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The Empirics of Social Progress: The Interplay between Subjective Well-Being and Societal Performance

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  • Daniel Fehder
  • Michael Porter
  • Scott Stern

Abstract

Though economists have long recognized that GDP is not by itself a measure of societal well-being, most GDP alternatives incorporate direct measures of economic performance. We propose instead an independently constructed measure, a social progress index, focusing exclusively on noneconomic dimensions of societal performance, highlighting three core dimensions—basic human needs, foundations of well-being, and opportunity. GDP and social progress are correlated but distinct, the social progress dimension least related to GDP (opportunity) is strongly related to subjective well-being, and the relationship between social progress and well-being is greater for individuals at lower relative income and educational attainment.

Suggested Citation

  • Daniel Fehder & Michael Porter & Scott Stern, 2018. "The Empirics of Social Progress: The Interplay between Subjective Well-Being and Societal Performance," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 477-482, May.
    • Handle: RePEc:aea:apandp:v:108:y:2018:p:477-82
    Note: DOI: 10.1257/pandp.20181036
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    References listed on IDEAS

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    Cited by:

    1. Boulton, Thomas J., 2022. "Social progress, business formation, and access to investment capital," Emerging Markets Review, Elsevier, vol. 50(C).
    2. C. O. Henriques & L. A. Lopez-Agudo & O. D. Marcenaro-Gutierrez & M. Luque, 2021. "Reaching Compromises in Workers’ Life Satisfaction: A Multiobjective Interval Programming Approach," Journal of Happiness Studies, Springer, vol. 22(1), pages 207-239, January.
    3. Jesús Peiró-Palomino & Andrés J. Picazo-Tadeo & Vicente Rios, 2020. "Social Progress Around the World: Measurement, Evolution and Convergence," Working Papers 2006, Department of Applied Economics II, Universidad de Valencia.
    4. Andrea M. Prado & Ronald Arce & Luis E. Lopez & Jaime García & Andy A. Pearson, 2020. "Simulations Versus Case Studies: Effectively Teaching the Premises of Sustainable Development in the Classroom," Journal of Business Ethics, Springer, vol. 161(2), pages 303-327, January.

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    More about this item

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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