NTTS Satellite Event on multi-indicator Systems and partially ordered sets Multidimensional well-being and deprivation how to aggregate and how to synthesize complex socioeconomic phenomena? A comparison of CFA, AF and POSET approaches Christian Suter, Katia Iglesias, Tugce Beycan University of Neuchâtel, Switzerland Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Develop new synthetic measures of well-being (WB) Framework Develop new synthetic measures of well-being (WB) For the Swiss Social Report To monitor long-term social changes and WB Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Swiss Social Report Started in 2000’s Edited every four years Framework Swiss Social Report Started in 2000’s Edited every four years Broad coverage of the various life domains Based on 5 domains: 1) Production and consumption of social goods, 2) Cultural diversity, 3) Social integration and social cohesion, 4) Political participation and integration and 5) Environment and ecological sustainability Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Domain 1: Production and consumption of social goods Framework Domain 1: Production and consumption of social goods A multidimensional concept of WB: 4 dimensions Educational and occupational positioning Employment situation Financial situation Work-life balance Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Swiss Household Panel (SHP) Data Swiss Household Panel (SHP) Longitudinal survey of households and people living in Switzerland. Conducted on a yearly basis since 1999 Sub-sample: Active household members Aged between 18 and 65 years Year 2013 Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Swiss Household Panel (SHP) data Swiss Household Panel (SHP) Dim 1: Conciliation professional/private life Interference work/private activities Exhausted after work Difficult to disconnect from work Dim 2: Financial situation of household (HH) Satisfaction with financial situation Financial situation manageable Assessment of income and expenses Arrears of payments Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Swiss Household Panel (SHP) data Swiss Household Panel (SHP) Dim 3: Employment situation Job security Risk of unemployment Satisfaction with working conditions Dim 4: Educational and occupational position Highest level of education achieved Swiss socio-professional category of main job (CSP) Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Compare methods to synthesize information Methodologies Ordinal data In a top-down approach Compare methods to synthesize information Confirmatory factor analysis (CFA) Alkire & Foster counting approach (AF) Posetic approach (POSET) Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

CFA: Test the adequacy data-theoretical framework Methodologies CFA: Test the adequacy data-theoretical framework Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Methodologies AF: Compute the number of deprived people in society from multidimensional perspective Dual cut-off Determine ‘deprived or not-deprived’ within each dimension Identify ‘deprived’ across dimensions 2 scores possible: Deprived Not deprived Difficult to disconnect from work 0, 1-4, 6-10 Assessment of income and expenses save money, use what they earn, eat in its assess and savings or get into debts Job security secure, almost secure, quite insecure, insecure Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

POSET: based on the dual cutoff of AF No aggregation Methodologies POSET: based on the dual cutoff of AF No aggregation Each single profile = combination of WB scores Difficult to disconnect from work 3: 0 2: 1-4 1: 6-10 Assessment of income and expenses 3: save money 2: use what they earn 1: eat in its assess and savings or get into debts Job security 3: secure or almost secure 2: quite insecure 1: insecure 333 133 332 331 123 223 323 233 132 213 222 313 312 322 232 311 122 231 221 321 112 113 212 111 211 131 121 Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

POSET: based on the dual cutoff of AF No aggregation Methodologies POSET: based on the dual cutoff of AF No aggregation Each single profile = combination of WB scores Relationship between two objects Can be ordered 333/233/133/123… Incomparable objects 123 and 332 Score of degree of deprivation ranges between 0 and 1 333 133 332 331 123 223 323 233 132 213 222 313 312 322 232 311 122 231 221 321 112 113 212 111 211 131 121 Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

AF: same first cutoff 12 items: 4 items: 2/4 4/12 (model 0, 4/12) Models Tested AF: same first cutoff 12 items: 4/12 (model 0, 4/12) 6/12 (model 0, 6/12) 4 items: 2/4 Model 1: 1) Interference work/private activities, 2) Job security, 3) Assessment of income and expenses, 4) Educational level Model 2: 1) Difficult to disconnect from work, 2) Risk of unemployment, 3) Satisfaction with financial situation, and 4) Occupational level Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

POSET: same first cutoff Models Tested POSET: same first cutoff 4 items: 2/4 Model 1: 1) Interference work/private activities, 2) Job security, 3) Assessment of income and expenses, and 4) Educational level Model 2: 1) Difficult to disconnect from work, 2) Risk of unemployment, 3) Satisfaction with financial situation, and 4) Occupational level Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Results: CFA Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Results: AF % of deprived persons depends on the cutoff (6/12 or 4/12) and on the number of variables (4 or 12) included in the model 12 items 4 items 6/12 4/12 Model 1 Model 2 % of deprived people 4,5% 16,6% 8,8% 13,0% Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Results: AF Same theoretical framework, same pool of variables, same first cutoff, but: Different models do not identify the same people as deprived 25% deprived in model 0 6/12 model and not deprived in the model 1 61% deprived in model model 1 are not identified as deprived by the model 0, 6/12 53% deprived in model 1 are not deprived in model 2 68% deprived in model 2 are not identified as deprived in model 1 Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

1 96.0% less than 0.125; 2 with 90.4% less than 0.125 Results: POSET 1 96.0% less than 0.125; 2 with 90.4% less than 0.125 as noted for the AF models, they do not identify the same people as deprived Iglesias et al., University of Neuchâtel WB: How to aggregate? 12.07.2016

Results: CFA-AF (model 1) Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

The size of the correlation depends on Results: CFA-POSET As expected, we found a high association between the different CFA and POSET deprivation degree Correlation between |0,33| and |0,58| The size of the correlation depends on Correlation between the variables of the model and the latent factor Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

POSET identifies the deprived units based on the dual cutoff of AF Results: AF-POSET POSET identifies the deprived units based on the dual cutoff of AF Expect AF and POSET to identify the same deprived persons (score=1) and that all non-deprived persons with POSET (score=0) will also be non-deprived with AF Confirmed except for one POSET profile (2/1/2/2) identified as deprived, despite the fact that it does not include multidimensional deprivation Comparing model 1 to model 2, as within AF and within POSET Do not identify the same people as deprived Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Based on the same theoretical framework and same pool of variables: Discussion Based on the same theoretical framework and same pool of variables: The different synthetic indicators correlate within and between methodologies But the individuals identified as multidimensionally deprived differ within and between methodologies It is not only a matter of difference du to methodology used, but more a question of Implicit weights: Item selection And number of item used Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Conclusion CFA: To test the consistency of the data and the theoretical framework Not a single synthetic measure AF Simple and immediately understandable High communicative power regarding dissemination Not adapted for prevention POSET Based on the AF dual cutoff, but not easily communicable Useful for prevention: identify the social groups which are at risk of multidimensional deprivation, i.e., those who are not (yet) deprived but may eventually become deprived Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Suggestion: combine the approaches 3 steps: CFA to test the consistency of the data and the theoretical framework AF by dimension: count the number of item by dimensions are deprived Depending on the user of the synthetic measure: Non academic public: AF on the number of deprivation by dimension Prevention: POSET on the number of deprivation by dimension Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017

Thank YOU FOR YOUR ATTENTION Christian Suter Multidimensional Well-Being and Deprivation: How to aggregate and how to synthesize? 17.03.2017