Predicting Consumption Poverty using Non-Consumption Indicators: Experiments using Indonesian Data

Household consumption expenditure data is crucial for calculating important welfare measures such as poverty headcount rate. However, collecting such data is difficult and cumbersome. As an alternative, we experiment with three methods – consumption correlates model, poverty probability model, and wealth index principal components analysis (PCA) – to predict consumption expenditure and poverty using non-consumption indicators. The purpose is to use these alternatives for rapid monitoring and appraisal of social welfare as an early warning system. We test each method’s performance and find that the consumption correlates model is the best method to predict poverty quickly and relatively accurately. We find that education level, asset ownership, and consumption pattern are the best predictors of expenditure and poverty.     

Measuring is Believing! Improving Conventional Indicators of Welfare State Development

Welfare effort (social spending as a percentage of GDP) has conventionally been the preferred measure for comparisons in space and time of the level of development of welfare states. However, a wide variety of other measuring systems are potentially available in this field, because there are different sources and different methods for calculating social spending, so a variety of indicators can be calculated, each of which best reflects a different aspect of social protection systems. This paper presents two innovations: first it proposes options other than those generally used to measure the relative development of welfare states. Secondly, it uses those new measurements to show that some widely accepted conclusions on the relative development of welfare states need to be reviewed.     

OECD: One or Many? Ranking Countries with a Composite Well-Being Indicator

In the social sciences it is hardly contested that “institutions matter”. Consequently the analysis of differences and similarities of institutions should be a routine task. Prevailing methods to the measurement of institutions are however problematic, in particular when they have to deal with different levels of measurement. To overcome this, in this paper we present an innovative method to the quantification of qualitative institutional data. We do this by, first, developing benchmarks for comparison based on Weberian ideal types. Then we identify and operationalise the dimensions and indicators to a nuanced measurement of institutions, after which we apply a careful and differentiated scoring, weighting and aggregation procedure in order to guarantee the highest standards of comparability, transparency and reliability of the method. Finally, we demonstrate our method by applying it to the analysis of institutional individualisation in European welfare institutions.     

Multi-Dimensional Analysis of International Social Indicators – Education,Economy, Media and Demography

Using multi-dimensional analysis methods, it ispossible to uncover a structure representing therelationship between multiple internationaleducational, social and economic indicators. In thisstudy, we applied Smallest Space Analysis to datacollected by international agencies for 138 countriesand 20 indicators. A preliminary structure was foundand replicated for different data sets. Thisstructural interrelationship shows that these variousindicators are part of a larger field called welfare.This structure can be further expanded and refined tobe used as a tool for indicator selection.     

An Assessment of Social Welfare in Spain: Territorial Analysis Using a Synthetic Welfare Indicator

The aim of this paper is measure social welfare in Spanish provinces. To achieve this, we use the distance method P₂ to compose a synthetic indicator of welfare for 2007, the last year for which data are available. The index comprises information on different social indicators from various life domains and enables a classification of Spanish provinces, as well as a study of the impact of each individual indicator in order to determine provincial disparities in social welfare levels.     

Ageing and Living Conditions of the Elderly: Sweden 1980–1998

General social reports on ageing and the elderly in Sweden have been published regularly since the 1970s, within the regular system of social reporting for Sweden, based on large-scale annual social surveys ongoing since three decades (ULF). This paper presents key findings from the recent social report for the elderly (Vogel et al., 2000). The recent report studies cross-sectional and longitudinal change in living conditions (trends over two decades; 1980–1998; register and survey data; n = 112,400), comparing between all three generations (youth, elderly, and mid-age), using a set of 82 social indicators within 12 social domains, and furthermore decomposing change in different generations by additional cleavages (social class, gender, family, region). Age variation and trends in living conditions are interpreted with respect to the changing welfare mix, i.e. the institutional configuration between labour market, welfare state and family. Findings are summarized as a generally widening generation gap, with improved living conditions for the elderly, and decreased conditions for the youngest generation.     

On the measurement of certain aspects of social development

An attempt has been made in this paper to measure social development. There has been some limited use of per capita national income as a measure of development. A number of social indicators from various societal areas may, alternatively, better represent social development of a region. A composite index of selected social indicators has been proposed as a measure of social development. Certain existing methods of construction of composite indexes have been examined and new methods proposed using the variance-covariance matrix and intercorrelation matrix of the indicators and the concept of (Euclidean) distance. Two examples of intertemporal and international comparisons have been presented to illustrate the proposed methods.The author is grateful to Prof. M. Mukherjee under whose supervision and guidance this work was carried out. However, the views expressed in this paper are those of the author and not of the institution to which he belongs.     

Beyond GDP: Classifying Alternative Measures for Progress

Both the potential pitfalls of macro-economic policies focused on stimulating economic growth and the problems involved in using GDP as a measure of well-being or economic welfare have long been recognized by economists and researchers from other social sciences. Therefore, it is no surprise that alternative measures for policy-making have been developed and promoted since the early 1970s. Over the past 5?years, the development of these measures has gained momentum both politically and academically. However, most research efforts concentrate on the development and promotion of individual indicators, while paying less attention to the wide range of indicators already available and to theoretical insights. As a result, few classification schemes of alternative measures exist today to help policy-makers in selecting a proper set of indicators. This paper first looks into the different classification schemes available in the literature and outlines the weaknesses in each of these. Afterwards, an alternative classification scheme is introduced that draws on the notions of well-being, economic welfare and sustainability. A further sub-categorization is built on the different approaches that are used to quantitatively capture the notions. By focusing on the underlying concepts that the different measures aim to quantify, the alternative classification scheme overcomes the drawbacks of the existing schemes. Finally, 23 alternative measures for policy-making are reviewed and organized into the newly developed classification scheme.     

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.     

An Economic Wellbeing Index for the Spanish Provinces: A Data Envelopment Analysis Approach

 This article presents the estimation of a synthetic economic wellbeing index using Data Envelopment Analysis (DEA). The DEA is a multidimensional technique that has its origins in efficiency analysis, but its usage within the social indicators context is particularly appropriate. It allows the researcher to take advantage of the inherent flexibility of DEA when assigning weights to the factors. The model itself carries out the aggregation and weighting of 8 partial indicators, which attempt to describe the four components of economic wellbeing suggested by Osberg (Royal Commision on the Economic Union and Development Prospects for Canada (University of Toronto Press, 1985)), in order to assess the economic wellbeing of the 50 Spanish provinces. By using the index obtained in the analysis a “ranking” of the provinces is obtained. This ranking proves to be relatively similar to the one that corresponds to per capita income, although there are significant differences.     

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.     

Voluntary Work in Europe: Comparative Analysis Among Countries and Welfare Systems

The main contribution of this paper to the research of volunteering participation is considering simultaneously different levels of data aggregation: individual, country and welfare regimen. This strategy allows us identifying individual factors (socio-demographic variables) and contextual data (government expenditures on social issues and GDP), as well as comparing different political backgrounds (welfare systems). Our results suggest that socio-demographic characteristics and contextual data are important predictors of volunteer rates. Macro-policies might be effective tools to promote national volunteering participation, because international differences on volunteer rates smooth with the introduction of national contextual data.     

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.     

Integration into the Social Democratic Welfare State

This article examines the assumption that the social democratic welfare state is better than others in integrating immigrants into society, or at least that the comprehensive welfare state should compensate for the problems of labour market entry. A number of key indicators from The Living Conditions Survey are used to show that this assumption is inherently wrong. Immigrants do not have the same possibilities to enter the labour market, which is shown to have severe affects on other important areas of social and political citizenship. It stands clear that the social democratic welfare state, built and expanded on grounds of homogeneity, is insufficient to deal with changing circumstances in a plural society.     

Composite Indices of Development and Poverty: An Application to MDGs

The measurement of development or poverty as multidimensional phenomena is very difficult because there are several theoretical, methodological and empirical problems involved. The literature of composite indicators offers a wide variety of aggregation methods, all with their pros and cons. In this paper, we propose a new, alternative composite index denoted as MPI (Mazziotta-Pareto Index) which, starting from a linear aggregation, introduces penalties for the countries or geographical areas with ‘unbalanced’ values of the indicators. As an example of application of the MPI, we consider a set of indicators in order to measure the Millennium Development Goals (MDGs) and we present a comparison between HDI (Human Development Index) methodology, HPI (Human Poverty Index) methodology and MPI.     

Comparing MCDA Aggregation Methods in Constructing Composite Indicators Using the Shannon-Spearman Measure

Composite indicators have been increasingly recognized as a useful tool for performance monitoring, benchmarking comparisons and public communication in a wide range of fields. The usefulness of a composite indicator depends heavily on the underlying data aggregation scheme where multiple criteria decision analysis (MCDA) is commonly used. A problem in this application is the determination of an appropriate MCDA aggregation method. Of the many criteria for comparing MCDA methods, the Shannon-Spearman measure (SSM) is one that compares alternative MCDA aggregation methods in constructing composite indicators based on the information loss concept. This paper assesses the effectiveness of the SSM using Monte Carlo approach-based uncertain analysis and variance-based sensitivity analysis techniques. It is found that most of the variation in the SSM arises from the uncertainty in choosing an aggregation method. Therefore, the SSM can be considered as an effective measure for comparing MCDA aggregation methods in constructing composite indicators. We also use the SSM to evaluate five MCDA aggregation methods in constructing composite indicators and present the findings.     

Quality of Life in Italian Official Surveys

Quality-of-life studies have a 50-year history and inherited the tradition of the “social indicators” movement, born in the United States during the sixties and involving scholars and researchers, supported by the public administration and interested in gathering and analysing data aimed at studying non-economic components of societal wellbeing. The idea of quantifying “symptoms” (indicators) of living conditions has been launched by Italian statistician and criminologist, Alfredo Niceforo, who has been recognised as the pioneer of social-indicators concept. Moreover, with his book on Les indices numérique de la civilisation et du progrès, he may be considered the originator of an approach of comprehensive welfare and quality of life measurement as it is the concern of modern social indicators and quality of life.     

Work disability and migration in the early years of welfare reform

The inter- and intra-state migration of American families with work-disabled members is a neglected area of empirical study. Longitudinal migration and health status data from the 1996 Panel of the Survey of Income and Program Participation (SIPP) are merged with state-level welfare policy indicators to investigate migration behavior under welfare reform’s emphasis on requiring work and encouraging reliance on social support networks. We use a nested discrete-choice event history model that incorporates the departure decision and interstate destination choice in a single model that tests the effects of state-level welfare policy and economic opportunity characteristics, with state fixed effects, plus family sociodemographic characteristics and social networks, as the basis for comparing migration of families with and without work disabilities. The results show that although families with disabilities and illnesses are less likely to migrate than other families generally, they are “pushed” to migrate if they live in states that do not exempt them from TANF activities requirements. Furthermore, in-migration is inhibited by stringent state welfare illness exemption rules and high state unemployment rates. Intrastate migration is more likely among families who received family and community social support, regardless of work-disability status.     

Theorizing indicators

Policymakers and social theorists have increasingly come to rely on social indicators to guide their decisions and theories. Social indicators are also useful in bridging theory and empirical research as well as the traditional gap between policymaking and social theory. The concept of social indicators covers interpretation of cultural signs, simple statistical measures, and complex statistical indexes related to sets of domains. The article views the development of child well-being indicators as central not only in the social welfare field, but as an indicator of future societal conditions, given that children’s lives are especially sensitive to social change. The paper addresses the development of indicators of children’s well-being, arguing that the expansion of the field, the complexity of new domains and indicators, and the position of children as “being” and “becoming”, they are citizens of the present as well as being socialized for the future, illustrates that the next crucial step for the field is to further elaborate theories and models.