IDEAS home Printed from https://ideas.repec.org/a/taf/jhudca/v19y2018i4p456-476.html
   My bibliography  Save this article

Measuring Well-being: A Multidimensional Index Integrating Subjective Well-being and Preferences

Author

Listed:
  • Lin Yang

Abstract

Policymakers have begun looking for multidimensional alternatives to income-based measures for assessing well-being in societies. The Human Development Index (HDI) and related composite indices have been widely criticized in the welfare economic literature, yet are still some of the most influential income-alternatives in the research and policy arena. What are the theoretical links that bridge the gap between these composite indices and the criticisms levelled at them? This paper introduces the “preference index approach,” a multidimensional measure bringing together the “equivalence approach” and the “distance function” in welfare economic theory. It retains convenient similarities with HDI-type composite indices, but assesses well-being in a way that reflects interpersonal differences in preferences between dimensions of well-being, whilst retaining comparability of well-being levels between individuals. The approach is applied empirically with data from the British Household Panel Survey (BHPS) to estimate different preference types between well-being dimensions. The empirical application finds that preferences differ by age, education level and unemployment status, and finds a weaker preference for the health and income dimension within older groups. Across all groups, health is strongly prioritized over income. When preference heterogeneities are taken into account, the picture of well-being looks quite different than that painted by standard welfare measures.

Suggested Citation

  • Lin Yang, 2018. "Measuring Well-being: A Multidimensional Index Integrating Subjective Well-being and Preferences," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 19(4), pages 456-476, October.
    • Handle: RePEc:taf:jhudca:v:19:y:2018:i:4:p:456-476
    DOI: 10.1080/19452829.2018.1474859
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/19452829.2018.1474859
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/19452829.2018.1474859?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rémi Yin & Anthony Lepinteur & Andrew E Clark & Conchita d'Ambrosio, 2021. "Life Satisfaction and the Human Development Index Across the World," Working Papers halshs-03174513, HAL.
    2. Nicola Amendola & Giacomo Gabbuti & Giovanni Vecchi, 2023. "On some problems of using the Human Development Index in economic history," European Review of Economic History, European Historical Economics Society, vol. 27(4), pages 477-505.
    3. Swen Kuh & Grace S. Chiu & Anton H. Westveld, 2020. "Latent Causal Socioeconomic Health Index," Papers 2009.12217, arXiv.org, revised Oct 2023.
    4. Ayelech Kidie Mengesha & Thomas Bauer & Doris Damyanovic & Sayeh Kassaw Agegnehu & Reinfried Mansberger & Gernot Stoeglehner, 2022. "Gender Analysis of Landholding and Situation of Female-Headed Households after Land Registration: The Case of Machakel Woreda," Land, MDPI, vol. 11(7), pages 1-28, July.
    5. Rocío Vela-Jiménez & Antonio Sianes, 2021. "Do Current Measures of Social Exclusion Depict the Multidimensional Challenges of Marginalized Urban Areas? Insights, Gaps and Future Research," IJERPH, MDPI, vol. 18(15), pages 1-16, July.
    6. F. Swen Kuh & Grace S. Chiu & Anton H. Westveld, 2019. "Modeling National Latent Socioeconomic Health and Examination of Policy Effects via Causal Inference," Papers 1911.00512, arXiv.org.
    7. Agustín Alvarez & Marcela Svarc, 2021. "A variable selection procedure for depth measures," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 105(2), pages 247-271, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jhudca:v:19:y:2018:i:4:p:456-476. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CJHD20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.