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Estonian Human Development Report

Estonian Human Development Report - Eesti Koostöö Kogu

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Table 6.2.2. Relationship between the general objective<br />

and subjective well-being indicators with the<br />

<strong>Human</strong> <strong>Development</strong> Index<br />

Figure 6.2.6. Relationship between general objective<br />

and subjective indicators for well-being<br />

Subjective perception of well-being<br />

Objective indicators<br />

Wealth<br />

<strong>Human</strong> capital<br />

2,00000<br />

1.00000<br />

.00000<br />

-1.00000<br />

Romania<br />

Russia<br />

0.944<br />

0.895<br />

ESTONIA<br />

Slovakia<br />

Poland<br />

Latvia<br />

Slovenia<br />

Subjective indicators<br />

Satisfaction with the economic<br />

situation<br />

Satisfaction with health and<br />

education<br />

Denmark<br />

Finland<br />

Switzerland<br />

Norway<br />

Sweden<br />

The Netherlands<br />

Belgium<br />

Ireland<br />

Austria<br />

Spain<br />

Portugal<br />

Hungary<br />

France<br />

Germany<br />

United Kingdom<br />

Ukraine<br />

Bulgaria<br />

-2.00000<br />

-2.000 -1.000 .000 1.000 2.000<br />

Objective well-being<br />

thing to even out income differences (indirect indicator of<br />

prevailing inequality). Hereinafter, we will use the component<br />

scores for social exclusion with the opposite sign<br />

as the cohesion indicator.<br />

To obtain the generalized indicator of the emotional<br />

component of well-being, we combined the assessments of<br />

life satisfaction and the feeling of happiness. The correlation<br />

coefficient for the indicators for the emotional aspect<br />

of well-being in 0.86 and the placement of the countries<br />

based on their indicators is shown in Figure 6.2.5.<br />

Since the cohesion indicator that we have constructed<br />

is not perfect, the picture is better than expected. Portugal,<br />

which already stood out in the previous figures with<br />

its lower positions compared to the other “old” European<br />

Union member states, also ranks below average according<br />

to both these indicators. However, we see relatively large<br />

differences in objective and subjective assessments, especially<br />

among the countries that lag behind.<br />

Finally, we combined the aforementioned indicators<br />

for the various aspects of well-being into general objective<br />

and subjective indicators. A general objective indicator for<br />

well-being was obtained by combining the health, human<br />

capital, government organization and cohesion aspects.<br />

To obtain a general subjective indicator for well-being, we<br />

combined the following subject components of subjective<br />

well-being into one composite indicator: the indicators for<br />

satisfaction with the economic situation, satisfaction with<br />

education and health, confidence as well as life satisfaction<br />

and a feeling of happiness. The mutual correlations of<br />

the indicators describing the general aspects of well-being<br />

were all over 0.73.<br />

Since the most popular indicator for the evaluation of<br />

a country’s developmental level is the <strong>Human</strong> <strong>Development</strong><br />

Index, we checked the correlation of the aforementioned<br />

objective and subjective indicators with this indicator<br />

(see Table 6.2.2.).<br />

Therefore, the <strong>Human</strong> <strong>Development</strong> Index also essentially<br />

reflects well-being. Based on the methodology that<br />

was constructed, it can be expected that the correlation<br />

is strong with the objective indicator, and the correlation<br />

with the indicator that reflects a subjective perception of<br />

well-being is also very strong.<br />

As a result of the cluster analysis made on the basis<br />

of the countries’ individual aspects of objective and subjective<br />

well-being, two groups of countries were differentiated.<br />

The first group included 14 countries that were<br />

better developed based on both objective and subjective<br />

well-being and 10 countries with lower levels of development<br />

(see Figure 6.2.6.). The figure shows the placement<br />

of the countries based on the general objective and subjective<br />

indicators for well-being, whereas the countries<br />

that belong to the other cluster are written in capital letters.<br />

As we can see, as a rule, the countries with lower<br />

objective well-being also have lower subjective indicators,<br />

while higher objective indicators of well-being are<br />

related to higher subjective well-being. Yet, among both<br />

groups we can see fluctuations between countries. In<br />

the cluster of countries with higher levels of well-being,<br />

based on the assessments of objective indicators, Norway<br />

is in a better position and Slovenia and Spain are in<br />

relatively worse positions. However, the subjective perception<br />

of well-being is higher in Denmark and lower<br />

in Germany. In the group of countries with lower wellbeing<br />

levels, the value of the objective indicator is highest<br />

in Portugal. However, Russia stands out for its very<br />

low level of objective well-being, but based on the subjective<br />

indicator, it lies almost in the middle of its group.<br />

Subjectively, of the people who filled out the European<br />

Social Survey questionnaire, those in Ukraine gave their<br />

well-being the lowest assessment, while those in Estonia<br />

the highest. As shown in the figure, the subjective assessment<br />

of well-being in Estonia is significantly higher than<br />

in Hungary, which has an objective indicator similar to<br />

Estonia. At the same time, Estonia’s subjective well-being<br />

level is approximately as high as in Germany, despite the<br />

great difference in the value of the general objective indicators<br />

of these two countries.<br />

It is interesting to analyze the ranking of the countries<br />

based on the differences in their subjective and objective<br />

assessments (Figure 6.2.7.). The countries above the<br />

median line in Figure 6.2.7. are the ones where the subjective<br />

perception of well-being is higher than the objective<br />

indicators. The countries below the line are the ones<br />

where satisfaction with well-being is lower than one might<br />

assume from the objective well-being indicators (let’s<br />

recall that the subjective assessment of well-being originate<br />

from the 2006 European Social Survey). The placement<br />

of the countries starts from the ones with the greatest<br />

satisfaction. Some of the results are quite surprising<br />

and hard to justify.<br />

0.901<br />

0.850<br />

Governance quality 0.907 Trust in people and institutions 0.804<br />

Absence of social<br />

exclusion<br />

General objective<br />

indicator of well-being<br />

0.829 Satisfaction and feeling of happiness 0.887<br />

General subjective indicator of wellbeing<br />

0.947<br />

0.881<br />

129 |

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