Lessons for the index makers

Construction of composite indices is an important method for measuring multi-dimensional concepts by combining large number of indicators in a standardized way into a single index. Many indices have been developed, such as the Human development index, the OECD Better Life Index, Corruption perceptions index and others. Composite indices are a useful tool in policy analysis and public communication, because they allow simple comparison of countries and identifying trends. Nevertheless, there are challenges in constructing composite indices. Here we will point out seven issues that we deem important for the current JustJobs Index. Continue reading