How's Life: The OECD Better Life Index

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How's Life: The OECD Better Life Index

  1. 1. HOW’S LIFE?Measuring Well-Being
  2. 2. The OECD Better Life InitiativeBuilding on almost 10years of OECD workunder the Global Project How’s Life? (report) OECDNow moving to measuringwhat matters most in Better LifePEOPLE’s life Initiative Your Better Life Index (interactive web tool) OECD@50: Better policies for better lives
  3. 3. Focus• Households and people, not just GDP• Outcomes, not inputs or outputs• Assessing inequalities alongside averages• Including both objective and subjective aspects of well-being
  4. 4. ScopeWell-being here and now – Quality of Life – Material Living ConditionsWell-being in the future – Sustainability
  5. 5. The framework
  6. 6. Measurement approach Relevance of indicators - face-validity - easily understood, unambiguous interpretation - amenable to policy changes - possibility of disaggregation by population groups Quality of supporting data - official and well-established sources; non-official data used as place-holders in a few cases - comparable/standardized definitions - maximum country-coverage - recurrent data collection Significant documentation and testingNo Composite Index
  7. 7. An evolutionary process• Now: – Evidence based on existing data; all indicators reviewed by National Statistical Offices – But not all indicators satisfy all quality criteria equally well  How’s Life? identifies the statistical agenda ahead• In future: – New and improved indicators as results from OECD work, research and other initiatives become available – More than just environmental sustainability (economic, human and social)
  8. 8. Selected findings from How’s Life?
  9. 9. No country performs best in all dimensions Average country performance by dimensionNumber of green lights out of 22 headline indicators 60% Number of red lights out of 22 headline indicators Source : OECD calculations
  10. 10. Strengths and weaknesses differ among countries United States Income and wealth France 10 Subjective well- Jobs and earnings being 8 6 Personal security 4 Housing 2 0 Environmental Work and life quality balance Civic engagement Health status and governance Education and Social connections skills Source : OECD calculations
  11. 11. Inequalities in well-being : incomeLarge income inequalities in many OECD countries…0.600.500.400.300.200.100.00 Gini coefficient, 2008 or latest year available Source : OECD Income distribution and poverty database
  12. 12. Inequalities in well-being: income … which have increased in many of them0.070.060.050.040.030.02 0.010.00-0.01-0.02-0.03-0.04 Point changes in Gini coefficient, from mid-1980s to late-2000s Source : OECD Income distribution and poverty database
  13. 13. Inequalities in well-being: health Low-income people report lower health status100 Highest income quintile90 Lowest income quintile8070605040302010 0 Source : OECD Health Data; EU-SILC
  14. 14. Inequalities in well-being: social connections Lower-educated and lower-income people also have… … weaker social ties… … and lower trust in others95 40 3590 3085 2580 20 1575 1070 565 0 Primary Secondary Tertiary 1 2 3 4 5 Primary Secondary Tertiary 1 2 3 4 5 Axis Title Axis Title Education Income quintile Incomequintile Education Percentage of people reporting that they have someone Percentage of people reporting trusting others, 2010 to count on in times of need, 2010 Source : Gallup World Poll
  15. 15. Inequalities in well-being: jobsLong-term unemployment much higher among youth 25-54 15-241816141210 8 6 4 2 0 Long-term unemployment rate, 2010 Source : OECD Labour force statistics database
  16. 16. Inequalities in well-being: work-life balanceSatisfaction with work-life balance is lower for working women and goes down with the number of children Male Female 30 28.5 27.3 24.8 24.7 25 23.4 23.3 21 20.2 20 15 10 5 0 No child 1 child 2 children 3 or more children Percentage of workers satisfied with their work-life balance in Europe, 2007 Source : Second European Quality of Life Survey
  17. 17. Other people matter for one’s subjective well-being Life satisfaction goes up with social ties 8 With friends to count on Without friends to count on 7Average Life Satisfaction 6 5 4 3 2 Source : Gallup World Poll
  18. 18. Environmental sustainabilityDemand-based CO2 emissions grew faster than production- based emissions in the OECD area Production Demand 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 OECD Other major economies Production-based and demand-based CO2 emissions, Rate of change per year, 1995-2005 Source : OECD, Towards Green Growth: Monitoring Progress – OECD Indicators
  19. 19. Involving the public• Engaging with civil society has been one of the goals of the OECD-hosted Global Project• How’s Life? is accompanied by interactive web tool (Your Better Life Index) aimed at involving the public
  20. 20. Your Better Life Index
  21. 21. What matters most to people ?11.00%10.50% Female 37%10.00% Male 63%9.50%9.00% All Male Female8.50%8.00% 7.50% Source : OECD calculations
  22. 22. Age makes a differenceHealth, Governance and Environment become While income, jobs and work-life balancemore important with age become less important 11.0% 11.0% Users weights Housing Housing Users weights Income Income 10.5% 10.5% Jobs Jobs 10.0% Community 10.0% Community Education Education 9.5% 9.5% Environment Environment Governance Governance 9.0% 9.0% Health Health 8.5% 8.5% Life satisfaction Life satisfaction Safety Safety 8.0% 8.0% Work and Life Work and Life balance balance 7.5% 7.5% 15-24 25-34 35-44 45-54 55-64 >65 15-24 25-34 35-44 45-54 55-64 >65 Source : OECD calculations
  23. 23. What’s next (1) OECD committed to deliver on How’s Life? measurement agenda  Developing guidelines on subjective well-being  Integrating inequalities in National Accounts  Developing standards for measuring household wealth and joint distribution of income, consumption and wealth  Measures of household non-market production  Green Growth Indicators; Human and social capital In collaboration with National Statistical Offices and other international organisations
  24. 24. What’s next (2)• Extending the well-being agenda to developing countries as part of the new OECD Development Strategy• Promoting effective use of new measures for policy-making• Continued engagement with civil society  4th OECD World Forum in India in October 2012
  25. 25. Thank you
  26. 26. Your Better Life Indexhttp://www.oecdbetterlifeindex.org/ 26

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