Development of an Index in Social Science: A Systematic Literature Review

In the social sciences, indices are vital tools for summarizing and interpreting complex social phenomena by aggregating various indicators into a composite measure. This systematic literature review explores the methodologies employed in developing such indices, emphasizing the challenges of operationalizing abstract social concepts like well-being and inequality. The review identifies common practices in selecting and weighting indicators, with methodologies ranging from simple equal weighting to advanced statistical techniques like Principal Component Analysis (PCA) and the Analytic Hierarchy Process (AHP). Despite the widespread use of these indices, academic literature on their development remains sparse, with much of the existing work carried out by agencies rather than academic researchers. This review fills this gap by analyzing diverse studies across different social science domains, offering insights into best practices for future research. The findings underscore the importance of methodological rigor in ensuring the validity and reliability of indices, which are increasingly relied upon to inform policy and guide social interventions.