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The Analysis of Well‐Being Using the Income‐Adjusted Multidimensional Synthesis of Indicators: The Case of China
Author(s) -
Biggeri Mario,
Bortolotti Luca,
Mauro Vincenzo
Publication year - 2021
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/roiw.12488
Subject(s) - soundness , multidimensional analysis , china , index (typography) , econometrics , economics , multidimensional scaling , measure (data warehouse) , zhàng , composite index , macro , computer science , statistics , composite indicator , mathematics , geography , data mining , archaeology , world wide web , programming language
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.