Multidimensional Wellbeing: An Index of Quality of Life in a Developing Economy

Abstract

Human wellbeing indices can shed light on a society's quality of life. This study ranks human wellbeing by employing objective and subjective indicators of quality of life for hundred districts of Pakistan. Households level data used for the analysis includes 'The Pakistan Social and Living Standards Measurement Survey' for the year 2006-2007. The human wellbeing is examined in four domains: education, health, living conditions and economic situation. Principal component analysis is employed for indexing human wellbeing, rated in five quintiles are generated. The paper demonstrates the importance of education, health and living condition domains in determining the human wellbeing. Objective indicators of education i.e., adult literacy rate, net primary enrolment and gender equality in education are important variables in ranking of districts. Economic status of the households and communities are important variables in subjective perception of wellbeing. The results indicate substantial variation in human wellbeing among districts of Pakistan It may be considered that disparity in objective condition and in subjective perceptions are adequately depicting wellbeing differences. Finally, it is argued that objective indicators and subjective wellbeing measures are needed in unison to understand human quality of life and to make informed policy decisions.