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In statistics, a proxy variable is something that is probably not in itself of any great interest, but from which a variable of interest can be obtained. In order for this to be the case, the proxy variable must have a close correlation with the inferred value.
Examples
Per-capita GDP is often used as a proxy for measures of standard of living or quality of life.
When performing social collections, the gender of the respondent is usually of interest. Gender, however, is a complex thing involving a person's attitudes and social relationships. Most general collections, therefore, collect data on the respondent's sex and age, and that is used as a proxy for gender. In most general collections, the proportion of transexual and transgendered individuals is low, making the correlation reasonably good.
Likewise, country of origin or birthplace might be used as a proxy for race.
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