The name is absent

Defense                     Difficulty

n.a.                            Social deterioration

The “converted contribution” of Security to the functioning PPH is then:

Security * Defense / Difficulty / Social deterioration                     (6)

Occupation

Occupation is very important for human well-being. Unemployment, as pointed out by Sen
(1997:160-161), produces penalties for individuals other then low income, such as: loss of
freedom and social exclusion, psychological harm, ill health and mortality, loss of human
relation and family life. Traditionally the employment indicators are constituent (i.e. output) of
well-being. In the present exercise the occupational level has very extensive extra-income
meanings, thus it can be considered a determinant of well-being. The indicator used is the 15-64
employment rate, year 2001 (source: Istat, Indagine sulla forza di lavoro³⁰). The related
conversion factors are the following.

• Family with PC (family III): number of families owning a PC, year 2000 (source:
ASRL, table 57.01.09). This indicator favors Occupation.

• Firm birth-rate (family III): net firm birth-rate, year 2001 (source: Istat, Indicatori
regionali per la valutazione delle politiche di sviluppo, table IV.20). It represents the
vitality of the business system, thus favoring the conversion of Occupation.

• Investment (family III): net fixed investment on GDP, year 1999 (source: Istat,
Indicatori regionali per la valutazione delle politiche di sviluppo, table IV.11).
Investments, in general, are supposed to increase the possibility of employment, so
this indicator is a multiplier of Occupation.

• Non repeating students (family I): percentage of non-repeating students, year 1998-
99 (source: Istat, Indagine scuola secondaria 2002). This personal conversion factor
testifies the ability of individuals and thus is supposed to favor the possibility of
employment.

• R&D (family III): research and development on GDP, year 1999 (source: Istat,
Indicatori regionali per la valutazione delle politiche di sviluppo, table III.12). Like
the previous conversion factor, R&D is supposed to increase Occupation.

• Social deterioration (family III): percentage of people over 14 perceiving social
deterioration (source: ASRL, table 57.06.03). It hampers the conversion of
Occupation.

Table 5 - Conversion factors for Occupation

The “converted contribution” of Occupation to the functioning PPH is then:
Occupation * Family with PC * Firm birth-rate * Investment *

³⁰ Internet: http://www.istat.it/Anumital/Astatset/lav.htm

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