Factors of Quality of Life in a Group of Selected European Union and OECD Countries

This work focuses on the evaluation of the factors of quality of life in a sample of 26 countries. Quality of life is a complex, multidimensional concept, which includes various social, cultural, economic, political, demographic and environmental aspects. Regarding this, principal component analysis and regression analysis were chosen as relevant methods to analyse relationships among twenty-five variables related to quality of life, and their rela-tionships with three composite indices reflecting crucial aspects of quality of life, wellbeing and sustainability. These indices, applied as the response variables in the regression analysis, include the inequality-adjusted alter-native of the Human Development Index (IHDI), the Happy Planet Index (HPI), and Healthy Life Years (HLY). The IHDI represents an objective indicator of human development and wellbeing. HLY reflects quality of life in terms of health. The HPI combines the ecological efficiency with which human wellbeing is delivered, while it also includes a subjective measure of wellbeing. Since each of these indices represent different aspects of quality of life to a certain extent, some of the factors (represented by selected indicators) affected them in different ways. After applying a Lasso regression, nine of the 25 indicators – representing crucial factors of quality of life – were identified. Homicide rate (representing the factor of safety) affected all three indices in a negative way, whereas Years in education (representing the factor of education) and Life satisfaction – a subjective indicator of wellbeing representing the dimension of the same name, affected them positively. 

JEL Classification: I10, I13, I15, I18, Q01