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    Developing a comprehensive multidimensional wellbeing index based on what people value: An application to a middle-income country
    (Springer Science and Business Media B.V., 2022-12-01)
    We introduce a comprehensive policy-relevant measure of multidimensional wellbeing conceptually rooted in Amartya Sen’s capability approach and applied to a middle-income country: the Multidimensional Wellbeing Index for Peru (MWI-P). We design and collect a specialized survey in Peru in late 2018, which included data on wellbeing achievements across 12 dimensions, on the value that respondents place upon each of these dimensions, and on self-perceived freedom. Then, we utilize this information to set the weighting structure and select a wellbeing sufficiency threshold for the MWI-P, which we estimate using the capability-inspired Alkire–Foster method. Our results show that only 45.9% of the sample population live above the wellbeing threshold, which involves achieving sufficiency in at least seven out of the 12 weighted dimensions of the MWI-P. Subgroup analyses reveal that rural populations, women, and older adults are at a disadvantage compared with urban populations, men, and younger adults, respectively. These subgroups’ disparities hold valid if we introduce changes in the weighting structure or in the wellbeing sufficiency threshold. We argue that the MWI-P can inspire other low- and middle-income countries to reorient post-pandemic recovery policies from a focus on economic growth to a human flourishing approach based on what people value.
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    Evaluating urban multidimensional inequalities in Peru from the capability approach
    (Springer Science and Business Media Deutschland GmbH, 2024-01-01)
    In this chapter, we evaluate multidimensional well-being disparities in urban areas in Peru, a middle-income country in one of the most unequal regions in the world: Latin America and the Caribbean. We rely on data from a specialized survey collected in this country in late 2018, which includes information on a broad set of non-monetary dimensions of human well-being. We use this data to specify, calibrate, and calculate an urban-specific measure of multidimensional well-being conceptually based on Amartya Sen’s capability approach. This measure comprises a set of 12 dimensions we operationalize using 30 indicators of well-being achievement. Our main results reveal that the proportion of women in a situation of well-being sufficiency is lower than that of men and that the capital city of Lima shows higher values of well-being sufficiency than other urban regions in the Coast, the Highlands, and the Amazonia. This pattern of disparity holds valid even if we introduce changes to the multidimensional well-being sufficiency threshold, which corresponds to the minimum number of achievements that a person should accomplish to live with an adequate level of well-being.