1. 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?

2. 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?

3. 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?

4. 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?

5. 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?

6. 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?

7. 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?

8. 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?

9. 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?

10. 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?

11. 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?

12. 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?

13. 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?

14. 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?

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

16. 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. 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?

18. 1 96.0% less than 0.125; 2 with 90.4% less than 0.125
Results: POSET
% 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?

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

20. 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?

21. 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?

22. 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?

23. 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?

24. 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?

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