# 6.5: Indexes

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An index is a composite score derived from aggregating measures of multiple constructs (called components) using a set of rules and formulas. It is different from scales in that scales also aggregate measures, but these measures measure different dimensions or the same dimension of a single construct. A well-known example of an index is the consumer price index (CPI), which is computed every month by the Bureau of Labor Statistics of the U.S. Department of Labor. The CPI is a measure of how much consumers have to pay for goods and services in general, and is divided into eight major categories (food and beverages, housing, apparel, transportation, healthcare, recreation, education and communication, and “other goods and services”), which are further subdivided into more than 200 smaller items. Each month, government employees call all over the country to get the current prices of more than 80,000 items. Using a complicated weighting scheme that takes into account the location and probability of purchase of each item, these prices are combined by analysts, which are then combined into an overall index score using a series of formulas and rules.

Another example of index is socio-economic status (SES), also called the Duncan socioeconomic index (SEI). This index is a combination of three constructs: income, education, and occupation. Income is measured in dollars, education in years or degrees achieved, and occupation is classified into categories or levels by status. These very different measures are combined to create an overall SES index score, using a weighted combination of “occupational education” (percentage of people in that occupation who had one or more year of college education) and “occupational income” (percentage of people in that occupation who earned more than a specific annual income). However, SES index measurement has generated a lot of controversy and disagreement among researchers.

The process of creating an index is similar to that of a scale. First, conceptualize (define) the index and its constituent components. Though this appears simple, there may be a lot of disagreement among judges on what components (constructs) should be included or excluded from an index. For instance, in the SES index, isn’t income correlated with education and occupation, and if so, should we include one component only or all three components? Reviewing the literature, using theories, and/or interviewing experts or key stakeholders may help resolve this issue. Second, operationalize and measure each component. For instance, how will you categorize occupations, particularly since some occupations may have changed with time (e.g., there were no Web developers before the Internet). Third, create a rule or formula for calculating the index score. Again, this process may involve a lot of subjectivity. Lastly, validate the index score using existing or new data.

Though indexes and scales yield a single numerical score or value representing a construct of interest, they are different in many ways. First, indexes often comprise of components that are very different from each other (e.g., income, education, and occupation in the SES index) and are measured in different ways. However, scales typically involve a set of similar items that use the same rating scale (such as a five-point Likert scale). Second, indexes often combine objectively measurable values such as prices or income, while scales are designed to assess subjective or judgmental constructs such as attitude, prejudice, or selfesteem. Some argue that the sophistication of the scaling methodology makes scales different from indexes, while others suggest that indexing methodology can be equally sophisticated. Nevertheless, indexes and scales are both essential tools in social science research.

This page titled 6.5: Indexes is shared under a CC BY-NC-SA license and was authored, remixed, and/or curated by Anol Bhattacherjee (Global Text Project) .