Wellbeing theory

How and why the economy should change

The Wellbeing Dashboard stems from the theory of wellbeing economics and a corresponding conceptual framework from the book ‘Wellbeing Economics: How and Why Economics Must Change’ by Dr Nicky Pouw. This framework forms the logic of the Index. It puts human well-being at the centre and recognises the intertwining of objective and subjective values (Pouw, 2020). 

In our standard economic model, growth does not apply to everyone. Large parts of society experience structural barriers to the formal economy. This way, many workers in essential services struggle to pay the basic costs of living (housing, healthcare, education, healthy food). Other households feel increasingly ‘squeezed’ and fear losing their achieved wellbeing. As more groups experience greater losses of opportunities and economic security, there is higher risk of unrest, conflicts, weakened social trust and cohesion, exclusion and depression. At the same time, people find support in informal activities, social contacts and local community initiatives.

Policy aimed at wellbeing needs – and at representing groups that escape attention due to their marginality in the formal system – requires a broader, multidimensional perspective on the economy. Economic growth then becomes merely a means – wellbeing is multidimensional, encompassing material, relational and subjective domains.

For a policy that works form a multidimensional perspective and focuses on citizens’ wellbeing in the long term, a broad range of meaningful and quantifiable data and measurements is essential. As Nicky Pouw describes in her book, official statistics and formal economic indicators still provide insufficient information and context. In particular, reports on the basic needs and priorities of low-income households and marginalized groups are lacking.

Academic research

Read more about our research in the reports (Dutch) and master’s theses (English).

Do you also conduct this kind of research? Our Learning Community (English) might be of interest to you.