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The Analysis of Well‐Being Using the Income‐Adjusted Multidimensional Synthesis of Indicators: The Case of China☆

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  • Mario Biggeri
  • Luca Bortolotti
  • Vincenzo Mauro

Abstract

In multidimensional indexes employed to measure well‐being and deprivation, income is sometimes included and sometimes excluded. The aim of this paper is to reconsider the role of income in the measurement of multidimensional well‐being by recognizing that it can indirectly contribute to individual well‐being, even if it is not regarded as a goal in itself. This involves introducing a new composite index: the Income‐adjusted Multidimensional Synthesis of Indicators (I‐MSI). To illustrate this index, individual‐level data from the 2015 China Household and Nutrition Survey (CHNS) are analyzed. Results confirm the soundness of I‐MSI approach as a multidimensional aggregation method and show that it can capture disparities across Chinese macro‐regions and variations among different segments of society.

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  • Mario Biggeri & Luca Bortolotti & Vincenzo Mauro, 2021. "The Analysis of Well‐Being Using the Income‐Adjusted Multidimensional Synthesis of Indicators: The Case of China☆," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(3), pages 684-704, September.
    • Handle: RePEc:bla:revinw:v:67:y:2021:i:3:p:684-704
    DOI: 10.1111/roiw.12488
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