Measurement of Capabilities: An Overview

1. Measurement of Capabilities: An Overview HDCA Tokyo September 2016 Paul Anand, Faculty of Social Sciences The Open University, Social Policy Oxford and Columbia NY (2016-7)

2. Structure Overview of the capabilities measurement project Beyond GDP and development of capability measures: measurement and analysis Briefly, Wellbeing over the life course, social resources, Health and Housing Conclusions

3. 2015 Wellbeing Over 50, Journal of Economics of Aging Development and Happiness of Two Year Olds AR Multi-Dimensional Wellbeing in US and UK for the Assessment of Progress ARG IZA Paper 2016 Health Measurement and Valuation: A Caapbility Approach to Mobility Impairment AR A General Index of Freedom ATA The Ability to Plan and Social Capital AP Wellbeing as a Wicked Problem, Jo of Happiness Studies BRA 2014 The Measurement of Progress in Terms of Life Quality: It Can Be Done, A Th OxCap-MH, Jo of Mental Health Policy and Economics, Var Operationing the capability approach for outcome measurement in mental health research SAGetal 2013 Operationalising the capability approach for outcome measurement in mental health research, Social Science and Medicine Multi-dimensional Welfare: Do Groups Vary in their Priorities and Behaviours, Fiscal Studies Housing and Quality of Life for Migrant Communities in Westerm Europe: A Capabilities Approach, Journal on Migration and Human Security • Measuring Welfare: Latent Variable Models for Happiness and Capabilities in the Presence of Unobservable Heterogeneity, Journal of Public Economics The Psychology and Behavioral Economics of Poverty, Journal of Economic Psychology 2009 Obesity as market failure: could a deliberative economy overcome the problems of paternalism? Kykos The Development of Capability Indicators, Journal of Human Development and Capabilities 2007 Violent crime, gender inequalities and wellbeing, Revue d’economie politique

4. Some prehistory • 2003 Theory paper (with Martin van Hees) • 2005 AHRC funded survey of adult capabilities (OCAP) • Social Indicators Research paper • 2009 Development of capability indicators paper • Oxford Conference leads to Jo Pub Econ special issue • 2011 OECD launch Better Life compendium… • 2016 UNDP commissions discussion on value of subjective measures for human development

5. Sum Utility Maximisation (Utilitarian Welfare Economics) What about Non-utility Claims like Rights and Responsibilities? What about Non-welfare Outcomes Like Freedoms? What about the Distribution? What Preferences Count? What Dimensions Matter? Modern Social Choice and Welfare Theory

6. Capability Approach (Sen 85 pp11-4) Activities/States = f (Resources, Abilities) Happiness = u (Activities/States) Opportunities = h (Resources, Abilities)

10. Some Early Empirical Capability Measurement Research • Human Development Index • Schokkaert and van Ootegem (1990) • Enrica Chiappero Martinetti (1994, 2000) • Laderchi (1997) • Kuklys (2005) • Andrea Brandolini (1999) “The purpose is to assess the operational content of the approach ie the empirical methods to measure functionings and capabilities…much of what one can do depends the available data….we discussed the practical difficulties of moving to capabilities and proposed to remain in the (refined) functionings space.” Source: Plenary paper given to the International Economics Association Congress, Buenos Aires

11. AHRB Project to Measure Capabilities Research Question Can we measure capabilities across a wide spectrum of human domains within the conventions applicable to national household and social surveys?

12. Framework for QuestionsThe OCAP 2005 instrument Nussbaum’s List Comprehensive Robust (similar to others) Don’t require universal claims Has normative grounding Evolving into wellbeing

13. Nussbaum’s List (2000) • Life • Bodily Health • Bodily Integrity • Senses Imagination and Thought • Emotions • Practical Reason • Affiliation • Nature • Leisure • Control over one’s Environment

14. Bodily Health • Being able to have good health, including reproductive health; to be adequately nourished; to have adequate shelter

15. 2 Bodily Health Being able to have good health, BHEALTH (Q57) Does your health in any way limit your daily activities compared to most people of your age? Yes, No. BHPS including reproductive health; BREPRODUCT (Q61) Are you able to have children? Yes, No, Don't know, Prefer not to answer If No Please indicate the reason(s) you are not able to have children. I cannot have children because of: Q62_1 My age; Q62_2 I have had a vasectomy / hysterectomy; Q62-3 Another medical condition; Q62_4 My partner being unable / unwilling; Q62_5 Another reason; Q62_6 Prefer not to answer. to be adequately nourished BNOURISH (Q59) Do you eat fresh meat, chicken or fish at least twice a week? Yes/No BHPS If No Q60 For which of the following reasons, if any, do you NOT eat fresh meat, chicken or fish at least twice a week? [Please tick all that apply] I am vegetarian/vegan, I cannot afford to, I do not like eating fresh meat, chicken or fish that often, I do not have time to prepare fresh food., Some other reason to have adequate shelter. BSHELTER (Q85) Is your current accommodation adequate or inadequate for your current needs? More than adequate, Adequate, Inadequate, Very inadequate BCANMOVE (Q86) Are you prevented from moving home for any reason? Yes, No If yes Q87 What prevents you from moving home? Lack of money/finances; The Council would be unlikely to re-house me; Family responsibilities and/or schooling; I could not move out of my current accommodation because of some other reason

16. HEALTH STATUS Does your health in any way limit your daily activities compared to most people of your age? Yes, No. BHPS

17. NOURISHMENT Do you eat fresh meat, chicken or fish at least twice a week? Yes/No BHPS with additions If No (Q60) For which of the following reasons, if any, do you NOT eat fresh meat, chicken or fish at least twice a week? [Please tick all that apply] I am vegetarian/vegan I cannot afford to I do not like eating fresh meat, chicken or fish that often I do not have time to prepare fresh food Some other reason

18. ADEQUATE SHELTER BSHELTER (Q85) Is your current accommodation adequate or inadequate for your current needs? More than adequate, Adequate, Inadequate, Very inadequate BCANMOVE (Q86) Are you prevented from moving home for any reason? Yes, No If yes (Q87) What prevents you from moving home? Lack of money/finances; The Council would be unlikely to re-house me; Family responsibilities and/or schooling; I could not move out of my current accommodation because of some other reason

19. 5 Types of Capability Indicators Type 1. Opportunities Type 2. Abilities Type 3. Constraints Type 4. Functionings + Reasons Type 5. Functionings + Universality

22. Derivation of the Wellbeing Space (Recent Work) • Personal suggestions • Examples from Household Surveys • Nussbaum’s (2000) List • Focus Group Work (Glasgow/Public Health) • Public Consultation (UK, 30,000) • Comparison with Official Approaches (OECD, EU)

23. CAPABILITY INDICATORS h. I am able to share tasks within the household fairly h. I am able to socialise with others in my family as I would wish h. I am able to make ends meet h. I am able to achieve a good work-life balance h. I am able to enjoy the kinds of personal relationships that I want h. I have good opportunities to fee valued and loved w. I am able to find work when I need to w. I am able to use my talents and skills at work w. I am able to work under a good manager at the moment w. I am always treated as an equal (and not discriminated against) by people at work w. I have good opportunities for promotion or recognition at work w. I have good opportunities to socialise at work c. I have good opportunities to take part in local social events c. I am treated by people where I live as an equal (and not discriminated against) c. I am able to practice my religious beliefs (including atheism/agnosticism) c. I am able to express my political views when I wish c. I am able to walk in my local neighbourhood safely at night e. I am able to visit parks or countryside whenever I want e. I am able to work in an environment that has little pollution from cars or other sources e. I am able to keep a pet or animals at home with ease if I so wish e. I am able to places I need without difficulty When needed I find it easy to a. Make use of banking and personal finance services a. Get my rubbish cleared away a. Get tradespeople or the landlord to help fix problems in the house a. Be treated by a doctor or nurse a. Get help from the police a. Get help from a lawyer a. Get to a range of shops

24. Daily Activities Attending an Evening Class Caring for someone ill or frail (unpaid) Community involvement Cooking DIY Drinking alcohol Exercising Housework Internet (for personal use) Internet (for paid employment) Intimate Relations Listening to music Looking after a pet Other outdoor activities Paid employment Playing a musical instrument Praying or meditating Relaxing or napping Reading for pleasure Self-care Smoking tobacco Socialising Shopping Time with children Visting a park or the countryside Visiting a cinema/concert/gallery/museum

25. Four Measures of Experience • Overall how satisfied are you with your life nowadays? • Overall how happy did you feel yesterday? • Overall how anxious did you feel yesterday? • Overall to what extent do you feel that the things you do in your life are worthwhile?

26. Social resources and non-cognitive skills

27. Using Data to Study Multi-Dimensional Deprivation

29. Deprivation and Capabilities

30. Deprivation and Capabilities

33. Capabilities and Welfare over the Lifespan- Very Young Children • Mother and Child module GSOEP • Birth and 2years • Data for all three equations: f1=f(parenting regime, household affluence, local environment) u2-u0=g(f1…f9) C=h(f1…f9)

34. Health and Disability Measurement ICECAP Coast et al (2007 and various) OxCAP-MH Simon et al (2013) Analysis satisfaction with income Kuklys (2005) opportunity to thrive Ferrer et al (2014) Valuation cost of domestic violence Santos et al (2008/2013)

35. Housing and Minorities (Anand Coates and Norris 2013) Issue • Irish Travellers Findings – A Problem of Housing? 1. Health Problems 2. Unemployment 3. Education Adds to a vicious circle of disadvantage

36. Direct Measurement of Capabilities Summary Guidelines 1. Define capabilities of interest. Theory, Policy, Consultation 2. Develop capability questions. Level of analysis – national, topic, group 3. Need data on resources, conversion factors, happiness, functionings? 4. Gather data. (Endogeneity?) 5. Analysis Distributive Univariate Multivariate Productive - Regression Models Capabilities depend on Resources and Conversion Factors Constraints in Happiness Equations Valuation Uses experience measures

37. Some Conclusions • Capability approach fully ‘workable’ across life spectrum, quantitative and qualitatively • Sen’s original three relations provide a grammar for understanding how human flourishing is produced and distributed • Capability indicators can trace multi-dimensional quality of life

38. Some Conclusions • Capability approach fully ‘workable’ across life spectrum, quantitative and qualitatively • Sen’s original three relations provide a grammar for understanding how human flourishing is produced and distributed • Capability indicators can trace multi-dimensional quality of life Thank you!