Research project is (co)funded by the Slovenian Research and Innovation Agency and by the Ministry of Economic Development and Technology
Project
Member of University of Ljubljana
School of Economics and BusinessCode
V5-2122Project
Conceptualization and application of an analytical model for increasing wellbeing in SloveniaPeriod
1.9.2021 - 28.2.2023Head
Polona Domadenik Muren, Ph.D.
Research activity
Social sciences/EconomicsResearch Organisation
Faculty of Computer and Information Science, UL
Abstract
DEFINING THE PROBLEM. Slovenia is facing a demographic crisis, with declining working population and growing dependent population. The problem is so severe that all scenarios, without action, have almost inconceivable negative consequences for material and non-material well-being over the next 30 years. The Action Plan for Higher Productivity Growth, based on an in-depth analysis, sets the necessary actions to maximize productivity gains. Through empirical and institutional analysis, it has highlighted the differences between Slovenia, Austria and Germany in terms of the social order and its functioning in all areas identified in the literature as crucial for productivity. The project will build on the Action Plan to revise the proposed policies and measures, to include elements that promote labor activity and have impact on non-material well-being, to identify factors and measure (synthetic indicator) that could be used to identify differences between Slovenia, Austria and Germany.
There are four different ways to measuring social well-being in the literature. The first approach replaces GDP with another indicator such as the Sustainable Economic Well-being Index or the Real Progress Indicator. The second approach uses several alternative indicators with dimensions in the economic, social and environmental fields. A third approach combines different indicators into a single composite indicator (a well-being indicator), where the key methodological issue is the definition of the weights in the synthetic indicator. The last approach is based on surveys of individuals on their well-being.
The OBJECTIVES contain the following CONTENT AIMS in more detail:
i. Identify and review key factors behind productivity and non-material well-being gap in Slovenia,
ii. Identify a limited number of measures with the greatest impact on reducing the productivity gap and raising non-material well-being in Slovenia relative to Austria and Germany,
iii. rank the measures according to their impact on productivity growth in Slovenia,
iv. adapting and complementing the measures in terms of achieving higher non-material well-being,
v. adapting and upgrading the existing Action Plan in the light of the "anti-corona" measures to mitigate the negative effects of the health crisis on productivity growth in Slovenia.
For the purpose of this analysis, we will develop an appropriate METHODOLOGY, which is also the project ́s aim:
DEFINING THE PROBLEM. Slovenia is facing a demographic crisis, with declining working population and growing dependent population. The problem is so severe that all scenarios, without action, have almost inconceivable negative consequences for material and non-material well-being over the next 30 years. The Action Plan for Higher Productivity Growth, based on an in-depth analysis, sets the necessary actions to maximize productivity gains. Through empirical and institutional analysis, it has highlighted the differences between Slovenia, Austria and Germany in terms of the social order and its functioning in all areas identified in the literature as crucial for productivity. The project will build on the Action Plan to revise the proposed policies and measures, to include elements that promote labor activity and have impact on non-material well-being, to identify factors and measure (synthetic indicator) that could be used to identify differences between Slovenia, Austria and Germany.
There are four different ways to measuring social well-being in the literature. The first approach replaces GDP with another indicator such as the Sustainable Economic Well-being Index or the Real Progress Indicator. The second approach uses several alternative indicators with dimensions in the economic, social and environmental fields. A third approach combines different indicators into a single composite indicator (a well-being indicator), where the key methodological issue is the definition of the weights in the synthetic indicator. The last approach is based on surveys of individuals on their well-being.
The OBJECTIVES contain the following CONTENT AIMS in more detail:
i. Identify and review key factors behind productivity and non-material well-being gap in Slovenia,
ii. Identify a limited number of measures with the greatest impact on reducing the productivity gap and raising non-material well-being in Slovenia relative to Austria and Germany,
iii. rank the measures according to their impact on productivity growth in Slovenia,
iv. adapting and complementing the measures in terms of achieving higher non-material well-being,
v. adapting and upgrading the existing Action Plan in the light of the "anti-corona" measures to mitigate the negative effects of the health crisis on productivity growth in Slovenia.
DEFINING THE PROBLEM. Slovenia is facing a demographic crisis, with declining working population and growing dependent population. The problem is so severe that all scenarios, without action, have almost inconceivable negative consequences for material and non-material well-being over the next 30 years. The Action Plan for Higher Productivity Growth, based on an in-depth analysis, sets the necessary actions to maximize productivity gains. Through empirical and institutional analysis, it has highlighted the differences between Slovenia, Austria and Germany in terms of the social order and its functioning in all areas identified in the literature as crucial for productivity. The project will build on the Action Plan to revise the proposed policies and measures, to include elements that promote labor activity and have impact on non-material well-being, to identify factors and measure (synthetic indicator) that could be used to identify differences between Slovenia, Austria and Germany.
There are four different ways to measuring social well-being in the literature. The first approach replaces GDP with another indicator such as the Sustainable Economic Well-being Index or the Real Progress Indicator. The second approach uses several alternative indicators with dimensions in the economic, social and environmental fields. A third approach combines different indicators into a single composite indicator (a well-being indicator), where the key methodological issue is the definition of the weights in the synthetic indicator. The last approach is based on surveys of individuals on their well-being.
The OBJECTIVES contain the following CONTENT AIMS in more detail:
i. Identify and review key factors behind productivity and non-material well-being gap in Slovenia,
ii. Identify a limited number of measures with the greatest impact on reducing the productivity gap and raising non-material well-being in Slovenia relative to Austria and Germany,
iii. rank the measures according to their impact on productivity growth in Slovenia,
iv. adapting and complementing the measures in terms of achieving higher non-material well-being,
v. adapting and upgrading the existing Action Plan in the light of the "anti-corona" measures to mitigate the negative effects of the health crisis on productivity growth in Slovenia.
For the purpose of this analysis, we will develop an appropriate METHODOLOGY, which is also the projects aim:
1) identification and use of relevant secondary and primary databases (SURS, Eurostat, OECD, European Values Survey, IMD,etc),
2) development of own methodological tool using mixed methods,
3) data analysis using appropriate statistical methods and advanced data analysis techniques.
The FINAL RESULTS of PROJECT will include:
1) a comprehensive comparative analysis of the situation in terms of the different components affecting productivity, intangible well-being and labor force participation.
2) An appropriate model for the measurement of non-material well-being will be developed, which will include those important components of well-being that, according to surveys, Slovenians attach the most importance to.
3) Comprehensive data-driven recommendations will be prepared for the design of public policy measures in different areas.
CONTRIBUTIONS TO SCIENCE DEVELOPEMENT are as follows:
1) A comprehensive theoretical analysis of determinants of non-material and material well-being, based on statistical analysis and machine learning methods, and development of a comprehensive indicator for measuring well-being;
2) Preparation of expert basis for data-driven design of measures and policies.
3) Rising understanding of importance of entrepreneurial investment in factors that affect material well-being.
CONTRIBUTIONS TO SOCIAL DEVELOPMENT are mainly reflected in actions and policies that enhance social well-being will adequately address the challenges of society
Researchers
Dušan Mramor, PhD
Tjaša Redek, PhD
Aljoša Valentinčič, PhD
Matjaž Koman, PhD
Jože Sambt, PhD
Blaž Zupan, PhD
Janez Demšar, PhD
The phases of the project and their realization
The phases of the project are as follows:
1. Idintification of key factors of productivity gap and work activity and dimensions of intangible well-being in Slovenia
Objective and challenges: to gain a comprehensive insight into the state of art of material and intangible well-being in Slovenia based on comparative economic analysis. The project addresses the challenge of how to comprehensively cover the measurement of material and intangible well-being in an individual society.
Method of work: analysis of theoretical and empirical contributions in the literature, comparative analysis of key factors of productivity gap.
Duration: 6 months.
2. Data preparation, statistical analysis and machine learning.
Objective and challenges: Based on the analysis of the values of Slovenes and other dimensions of material and intangible well-being, the aim of this phase is to prepare an indicator of well-being with weights that reflect value preferences.
Method of work: Machine learning, econometric analysis of the impact of measures on increasing work activity, analysis of microdata on the values of Slovenes (EVS, EU-SILC), focus groups, in-depth interviews.
Duration: 6 months.
3. Identification of measures and ranking according to their effect on productivity growth in Slovenia
Objective and challenges: Based on the comparative analysis carried out in the Action Plan for Productivity Growth (2020), we identified 15 areas and three key measures or orientations in the field. As part of the proposed package, we will amend the action plan, determine the implementation phase and, in the case of a significant change in the situation, propose a change or upgrade of the measure or direction. We will first comparatively evaluate the position of Slovenia, Austria and Germany and propose measures and guidelines that will lead to higher intangible prosperity in Slovenia. Similar to the Action Plan for Productivity Growth (2020), we will propose three key measures or orientations according to the identified areas.
Method of work: analysis of the implementation of individual measures and orientations, implementation of focus groups.
Duration: 6 months.
4. Dissemination of findings
Objective and challenges: Dissemination of findings will take place throughout the duration of the project in the form of participation of project team members in various discussions, round tables, etc. The aim of this phase is to prepare appropriate communication material in the form of short policy papers, delivering an online seminar for companies and a seminar for policy makers. Finally, we plan to hold a conference to present the findings to all project stakeholders.
Method of work: preparation of papers, round tables, seminars and conferences.
Duration: 6 months.
