Variables selection for quality of life evaluation in the European Union

Abstract

In 2008 Commission on the Measurement of Economic Performance and Social Progress introduced eight dimensions characterizing the economic performance as well as social well-being without proposing concrete list of variables. The aim of the article is therefore to propose a set of indicators for overall quality of life evaluation in the European Union in accordance to the dimensions introduced by the Commission. Part of the main objective is to propose a methodological tool for selection of indicators reflecting the needs of evaluating quality of life in the European Union. At the beginning a set of 114 variables was completed as a result of the findings listed by the Commission and based on empirical literature. The primary data set was reduced in two consecutive steps. The first step aims to reduce the correlation among the variables. As a result of the second steps, variables reflecting the different levels among consistent groups of states were selected. Therefore, the methodical approach in the second step was based on nonparametric procedures (tests) used to identify variables that are of significantly different levels in clusters identified by cluster analysis. As a result set of 52 variables for quality of life evaluation drawn from 4 different data sources was introduced.

Keywords

• economic performance
• well-being
• quality of life
• correlation analysis
• cluster analysis
• nonparametric procedures