countries or indicators over time can be represented, and with CO-STATIS, the relations between the social, economic and environmental aspects can be shown as well. From our results we were able to deduce that, on the one hand, social and economic indicators, such as Public Debt or Employment, are associated with countries having high and upper-middle incomes, for example, Chile, Israel, Malta, Kuwait, Saudi Arabia, Oman, Spain, Portugal, France, Poland and Czech Republic. On the other hand, countries with low and lower-middle incomes are more associated with environmental issues. Also, after finding that the differences between the countries by income levels are mainly caused by the economic indicators, we carried out two CO-STATIS analyses, one for social and economic variables, and the other for economic and environmental variables. These findings led us to deduce that, generally, the social and economic indicators are not related to each other, nor are the economic indicators related to the environmental ones. However, for some of the countries individually both relations may be possible.     

The Social Indicators Movement at 50: Onwards in Unity or Divided?

Before we can move forward with new topics in quality of life research, it would be useful to settle a number of issues that have been a source of debate over the last 50 years. Broadly speaking, this leads to seven principles for measuring and describing quality of life: the central focus is on people; quality of life is about more than just economics; a full measurement must incorporate both objective and subjective indicators; quality of life incorporates several dimensions; the outcome must be viewed separately from the determinants; there must be attention for distribution and difference; the domains can be combined into an index (though this is not essential). The main debate is perhaps about whether or not there should be an index. An index is necessary if we wish to give social indicators the same status as economic indicators have through GDP. In my view, that is desirable. Once these principles are established, the agenda for future social indicators research can be shaped using a model-based approach incorporating several recommendations from Land and Michalos.     

Social Cohesion and the Labour Market: Societal Regimes of Civic Attitudes and Labour Market Regimes

The aim of this paper is to test the connections between the indicators used in the literature on social cohesion, which usually reflect ‘general’ values or behaviours, and indicators specific to a particular space, namely the labour market. A key question is the stability of the social cohesion’s indicators when moving from a societal level to the labour market. Based on data from the World Value Survey, and following a restrictive definition of social cohesion, a comparison is done, for European countries. Examination of the situation in the two spheres makes it possible to identify more or less homogeneous groups of countries and also to point to instabilities. ‘Regimes’ of social cohesion begin to emerge. As in most analyses, the Nordic countries (excluding Finland) have high scores in all the dimensions. Conversely, most of the new EU member states from the former Eastern bloc have low scores, particularly in the horizontal dimension of trust between individuals.     

Country-Level Investment in Cultural Opportunity Structures. A Potential Source of Health Differences Between 21 European Countries

Individual’s participation in cultural activities may positively affect health through a pathway mediated by social capital. We examine whether country-level investment in cultural opportunity structures was associated with between-country differences in self-rated health and, if so, whether these associations were mediated by citizens’ confidence in societal institutions, i.e., by institutional trust, regarded as a dimension of social capital. For 24,887 respondents in the European Social Survey, 2006, data on self-rated health, institutional trust (individual-level and country-level), and sociodemographic variables were linked with statistics-based country-level data on 10 indicators of cultural opportunity structures and mediator variables (gross domestic product (GDP), Gini index, and welfare state regime). Over and above the sociodemographics, six cultural indicators contributed to between-country health differences in logistic multilevel regression analysis: the percentage of arts students, the RC index, the percentage of writers and creative artists of total employment, exports of cultural goods, imports of cultural goods, and the number of feature films produced per capita. Controlling, furthermore, for trust, and country-level mediators, only imports of cultural goods contributed to between-country differences in health. No associations with other cultural indicators remained after controlling for GDP or welfare state regime. Institutional trust may partially mediate the significance of cultural investments for self-rated health. However, both cultural investment and trust may be concomitants of general prosperity and welfare policies. Future studies should investigate whether the countries’ welfare policies influence the transformation of cultural investment into institutional trust and which types of indicators best depict associations between investments and health.     

The Europe 2020 Index

This paper presents a new index to quantify, measure and monitor the progress towards the objectives of the Europe 2020 strategy. This index is based on a set of relevant, accepted, credible, easy to monitor and robust indicators presented by the European Commission at the time the strategy was launched. The internal analysis of the index shows that the Smart and the Inclusive growth dimensions of the strategy are strictly correlated and that the trade-offs between each of these two dimensions and the Sustainable one exist but are decreasing, suggesting that a change towards more sustainable models of development is occurring in Europe. The external analysis of the index shows that it can be a valid measure to assess the overall competitiveness of countries and that the most critical factors for this strategy to be successful are good governance and social capital.     

Welfare State Development in Latin America and the Caribbean (1970s–2000s): Multidimensional Welfare Index,Its Methodology and Results

There is an ongoing debate between focalization and universalization on welfare policies as the best way to develop the welfare state in Latin America and the Caribbean. However, there is a need to develop a measure that exhibits the multidimensional nature of the welfare state, instead of focusing on the social spending dimension. Segura-Ubiergo (The political economy of the welfare state in Latin America: globalization, democracy and development. Cambridge University Press, New York, 2007) constructed a welfare effort index (WEI) to facilitate understand the relative degrees of welfare state development among Latin American countries. The WEI focuses mainly on social spending and ignores the other dimensions of welfare. Based on a comparative analysis of 17 Latin American countries and following the methodology of Segura-Ubiergo, a new index that aims at enriching the WEI was constructed. The new index is multidimensional in that it has eight indicators relating to three dimensions of welfare: social spending, coverage of welfare programs and outcome of welfare institutions. Principal component analysis was used for reducing the indicators into three indexes that represent three proposed dimensions of welfare. The combination of these three indexes gives the multidimensional welfare index. The results of the index account for more than 75 % of the data variance.