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The Measurement of Non-economic Inequality in Well-Being Indices

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Abstract

This paper is a critical review of composite well-being indices that account for inequality. Many well-being indices build upon the idea that while income and wealth are important, they do not constitute a person’s actual quality of life. However, first of all, the analysis finds that while well-being indices aim to go “beyond GDP” and other primarily economic indicators, many of them, unfortunately, do not focus on inequality at all. Secondly, most indices which include inequality in their measurement, only account for economic inequality. Thirdly, the article finds that the most comprehensive wellbeing index in terms of inequality is the Inequality-adjusted Human Development Index which adjusts for economic, health and education inequality. This article finds that well-being indices should make further strides to ensure the capture of non-economic inequality in terms of education and health.

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Notes

  1. A similar criteria was used in (Bleys 2012, p. 357) but in this study important changes do apply.

  2. TIMSS stands for the Trends in International Mathematics and Science Study, PIRLS for the Progress in International Reading Literacy Study, PISA for the Programme for International Student Assessment.

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Peterson, L. The Measurement of Non-economic Inequality in Well-Being Indices. Soc Indic Res 119, 581–598 (2014). https://doi.org/10.1007/s11205-013-0513-6

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