Composite Measure of Wellbeing

The Composite Measure of Wellbeing is a composite measure constructed from 9 variables from the Clio-Infra project presented in the OECD's 'How was life'-report (2014). It uses two different methods to measure well-being: (i) assigning equal weights to all 9 variables, and (ii) using a latent variable model. The latent variable model approach has benefits in terms of dealing with missing data and accounting for the uncertainty this causes in the composite indicator, but this comes at the expense of transparency. Developed by Rijpma and the CLIO-Infra team.