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The Importance of Common Metrics for Advancing Social Science Theory and Research: A Workshop Summary
  http://www.nap.edu/catalog/13034.html

            INDICATORS                                                    47

            example, determining human capital labor skills in a given area for plant
            location or tracking students in school systems—drives how the denomina-
            tor and numerator are conceptualized and the choice of methodology.
               Turning  next  to  Warren’s  presentation,  Prewitt  reinforced  the  point
            that the policy objective also drives the use of the data set. He suggested
            that, in terms of developing common metrics, more conversation is needed
            about the differences between administrative data and survey data. Survey
            data have the characteristic of being variable rich and case poor due to cost
            restrictions. Administrative data have the opposite characteristics: they are
            case rich and variable poor. Administrative data are not organized to give
            regression analyses about individual-level behavior. By examining the infor-
            mation systems of different national governments, the differences between
            administrative data and survey data become more apparent. In Europe the
            ratio is 85:15 administrative/survey data. In the United States, the ratio is
            roughly 80:20 survey/administrative data. If the indicators used are based
            in theory, then the theory itself has to connect to a public policy purpose
            that is primarily fixed by the administrative agency collecting the data. The
            control of the data is in fact with the administrative agency that collects it.
               As an aside, Prewitt remarked that digital data will have a significant
            impact on the development of standardized measurements. The cost of the
            census in the United States is unsustainable, and this will result in a shift
            from its current reliance on survey data to increased use of administrative
            records and perhaps eventually on digital data. A digital footprint leaves
            enormous amounts of data and raises questions about what are proprietary
            data.
               Prewitt then commented on Mulgan’s presentation describing the evo-
            lution of the measurement system, based on the constant interaction be-
            tween the quality of the science and the ways in which the data are used. He
            said that Mulgan tracked effectively the movement from easily measured
            items to more abstract concepts that include subjective well-being, social re-
            silience, or social capital. This progression is reflected in policy discussions
            about the use of data and the role of the scientific community in influencing
            policy makers. It is important, he continued, to control measurement across
            the boundaries of a threshold, for example, spending more attention and
            money  on  those  “above  the  threshold”  to  obtain  more  funding.  Prewitt
            acknowledged  that  social  scientists  need  to  live  with  certain  distortions,
            but at the same time, he noted, the scientific community has to build in as
            many protections as possible so that the system cannot be gamed, as well
            as to maintain transparency.
               Prewitt  emphasized  one  of  Mulgan’s  key  points  about  the  direction
            of social science—the need to incorporate the constituencies affected into
            measurement, for example, in the creation of a new disability index. Prewitt
            lauded the Oregon benchmark program identified in Mulgan’s presentation,







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