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This paper reviews the development of the field of social indicators from its origins in the 1960s to the present. Three classes of social indicators are identified: normative welfare indicators, which focus on direct measures of welfare and are subject to the interpretation that if they change in the right direction while other things remain equal things have gotten better or people are better off; satisfaction indicators, which measure psychological satisfaction, happiness, and life fulfillment by using survey research instruments that ascertain the subjective reality in which people live; and the most inclusive category, descriptive social indicators, which are indexes of social conditions (i.e. contexts of human existence) and changes therein for various segments of a population. Correspondingly, two conceptions of how social indicators are to be interpreted and used are discussed: One, which emphasizes the policy-analytic uses of social indicators, presumes that the proper relationship of social indicators to social policy occurs at the level of operating or managing organizations; the other, which emphasizes the uses of social indicators in social reporting, presumes that the proper role of social indicators is public enlightenment and the formation of general as opposed to operational policy. Three sociological contributions to the descriptive social indicators/enlightenment approach are described: the development of replication and longitudinal studies, the production of analytical studies of social change and social reports, and the creation of formal models for the analysis of data on social change. Current research problems that are identified include the development of social accounting systems, the construction of indicators of institutional values and structures, and the production of improved social forecasts and forecasting techniques. It is concluded that, while issues of public concern may change from time to time, the critical public and private sectors continue to need statistical information about current social conditions and trends.

This article was prepared by Helen Owens of the Institute research staff.Until the mid‐1960's it was generally accepted that gross national product provided not only a measure of economic performance but also a useful overall indicator of some aspects of human welfare. The limitations of GNP with respect to most non‐market phenomena were well recognised but the implicit assumption was made that the unmeasured aspects of welfare were positively related to changes in income as recorded in national accounts statistics. However, in the last decade or so, growing recognition of social costs and problems asociated with material advancement has led economists and other social scientists to look for new approaches to the measurement of social 'progress'.1

The goal here is to introduce some of the basic ideas & issues related to social indicators research. Definitions of `social indicator', 'social report' & 'social accounting system' are proposed, & their structural features are explained. This is followed by an explanation of the usage of the phrase 'quality of life' & its relation to the writer's view of the nature of values. A number of possible uses & abuses of social indicators & reports are introduced. None of this material breaks new ground, but perhaps it will be useful as a jumping off point for further research. AA.

Relationships among changes in productivity, economic output, & aspects of societal welfare measured by social indicators are discussed. It is suggested that the usual measures of productivity (eg, labor productivity) do not adequately measure real output, & that nonfinancial indicators (eg, qualitative changes in goods & services) are not included in the monetary value of output. Productivity is also understated during inflationary periods, & official accounts do not include data from the underground economy. Still, these types of unrecorded productivity do provide work, goods, & services that will appear in social indicators. A diagram is provided showing the effects of quantity (ie, labor, capital) & quality (ie, education, technology) inputs on various social indicators, eg, housing, social security, health, education, income, leisure. 4 Tables, 2 Charts. Modified HA.