measuring what matters in people’s lives: the oecd better life initiative and beyond romina...
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Measuring what matters in people’s lives: the OECD Better Life Initiative and beyond
Romina BoariniOECD Statistics Directorate
Qatar Statistics Day ForumDoha 10 December 2013
Presentation outline
1. The OECD framework for measuring well-being
> motivation, context, content
2. How the OECD framework has been applied
> Better Life Index, How’s Life?, country reviews
3. How the OECD framework can be extended to non-OECD countries
OECD well-being framework > Applying the framework > Extending the framework
1. OECD framework for measuring well-being
OECD well-being framework > Applying the framework >Extending the framework
Why measure well-being?
How to measure better lives?
…addressing the well-known limits of traditional economic measures, such as GDP per capita, for capturing wider well-being and the progress of societies
OECD 50th anniversary: Better policies for better lives
OECD well-being framework > Applying the framework > Extending the framework
The problem with GDP
• GDP never designed to measure people’s well-being: Counts only what has a price: goods and services exchanged on the market;
public services Offers an aggregate picture: does not on inform on how resources are
distributed across the population It is static: does not tell about well-being in the future
• GDP growth does not correlate with: People’s sense of well-being (e.g. Easterlin Paradox, life satisfaction trends
and the Arab Spring) Trends in household’s perceived living standards Evolution in other socio-economic outcomes
• The value of GDP: An indicator of macro-economic performance and in particular of the supply
potential of the economy Economic growth is “only” a means to Better Lives
OECD well-being framework > Applying the framework > Extending the framework
Recent calls to go ‘beyond GDP’
• Stiglitz-Sen-Fitoussi report (2009)
• EU 2020 and Communication on “GDP and beyond”
• UN Resolution 65/309 (2012): “Happiness: towards a holistic approach to development”
• Rio+20 “The Future We Want” declaration, June 2012
• Wide range of national initiatives
OECD well-being framework > Applying the framework > Extending the framework
Well-being indicator projects - worldwideOECD well-being framework > Applying the framework > Extending the framework
OECD well-being frameworkOECD well-being framework > Applying the framework > Extending the framework
2. Applying the OECD well-being framework: How’s Life? 2013
OECD well-being framework > Applying the framework > Extending the framework
Wide (and growing!) range of applications
Communicating with citizens and the media: Your Better Life Index website www.oecdbetterlifeindex.org
In-depth statistical reports: How’s Life? 2011; 2013
Building well-being measures into OECD country reviews: Economic Surveys (Austria, USA, Australia) How’s Life in Israel? , Multidimensional Country Reviews (Myanmar, Philippines, Uruguay)
OECD well-being framework > Applying the framework > Extending the framework
Indicator selection: measurement goals
Key question: Is life getting better, and for whom? Focus on people rather than economic system or GDP
Measure well-being outcomes rather than inputs and outputs
Describe both averages and inequalities in well-being
Capture both objective and subjective aspects of life
Be relevant to well-being both today and tomorrow
OECD well-being framework > Applying the framework > Extending the framework
Relevance- face valid - easily understood - policy relevant
Data considerations- official or established sources; non-official place-holders- comparable/standardized definitions- maximum country-coverage- recurrent data collection- can be disaggregated by population groups
Indicator selection: guiding principlesOECD well-being framework > Applying the framework > Extending the framework
Just released: How’s Life? 2013
Gender gaps in well-being
The human costs of the financial crisis
How’s Life at a glance: 25 headline indicators
Job quality: Well-being in the workplace
How to measure the sustainability of well-being over time
OECD well-being framework > Applying the framework > Extending the framework
How’s life in 2013?
20% top performers 60% middle performers
Canada
Germany
Greece
OECD well-being framework > Applying the framework > Extending the framework
The global financial crisis has had a profound impact on people’s well-being
Life satisfaction dropped as unemployment increased
Source: How’s Life? 2013X-axis: Life Satisfaction =average score on a 0-10 scale ; source: OECD calculations on the World Gallup PollY-axis: Long term unemployment rate= % of the labour force unemployed for one year or more; source: OECD Labour Force Statistics
2007 2008 2009 2010 2011 20126.7
6.8
6.9
7.0
7.1
7.2
7.3
7.4
7.5
7.6
0
1
2
3
United States
Life satisfactionLong-term unemployment rate (right hand y-axis)
2007 2008 2009 2010 2011 20125.6
5.8
6.0
6.2
6.4
6.6
6.8
7.0
7.2
7.4
7.6
0
1
2
3
4
5
6
7
OECD Euro area (selected countries)
Life satisfactionLong-term unemployment rate (right hand y-axis)
OECD well-being framework > Applying the framework > Extending the framework
The crisis also affected other aspects of life
Trust in governments declined
But new forms of solidarity emerged
2007 2008 2009 2010 2011 201210
15
20
25
30
35
40
45
50
55
OECD OECD Euro areaJPN USA
Percentage of people reporting to trust national government
2007 2008 2009 2010 2011 201280
85
90
95
100
105
110
115
120
OECD OECD Euro area USA
Percentage of people reporting having helped someone, 2007=100
Source: OECD calculations on Gallup World Poll
OECD well-being framework > Applying the framework > Extending the framework
Communicating with media and citizens: the Better Life Index
OECD well-being framework > Applying the framework > Extending the framework
The Better Life Index: lessons so far
• 3 million people from all over the world• Life satisfaction, health and education matter most• Community and work-life balance more important for
women, income more important for men
OECD well-being framework > Applying the framework > Extending the framework
BLI users’ weights (50000 observations)
3. Extending the well-being framework to non-OECD countries
OECD well-being framework > Applying the framework > Extending the framework
Goals
• Does the How’s Life? framework resonate with the concerns of non-OECD countries? Holistic view of progress and human development present in the vision of
many countries Many ongoing initiatives on measuring well-being in emerging economies The OECD framework covers universal aspirations for better lives
• What type of adjustments are necessary? Things that are taken for granted Data context Resources and capacity
• What applications are possible? How’s Life in country/region X? OECD Multidimensional Country Reviews
OECD well-being framework > Applying the framework > Extending the framework
Methods
• Review of national and international practices in measuring well-being and human development
• Develop a framework that builds on the How’s Life dimensions and features but integrates non-OECD specific well-being issues and indicators
• Output: Conceptual Guide on Measuring Well-Being for Development
• Done by OECD Development Centre and Statistics Directorate, possibly mainstreamed in the OECD Development Strategy
OECD well-being framework > Applying the framework > Extending the framework
Towards an extended framework - well-being here and nowDimensions Issues (examples) Indicators (examples)
Consumption possibilities
Material living standards, poverty, ownership of assets and durables
Mean household disposable income, national poverty rates (absolute and relative), etc.
Housing and infrastructures
Access, use and distance from basic amenities, access to health care and schools
Share in households living in dwellings without basic housing services (water, sanitation, electricity, heating, gas), etc.
Jobs quantity and quality
Lack of employment, informality, hours of paid and unpaid work, free time
Employment and unemployment rates; underemployment; share of workers with no written contracts; share of children engaged in child labour, etc
Health Status Longevity, morbidity, disability, malnutrition Infant, under-5 and maternal mortality rates; share of children with below-standard heights and weights, etc.
Education and skills
Literacy, competencies of children, adolescents and adults
Enrolment rates in pre-primary, primary and secondary education; drop-out rates; students’ scores (PISA), etc.
Social connections
Quantity and quality of social interactions, social support, social isolation
Share of individuals relying on private networks to find jobs; share of people reporting they have someone to rely in case of need, etc.
Empowerment Civil and political rights, access to accurate information, responsive and accountable institutions, sense of empowerment, cultural identity
Share of people trusting institutions and local governments; share of people satisfied with basic services; summary measures of rights and governance, etc.
Vulnerability Risky behaviours, violence and criminal victimisation, exposure to large scale risks
Prevalence of substance abuse; incidence of unsafe sex; prevalence of domestic violence against women and children, etc.
Environmental conditions
Indoor and outdoor pollution, water contamination, noise, green space
Share of households lacking waste water treatment and waste disposal; share of household using dirty fuel for cooking and eating, etc.
Life evaluation and feelings
Life evaluations, affective states, sense of purpose
Share of individuals satisfied with their life; share of individuals experiencing various positive and negative feelings, etc.
Towards an extended framework - well-being there and then
Dimensions Issues (examples) Indicators (examples)
Economic Systems
Economic capital, macro-economic imbalances, foreign indebtedness, transparency and stability of the financial system
Stock of net foreign liabilities; stock of produced assets; stock of net public and private debt, measures of illicit flows and tax evasion, infrastructural capital
Socio-cultural systems
Human capital, cultural heritage (languages, traditions), social norms, cultural and language diversity
Measures of human capital based on life-time income estimates; indicators of adequacy and efficiency of health care systems; etc.
Ecosystems Deforestation, desertification, loss of biodiversity, natural landscapes and heritage
Terrestrial and marine areas protected, etc.
OECD well-being framework > Applying the framework > Extending the framework
Thank you! to learn more about our work:
www.oecd.org/progress
www.oecd.org/howslife
www.oecdbetterlifeindex.org
OECD well-being framework > Applying the framework > Extending the framework