Rethinking Welfare Economics:a direct Operationalisation of Sen’s

Capability Approach

Paul AnandEconomics, The Open University andHealth Economics Research Centre, Oxford University

Turin, ItalyDepartment Seminar

Turin December 2013

Rethinking Welfare Economics: A Capability Approach

Motivation Background and Theory

Measurement (Data Development)

Development and Happiness of Very Young Children

Conclusions

Three Major Themes

Capability approach provides a feasible way of going beyond GDP (eg Petty/Kuznets/Stone/Sen)

QOL/experienced utility is highly multi-dimensional

Capability approach permits application of production and distributional concerns to consumers/citizens/QOL and is therefore a feasible complement to Edgeworth Box welfare economics

Capabilities Measurement Project Some Collaborators and Advisors

Philosophy and Social Science

Ian CarterKeith DowdingFrancesco GualaMartin van HeesGraciela TononMaria Sigala

AHRB

Economics and Health

Alastair GrayGraham HunterPaula LorgellyJaya KrishnakumarPeter MoffatCristina SantosJudit SimonRon SmithLaurence RoopeAmartya SenJames Heckman

Leverhulme Trust

Some publications…

Journal of Human Development and Capabilities (2009)

Chapter in Festschrift for Amartya Sen Arguments for a Better World, Oxford University Press, Basu and Kanbur, (2009)

Journal of Public Economics (2011)

Social Indicators Research, Journal of Health Economics, Journal of Medical Ethics, Health Economics etc

National Income Accounting

WilliamPetty

1600s RichardStone

1930son

Environ-mental

Criticismsof GDP

1970s SocialIndicatorsMovement

1980s on

AmartyaSen

CapabilitiesandHDI

1985/90-

Five Measurement Problems with GDP per head

Fails to account for loss of environmental assets

Excludes the value of household productive activities

GDP is not a measure of human wellbeing

Not all sources of wellbeing are strongly & positively related to income

Average GDP says nothing about distribution

Problems for Traditional Welfare Economics

Sum UtilityMaximisation(Utilitarian

WelfareEconomics)

What about Non-utility Claims

likeRights

and Responsibilities?

What about Non-welfareOutcomes

Like Freedoms?

What about theDistribution?

What PreferencesCount?

What DimensionsMatter?

Economic Theory (Sen 1985 pp11-4)ACTIVITES DEPEND ON RESOURCESEQ 1. fi = fi(xi) - heterogeneity in conversion

HAPPINESS DEPENDS ON ACTIVITIESEQ 2. ui = hi(fi) - happiness

CAPABILITIES ARE ALL THE ACTIVITIES POSSIBLE FOR A PERSON GIVEN

RESOURCESEQ 3. Qi = {f1,f2,…fm}/endowment -

advantage

xi is vector of commodities possessed by if(.) converts resources into activities (doings/beings aka

functionings)“Qi represents the freedom a person has in terms of the

choice of functionings, given his personal features Fi…and his command over commodities xi.”

Some Early Empirical Capabilities Research

Human Development Index

Schokkaert and van Ootegem (1990) Enrica Chiappero Martinetti (1994, 2000) Laderchi (1997) Kuklys (2005)

Andrea Brandolini (1999)

“The purpose is to assess the operational content of the approach ie the empirical methods to measure functionings and capabilities…much of what one can do depends the available data….we discussed the practical difficulties of moving to capabilities and proposed to remain in the (refined) functionings space.”

Source: Plenary paper given to the International Economics Association Congress, Buenos Aires

AHRB Project to Measure Capabilities (2005)

Research Question

Can we measure human capabilities across a wide spectrum of life domains within the conventions applicable to national household and social surveys?

Framework for QuestionsThe OCAP Survey

Nussbaum’s List

ComprehensiveRobust (similar to others)Don’t require universal claimsHas normative grounding

Question Categories

Life Bodily Health Bodily Integrity Senses Imagination and Thought Emotions Practical Reason Affiliation Nature Leisure Control over one’s Environment

Bodily Health

Being able to have good health, including reproductive health; to be adequately nourished; to have adequate shelter

2 Bodily Health Being able to have good health, BHEALTH (Q57) Does your health in any way limit your daily activities compared to most people of your age? Yes, No. BHPS including reproductive health; BREPRODUCT (Q61) Are you able to have children? Yes, No, Don't know, Prefer not to answer If No Please indicate the reason(s) you are not able to have children. I cannot have children because of: Q62_1 My age; Q62_2 I have had a vasectomy / hysterectomy; Q62-3 Another

medical condition; Q62_4 My partner being unable / unwilling; Q62_5 Another reason; Q62_6 Prefer not to answer. to be adequately nourished BNOURISH (Q59) Do you eat fresh meat, chicken or fish at least twice a week? Yes/No BHPS If No Q60 For which of the following reasons, if any, do you NOT eat fresh meat, chicken or fish at least twice a

week? [Please tick all that apply] I am vegetarian/vegan, I cannot afford to, I do not like eating fresh meat, chicken or fish that often, I do not have

time to prepare fresh food., Some other reason to have adequate shelter. BSHELTER (Q85) Is your current accommodation adequate or inadequate for your current needs? More than adequate, Adequate, Inadequate, Very inadequate BCANMOVE (Q86) Are you prevented from moving home for any reason? Yes, No If yes Q87 What prevents you from moving home? Lack of money/finances; The Council would be unlikely to re-house me; Family responsibilities and/or schooling; I

could not move out of my current accommodation because of some other reason

HEALTH STATUS

Does your health in any way limit your daily activities compared to most people of your age?

Yes, No. BHPS

REPRODUCTION

Are you able to have children? NEWYes, No, Don't know, Prefer not to answer

If no please indicate the reason(s) you are not able to have children

I cannot have children because of: Q62_1 My ageQ62_2 I have had a vasectomy / hysterectomyQ62_3 Another medical conditionQ62_4 My partner being unable / unwillingQ62_5 Another reasonQ62_6 Prefer not to answer

NOURISHMENT

Do you eat fresh meat, chicken or fish at least twice a week?

Yes/No BHPS with additions

If No(Q60)For which of the following reasons, if any, do you NOT eat

fresh meat, chicken or fish at least twice a week? [Please tick all that apply]

I am vegetarian/veganI cannot afford toI do not like eating fresh meat, chicken or fish that often I do not have time to prepare fresh foodSome other reason

ADEQUATE SHELTER

BSHELTER (Q85)Is your current accommodation adequate or inadequate for your

current needs?More than adequate, Adequate, Inadequate, Very inadequate

BCANMOVE (Q86)Are you prevented from moving home for any reason?

Yes, No

If yes (Q87)What prevents you from moving home?

Lack of money/finances; The Council would be unlikely to re-house me; Family responsibilities and/or schooling; I could not move out of my current accommodation because of some other reason

5 Types of Capability Indicators

Type 1. OpportunitiesType 2. AbilitiesType 3. ConstraintsType 4. Functionings + ReasonsType 5. Functionings + Universality

Analyses Multiple Dimensions of Wellbeing Deprivation and the Identification of the Poor Marginalisation and the Clustering of

Disadvantage Health and Wellbeing in Other Dimensions Nature and Costs of Domestic Violence

Wellbeing in Older Age Happiness and Development of Very Young

Children

Dependent Variable SWB2 Capability Variables Coeff. S.Error t-Stat Prob. BSHELTER 0.27 0.09 2.93 0.00 CDASALTP -0.17 0.08 -2.01 0.04 CSEXSAT 0.25 0.07 3.33 0.00 ELOVE 0.08 0.03 3.03 0.00 EFEELING 0.11 0.03 4.14 0.00 ESTRAIN -0.13 0.04 -3.24 0.00 FGOOD 0.09 0.03 3.17 0.00 FPLAN 0.12 0.02 5.10 0.00 FEVALUATE -0.06 0.03 -2.15 0.03 FROLE 0.36 0.05 6.89 0.00 GCONCERN 0.09 0.03 2.69 0.01 GHOLIDAY 0.27 0.08 3.28 0.00 GWORTH 0.35 0.04 7.86 0.00 JRACEWP -0.54 0.17 -3.18 0.00 JRACEWF 0.08 0.03 2.26 0.02 JSEARCH -0.05 0.02 -2.20 0.03 JSKILLSW 0.08 0.03 2.61 0.01 (linear approximations) Adjusted R-squared 0.53 Akaike info criterion 2.62 Schwarz criterion 2.73 Durbin-Watson stat 1.83

Gender DifferencesDependent Variable SWB2 Female Male Variable Coeff. S. Error t_Stat. Prob. Coeff. S. Error t_Stat. Prob. BSHELTER 0.39 0.13 3.05 0.00 0.02 0.15 0.14 0.89 CDASALTP -0.18 0.10 -1.75 0.08 -0.18 0.17 -1.10 0.27 CSEXSAT 0.14 0.11 1.29 0.20 0.29 0.11 2.70 0.01 ELOVE 0.12 0.03 3.54 0.00 0.02 0.04 0.62 0.54 EFEELING 0.04 0.04 1.00 0.32 0.16 0.04 3.91 0.00 ESTRAIN -0.04 0.05 -0.69 0.49 -0.16 0.06 -2.44 0.02 FGOOD 0.16 0.04 3.93 0.00 0.05 0.04 1.37 0.17 FPLAN 0.11 0.04 3.17 0.00 0.09 0.04 2.52 0.01 FEVALU8 -0.03 0.04 -0.90 0.37 -0.02 0.04 -0.62 0.54 FROLE 0.41 0.07 5.91 0.00 0.30 0.08 3.64 0.00 GCONCERN 0.13 0.05 2.60 0.01 0.08 0.06 1.32 0.19 GHOLIDAY 0.12 0.11 1.09 0.28 0.27 0.14 2.00 0.05 GWORTH 0.32 0.06 5.09 0.00 0.28 0.07 3.92 0.00 JRACEWP -0.23 0.26 -0.88 0.38 -0.73 0.23 -3.24 0.00 JRACEWF 0.04 0.05 0.87 0.39 0.07 0.05 1.56 0.12 MDSWORKF -0.40 0.14 -2.89 0.00 -0.11 0.15 -0.73 0.47 JSEARCH -0.03 0.04 -0.87 0.38 -0.05 0.03 -1.37 0.17 JSKILLSW 0.02 0.04 0.44 0.66 0.11 0.04 2.63 0.01 MWORK -0.03 0.23 -0.13 0.90 -0.75 0.25 -3.02 0.00 MAGE -0.03 0.02 -1.92 0.06 0.01 0.02 0.80 0.42 MAGE2 0.00 0.00 1.19 0.24 0.00 0.00 -0.58 0.56 MGHI 0.03 0.04 0.89 0.37 0.10 0.04 2.30 0.02 MRSOUTH -0.16 0.14 -1.14 0.25 -0.17 0.15 -1.14 0.26 MRMIDWLS 0.14 0.14 0.99 0.32 -0.11 0.15 -0.71 0.48 MRNORTH -0.13 0.13 -1.00 0.32 -0.12 0.14 -0.82 0.41 MRSCOT 0.13 0.18 0.73 0.47 -0.12 0.18 -0.63 0.53 PXTRAVRT 0.08 0.03 2.39 0.02 0.03 0.04 0.78 0.44 PAGREEBL -0.06 0.04 -1.34 0.18 0.00 0.05 -0.08 0.93 PCONSCS -0.07 0.04 -1.80 0.07 0.00 0.04 0.01 0.99 PSTABLE 0.13 0.04 3.52 0.00 0.14 0.04 3.32 0.00 POPEN -0.01 0.04 -0.32 0.75 -0.05 0.05 -1.13 0.26 Mean dependent var 4.82 4.80 Adjusted R-squared 0.58 0.54 Akaike info criterion 2.57 2.64 Schwarz criterion 2.87 2.98 Durbin-Watson stat 1.67 1.65

Our Latest Data 2012-3 Home

UK USA

HOME    

I am able to share domestic tasks within the household fairly

6.11 6.64

I am able to socialise with others in the family as I would wish

6.40 6.96

I am able to make ends meet 6.28 6.36

I am able to achieve a good work-life balance 5.81 5.98

I am able to find a home suitable for my needs 6.52 6.96

I am able to enjoy the kinds of personal relationships that I want

6.16 6.40

I have good opportunities to feel valued and loved 6.26 6.92

Work

UK USA

WORK    

I am able to find work when I need to 6.50 6.97

I am able to use my talents and skills at work 6.51 7.07

I am able to work under a good manager at the moment 6.10 6.79

I am always treated as an equal (and not discriminated against) by people at work

6.78 7.39

I have good opportunities for promotion or recognition at work

4.77 5.90

I have good opportunities to socialise at work 5.58 6.72

Community

UK USA

COMMUNITY   

I have good opportunities to take part in local social events

4.95 5.94

I am treated by people where I live as an equal (and not discriminated against)

7.09 7.60

I am able to practice my religious beliefs (including atheism/agnosticism)

7.59 8.12

I am able to express my political views when I wish 7.23 7.56

Environment

UK USA

 ENVIRONMENT

   

I am able to walk in my local neighbourhood safely at night 6.78 7.47

I am able visit parks or countryside whenever I want 7.42 7.55

I am able to work in an environment that has little pollution from cars or other

5.87 6.36

I am able to keep a pet or animals at home with ease if I so wish

7.11 7.77

I am able to get to places I need to without difficulty 6.97 7.56

Access to Services

UK USA

 ACCESS TO SERVICES

   

Make use of banking and personal finance services 7.62 7.92

Get my rubbish cleared away 7.45 8.25

Get trades people or the landlord to help fix problems in the house

6.69 7.15

Be treated by a doctor or nurse 7.27 7.52

Get help from the police 6.81 7.67

Get help from a solicitor 6.78 6.36

Get to a range of shops 7.60 7.76

2011-2 dataset To obtain a measure of activity participation, or functionings, we

collected binary indicators of 30 activities individuals may or may not have been involved in “yesterday.” Attending an evening class, caring for someone ill (unpaid),

commuting, cooking, DIY, drinking alcohol, exercising, housework, internet (personal use), internet (paid employment), intimate relations, listening to music, looking after a pet, other outdoor activities, paid employment, playing a musical instrument, praying or meditating, relaxing or napping, reading for pleasure, self-care, smoking, socialising, shopping, time with children, visiting a park or countryside, visiting a cinema/concert/gallery/museum, volunteering, watching TV, other

The choice of activities was largely influenced by work by Kahneman et al. (2004, AER).

2011-2 Data

We also collected data on a wide range of resources and personal characteristics.

Resource variables included income, education, health and a number of other socio-economic attributes.

For personal characteristics we collected data on ‘soft skills’ personality traits.

Topline results for distributions

CountryHDI

Score

Total Capability Score Life Satisfaction Score

Mean Std Dev Obs Mean Std Dev Obs

UK 0.863 20.378 7.356 1243 5.899 2.311 1689

USA 0.91 22.322 6.800 723 6.324 2.301 1059

Distribution of wellbeing variables

How we might compare wellbeing outcomes in the two countries when the measures are based on ordinal data?

We draw on recent work by Yalonetzky (2013, Econometric Rev), which provides stochastic dominance conditions for ordinal variables analogous results to those in a seminal paper by

Atkinson and Bourguignon (1982, Rev Econ Stud) in the context of continuous variables

Distribution of wellbeing variables

USA FOSD the UK for Total capabilities. However, even SOSD is not statistically significant

USA FOSD the UK for Work and Community capabilities. FOSD is statistically significant at the 1% level.

USA FOSD the UK for Home capabilities. FOSD is statistically significant, but only at the

10% level. SOSD is achieved at the 5% level.

Happiness regressions

Being unemployed is negatively and highly statistically significantly associated with life satisfaction in both countries.

Being married / living with partner is positively associated with life satisfaction statistically significant at the 1% level in the

USA and at the 5% level in the UK. Being white and having an above school

level education are also both positively related to life satisfaction in the UK

Happiness regressions

Capabilities are novel in the happiness literature and their inclusion leads to some striking observations.

In each country, both health and Home and Work capabilities are positively and statistically significantly related to life satisfaction at the 1% level.

Community capabilities are also positively related to life satisfaction in both countries (5%UK, 10%US)

Happiness regressions After controlling for capabilities, the positive effect of

household income becomes insignificant in both the USA and the UK. suggests that development of capabilities may be

an important mechanism via which higher levels of income can boost life satisfaction.

Similarly, the significance of being married or living with partner disappears after controlling for capabilities suggests that development of good health and

certain capabilities, particularly in the Home and Work, may be important transmission mechanisms

Happiness regressions …increases in R-squared values after including Health

and capabilities - to 0.548 in the USA and 0.571 in the UK (In the happiness literature, it is rare to see R-squared values above around 0.25.)

…results suggest that capabilities have been important missing variables in that literature (further corroborated by large reductions in AIC and BIC).

…relationship between life satisfaction and capabilities is likely to be highly endogenous (reverse causality)

Soft Skills

UK USAI can strike up a conversation with most new people I meet 6.45 6.84

I can diffuse a difficult situation 6.25 6.73I can provide leadership in a group 6.26 7.01

I can take guidance from a group-leader 7.15 7.67

I can negotiate effectively 6.67 7.15I can see things from other people’s point of view 7.58 7.96I can plan for the future 6.64 7.27I can keep to deadlines 7.30 7.77I know what I like 7.97 8.42

I know my own strengths and weaknesses 7.78 8.21I have a clear idea of how I want to spend the next 5 years 6.10 6.98

Table A2: Soft skills - Means

1A ARGENTINA 2007 LIFE SATISFACTION AFO CAPABILITIES Coef Signif Sign Correct

Health Does health limit daily activities compared to age group? 0.166 0.696Have you recently lost much sleep over worry? -0.16 -1.947 YESHave you recently felt constantly under strain? -1.66 -1.408 YES

PoliticalI am free to participate in political activities that affect my life if I want to

0.122 1.463 YES

Religion I am free to practice my religion as I want to 0.121 0.83 YES

Imagination/Thought

My idea of a good life is based on my own judgement0.252 2.513 YES

I have a clear plan of how I would like my life to be 0.025 0.239 YES

Emotional At present, how easy or difficult do you find it to enjoy 0.135 1.427 YES

the love care and support of your immediate family?Have you recently been able to enjoy your normal day to day activities? 0.013 0.136 YES

Do you tend to find it easy or difficult to imagine the situation of other people (ie to put yourself in others's shoes)

0.369 4.118 YES

Safety Please indicate how safe you feel walking alone in the area near your home after dark?

-0.01 -0.157

Please indicate how vulnerable you feel to domestic violence in the future

-0.05 -0.51

BUT SAFETY DURING DAY IS SIGNIFICANT AT CLOSE TO 5%

1B

ARGENTINA 2007 LIFE SATISFACTION = f (CAPABILITIES)coef signif Sign correct

Environ- ment

I appreciate and value plants animals and the world of nature

0.419 1.027 YES

Social Relations

How difficult do you find it to make friendships which last with people outside work

-0.25 -1.978

Outside of work, have you recently felt that you were playing a useful part in things?

0.089 0.585 YES

Have you recently been thinking of yourself as a worthless person? -0.61 -2.811 ?YES

I respect value and appreciate other people -0.36 -1.318Do you normally have at least one week's (seven days) annual holiday away from home? 0.334 1.5 YES

HousingIs your current accommodation adequate or inadequate for your current needs?

-0.55 -1.575

WorkWhile seeking work in the future, do you think is it is likely you will be discriminated against because of your race? -0.45 -2.055 YES

Health and Deprivation

Data

Does health limit your daily activities for your age All capabilities, life satisfaction and socio-economic

covariates

Analysis (latent class) Can we identify a group deprived on multiple dimensions?

What are capability classes related to?

POVERTY CLASSES AND THEIR SOCIO-DEMOGRAPHIC PROFILES

Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6

cluster size 23.7% 20.79% 19.05% 18.30% 10.13% 8.02%

Health Status 78.49% 82.96% 85.74% 61.45% 67.95% 47.01%

Household Inc 3.19 3.31 3.33 2.93 2.86 2.32

Pagreeable 4.73 4.88 5.50 4.93 5.23 4.41

Pconscientious 5.12 5.53 5.87 4.9 5.42 4.7

Popen 4.86 4.58 5.36 4.60 5.55 5.22

Pstable 4.47 4.87 5.32 3.61 4.70 3.41

Pextravert 4.09 4.07 4.84 3.53 4.14 3.51

Age 42.19 46.17 50.63 39.65 47.14 38.14

Mmale 59.73% 54.22% 45.55% 40.73% 10.64% 38.41%

mrmidwls 25.05% 29.76% 20.58% 18.30% 18.99% 13.47%

mrnorth 25.15% 28.93% 28.50% 24.78% 32.82% 38.71%

mrscot 10.25% 8.05% 10.64% 12.77% 7.02% 3.45%

mrsouth 16.61% 21.57% 27.10% 24.48% 13.09% 29.58%

Table 6b Wald Statistics for Health Status and Other Predictors of Class Membership in a Six Latent Class Model

Covariate Model Diagnostic Statistics

Health Status

51.97, 5.50e-10

31.5533, 7.30e-06

42.5177, 4.60e-08

25.6563, 0.0001

30.7661, 1.00e-05

Household Income

31.0012, 9.30e-06

21.9757, 0.00053

26.8417, 6.10e-05

12.0814, 0.034

20.9303, 0.00083

Controls for Age

No Yes

Personality: pagree pconsc popen pstable pxtravt

29.036, 2.3e- 05 24.1576, 0.0002 55.0846, .3e-10 49.8809, 1.50e-

09 19.8605, 0.0013

29.3056, 2.00e-

05 21.8305, 0.00056 60.14, 1.10e-11 50.2556, 1.20e-

09 24.708, 0.00016

Controls for Regions

No Yes

Notes Cell entries indicate the value of the Wald statistic and its associated p value respectively. Controls for age comprise age and its square. Coefficients for all models in Table 3 are available on request.

Violent Crime, Gender Inequalities and Life Satisfaction (Anand and Santos 2007, Santos 2013)

Data Past Experience/Future vulnerability to domestic, sexual and other forms of assault Current experience of Safety in local area during day and night

Findings1. Violence in general has a negative impact on life satisfaction whether you use self

report or local area reports

2. Self-reported vulnerability to future assault drives out past experience of violence in happiness equations

3. Some evidence that higher relative earning females are more at risk of domestic violence

4. Happiness based estimates of costs of violence as two times higher

Housing and Minorities (Anand Coates and Norris 2013)

Issue Irish Travellers

Housing and Minorities (Anand Coates and Norris 2013)

Issue Irish Travellers

Findings – A Problem of Housing?

1. Health Problems

2. Unemployment

3. Education

Adds to a vicious circle of disavantage

Some Current Work:

Wellbeing Over the Life Span

11 Functionings Depend on Resources Including Particularly Gender Health and Education

Happiness Depends on a Variety of Activities with Interneting Being Positive for Males and Negative for Females

4 Capabilities – Women adapt and Men don’t?

Would like to more often but feel for whatever reason that you cannot

WOMEN MEN

Capabilities and Welfare over the Lifespan- Very Young Children

Mother and Child module GSOEP Birth and 2years Data for all three equations:

f1=f(parenting regime, household affluence, local environment)

u2-u0=g(f1…f9)C=h(f1…f9)

Capabilities and Welfare over the Lifespan- Very Young Children

Data for all three equations:

Functionings Sing Singing children’s songs with or to the child Walk Talking walks outdoors Paint Painting or doing arts and crafts Read Reading or telling stories Look Looking at picture books Play Going to the playground Visit Visiting other families with children Shop Going shopping with the child Watch Watching television or videos with the

child

Capabilities and Welfare over the Lifespan- Very Young Children

Data for all three equations:CapabilitiesTalking, Everyday Skills, Movement, Social Skills Talking t1 Understands brief instructions such as ‘go get your shoes’ t2 Forms sentences with at least two words t3 Speaks in full sentences (with four or more words) t4 Listens attentively to a story for five minutes or longer t5 Passes on simple message such as dinner is ready Eskills e1 Uses a spoon to eat, without assistance and without dripping e2 Blows his/her nose without assistance e3 Uses the toilet to do ‘number two’ e4 Puts on pants and underpants the right way around e5 Brushes his/her teeth without assistance

f1=f(parenting regime, household affluence, local environment)u2-u0=g(f1…f9)C=h(f1…f9)

Child Happiness

MODEL 1 MODEL 3 MODEL 5

PAINTING 0.195* 0.049 0.047

READING 0.280* 0.369** 0.350**

SHOPPING 0.204** 0.212** 0.206*

TV -0.188* -0.171 -0.152SINGING, WALKING, PICTURE BOOKS, PLAYGROUND, VISITING N.S N.S N.S

MALE -0.208** -0.225**

DAYS IN HOSP -0.012*** -0.011***

MOTHER MIGRANT 0.445** 0.418**

EAST GERMANY 0.285** 0.269*

MOTHER HEALTH 0.142** 0.136**

GRANDPARENT HOUR

0.013* 0.012*

DAYCARE HOUR -0.008* -0.007*

MOTHER HAPPINESS

0.087** 0.088* FIX EFF

YEAR DUMMIES YES YES YES

AIC 984.82 866.18 853.86

LINK TEST PASS PASS PASSINCOME, AGE, MOTHER AGE/EDUC/ WORK/HEALTH, SINGLE PARENT, SIBS, TV DISALLOWED

N.S N.S

OBSERVATIONS 814 753 745

Child Development

Qτ (Talking) Qλ (Life) Qμ (Motor) Qσ (Social)

SINGING 0.262** -0.040 0.200** 0.193*

WALKING -0.035 0.002 -0.072*? -0.159

PAINTING 0.009 0.114 0.395*** 0.031

READING 0.544*** 0.069 0.015 0.091

PICTURE BOOKS

0.171 0.060 0.045 0.064

PLAYGROUND -0.105 0.149 -0.025 0.005

VISITING 0.212* 0.189** 0.130 0.357***

SHOPPING 0.077 0.175** -0.032 0.004

FULL CONTROLS

AS BEFORE

AIC 1658.94 2463.50 2041.98 1833.07

Link Pass Pass Pass Pass

Observations 741 741 737 743

Child Development

Qτ (Talking) Qλ (Life) Qμ (Motor) Qσ (Social)

SINGING 0.262** -0.040 0.200** 0.193*

WALKING -0.035 0.002 -0.072*? -0.159

PAINTING 0.009 0.114 0.395*** 0.031

READING 0.544*** 0.069 0.015 0.091

PICTURE BOOKS

0.171 0.060 0.045 0.064

PLAYGROUND -0.105 0.149 -0.025 0.005

VISITING 0.212* 0.189** 0.130 0.357***

SHOPPING 0.077 0.175** -0.032 0.004

HH Income 0.000 -0.000* 0.000 0.000**

Mother Age 0.001 -0.026*** -0.025*** -0.009

Mother Educ .065*** 0.003 0.025 0.013

Mother Not Working

-0.114 -0.204** -0.119 -0.206**

Mother Happy 0.057* 0.053** 0.033 0.071**

Mother Migrant -0.082 -0.157 -0.070 -0.030

Index or Dashboard?

Indexes capture the imagination and measurement is expressive

Dashboards carry information needed for understanding drivers

Wellbeing across the age range involves issues that are partly incommensurable

And…

Measurement does not imply government intervention

The Capabilities Measurement Project Some Concluding Observations

Wellbeing comprises many very different dimensions AND it is possible to develop direct monitors of aspects of wellbeing

Sen’s approach to welfare economics can be operationalised ACROSS the LIFE COURSE

Countries (FRA, UK, GER), international organisations (OECD EU) and local governments are adopting the multi-dimensional measurement approach (USA interested in time use and subjective indicators) TICK!

Next steps – currently there is a search for policy applications but in some areas measurement is reflecting policy eg: Labour, Education, Health, Environment, Inclusion and Equity including Tax

THANK YOU!