Going beyond GDP: An OECD Perspective

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1 FISCAL STUDIES, vol. 34, no. 3, pp (2013) Going beyond GDP: An OECD Perspective ROMINA BOARINI and MARCO MIRA D ERCOLE Appendix. Headline and secondary indicators used to measure well-being in the OECD Better Life Initiative Each indicator is identified by a code of two letters (in either upper or lower case) and one number (either Roman or Arabic). The two letters refer to the dimension (for example, IW stands for income and wealth), while the number refers to the order in which the indicators are presented (for example, I or 1 for the first indicator, II or 2 for the second indicator). Indicators are either headline indicators (identified by capital letters and Roman numerals) or secondary indicators (coded in lower case with an Arabic numeral). Headline indicators meet a large number of quality criteria (including policy relevance, quality of underlying data set, comparability of concepts and survey questions, and frequency of compilation 1 ), while secondary indicators have lower quality and provide complementary evidence on well-being, focusing on specific aspects of the various dimensions For more information, see OECD, How s Life? Measuring Well-Being, OECD Publishing, Paris, 2013 The Authors Fiscal Studies 2013 Institute for Fiscal Studies. Published by John Wiley & Sons Ltd, 9600 Garsington Road, Oxford, OX4 2DQ, UK, and 350 Main Street, Malden, MA 02148, USA.

2 OECD, How s Life? Measuring Well-Being, 2011 metadata Dimensions and indicators Definition Measure Data source Income and wealth IW I Household net adjusted disposable income The maximum amount that a household can afford to consume without having to reduce its assets or to increase its liabilities. The indicator is obtained by adding to s gross income (earnings, self-employment and capital income, and current monetary transfers received from other sectors) the social transfers in kind that households receive from governments (such as education and healthcare services), and then subtracting the taxes on income and wealth, the social security contributions paid by households and the depreciation of capital goods consumed by households. IW II Household financial wealth Household financial assets (currency and deposits, securities other than shares, loans, shares and other equity, net equity of insurance technical reserves and of pension funds, prepayments of premiums and reserves against outstanding claims, and other accounts receivable) net of household financial liabilities. iw 1 Household final consumption All purchases made by resident households (home and abroad) to meet everyday needs. The indicator also includes a number of imputed expenditures (e.g. owner-occupiers imputed rents, agricultural products produced for own consumption, income in kind (goods or services either free of charge or at very low prices as part of an employee s wage)). iw 2 Household total consumption All purchases made by resident households of marketable goods and services (i.e. household final consumption) and non-marketable services produced by households (e.g. own-produced meals, childcare). iw 3 Subjective evaluation of material well-being The objective is to assess the respondent s feeling about the level of difficulty experienced by the household in making ends meet. The indicator is based on the question A household may have different sources of income and more than one household member may contribute to it. Thinking of your household s total income, is your household able to make ends meet, namely, to pay for its usual necessary expenses?, with response scale with great difficulty / with difficulty / with some difficulty / fairly easily / easily / very easily. US dollars per capita at 2000 PPPs US dollars per capita at 2000 PPPs US dollars per capita at 2000 PPPs US dollars per capita at 2008 PPPs, USA = 100 declaring that they are having great difficulty or difficulty making ends meet OECD National Accounts data; Statistics New Zealand; OECD Secretariat estimates OECD National Accounts data; Statistics New Zealand OECD National Accounts data OECD Statistics Directorate Working Paper 2011/7, Incorporating estimates of household production of nonmarket services into international comparisons of material well-being, by N. Ahmad and S-H. Koh OECD Secretariat calculations based on data from European Union Statistics on Income and Living Conditions (EU-SILC)

3 Jobs and earnings JE I Employment rate Working-age population (15 64 years old) currently employed in a paid job. As a percentage OECD, Labour Force Statistics of the population aged JE II Long-term unemployment rate Persons aged who have been unemployed for one year or more. As a percentage of the labour force aged je 1 JE III je 2 Incidence of involuntary part-time employment Average gross annual earnings of full-time employees Employees working on temporary contracts People working involuntarily in part-time jobs. Average gross annual earnings (wages and salaries) of full-time employees in the total economy. The indicator considers employees gross remuneration, i.e. the total before any deductions are made by the employer in respect of taxes, employees contributions to social security and pension schemes, life insurance premiums, union dues and other obligations of employees. Employees working on temporary contracts. je 3 Work accidents Frequency of fatal and non-fatal injuries. This indicator could be considered a standard measure of job safety. je 4 Perception of job insecurity Perception of the employed (employees and self-employed) over age 15 of chance of losing their job in the next six months. The indicator is based on the question How much do you agree or disagree with the following statement describing some aspects of your job? I might lose my job in the next 6 months, with response scale strongly agree / agree / neither agree nor disagree / disagree / strongly disagree. As a percentage of total employment US dollars at 2008 PPPs As a percentage of total employees Number of work accidents during 12 consecutive months per 100,000 workers respondents declaring they might lose their job in the next six months, i.e. answering strongly agree or agree OECD, Labour Force Statistics OECD, Labour Force Statistics OECD estimates based on OECD National Accounts and OECD, OECD Economic Outlook, no. 87, 2010 OECD, Labour Force Statistics ILO LABORSTA ; Eurostat New Cronos ; US Bureau of Labor Statistics website on fatal work accidents and occupational injuries, European Foundation for the Improvement of Living and Working Conditions, Fourth European Working Conditions Survey (2005), 2007, u/surveys/ewcs/2005/index.htm

4 Housing HO I Number of rooms per person in a dwelling Number of rooms in a dwelling (including living rooms but excluding kitchens and bathrooms) divided by the number of persons living in the same dwelling. This indicator provides information on housing overcrowding. ho 1 Housing cost overburden rate Households where total housing costs (net of housing allowances) represent 40 per cent or more of their equivalised disposable income. This indicator provides information on housing affordability. HO II Lack of access to basic sanitary facilities: absence of indoor flushing toilets and/or a bathroom (bath or shower) Assessment of selected housing deficiencies: absence of indoor flushing toilet, absence of a bath and absence of a shower. The indicator is based on the questions Is there a shower unit or a bathtub in your dwelling? and Is there an indoor flushing toilet in your dwelling?. ho 2 Satisfaction with housing People s subjective appreciation of their current residential context. The indicator is based on the question Are you satisfied or dissatisfied with your current housing, dwelling, or place you live?, with responses grouped into two categories satisfied and dissatisfied. ho 3 Overcrowding A dwelling is defined as overcrowded if the number of rooms available is less than: one room for the household; one room per couple in the household; one room for each single person aged 18 or more; one room per pair of single of the same gender between 12 and 17 years of age; one room for each single person between 12 and 17 years of age not included in the previous category; and one room per pair of children under 12 years of age. Average number of rooms per person experiencing housing cost overburden living in a dwelling without basic sanitary facilities satisfied living in an overcrowded dwelling (EU-SILC); national statistical offices and OECD s calculations (EU-SILC) (EU-SILC); national statistical offices of Chile, Japan, Mexico, Turkey and the US (EU-SILC)

5 Health status HS I Life expectancy at birth How long could expect to live based on age-specific death rates currently Number of years OECD health data prevailing. hs 1 Infant mortality Mortality of children under 1 year of age. Deaths per OECD health data 100,000 live births HS II Self-reported health status A single measure of the overall health status of the individual. The indicator is based on questions such as How is your health in general?, with response scale such as very good / good / not very good / poor. hs 2 Self-reported long-standing illness Prevalence of chronic illnesses. The indicator is based on questions such as Do you have any long-standing illness or health problem which has lasted or is expected to last for six months or more?. hs 3 Self-reported limitations in daily activities Experience of disabilities resulting from a severe health problem. The indicator is based on the question For at least the past six months, have you been hampered because of a health problem in activities usually do?, with answers classified as yes, strongly limited / yes, limited / no, not limited. hs 4 Overweight and obesity Indicator derived from anthropometric measures of s height and weight. People whose body mass index (BMI = kg/m 2 ) is from 25 to 30 and over 30 are defined, respectively, as overweight and obese. aged 15 years and over reporting very good or good health aged 15 years and over reporting a longstanding illness or health problem aged 15 years and over reporting a limitation in usual activities owing to health problems whose BMI is 25 to 30 / over 30 OECD health data; European Union Statistics on Income and Living Conditions (EU-SILC) OECD health data; European Union Statistics on Income and Living Conditions (EU-SILC) (EU-SILC); Swiss Federal Statistical Office OECD health data; WHO Global Infobase

6 Work and life WL I Long working hours People working 50 hours or more per week. employees OECD Labour Force Statistics ; Swiss Federal Statistical Office WL II Time devoted to leisure and to personal care The time devoted to leisure and personal care on a typical day by full-time Hours spent on a workers. Leisure includes sports activities; participating in and attending events; typical day visiting or entertaining friends; watching TV or listening to the radio at home; and other leisure activities. Personal care includes activities such as sleeping; eating and drinking; personal, household and medical services; and travel related to personal care. Minutes spent on by full-time workers. a typical day wl 1 Commuting time Time spent travelling to and from the workplace (commuting) on a typical day wl 2 Satisfaction with work life time allocation WL III Employment rate of women with children of compulsory school age A measure of s self-perceived capacity to reconcile work and life. The indicator relies on the question Could you tell me if you think you spend too much, too little or just about the right amount of time in: (i) my job / paid work; (ii) contact with family members living in this household or elsewhere; (iii) other social contact (not family); (iv) own hobbies / interests?. An indirect measure of the ability of mothers to combine paid work and family responsibilities. The indicator considers the number of employed mothers with youngest child aged 6 14 years. feeling that they spend just the right amount of time in each of the considered areas Employment rate of mothers with youngest child aged 6 14 years OECD Time Use Survey OECD Time Use Survey Second European Quality of Life Survey OECD Family based on data from European Labour Force Surveys ( ) for EU countries; Australian Bureau of Statistics for Australia; Labour Force Survey (2010) for Canada; Statistics Denmark for Denmark; Statistics Iceland for Iceland; Japanese national census (2005) for Japan; Encuesta Nacional de la Dinámica Demográfica (2006) for Mexico; Swiss Labour Force Survey (2009) for Switzerland; US Current Population Survey (2005) for the US

7 Education and skills ES I Educational attainment Level of formal education attained by. This indicator can be considered a proxy for the knowledge and skills available in a country. the population aged with at least an uppersecondary school degree OECD, Education at a Glance 2011: OECD Indicators, 2011 es 1 Education expectancy Educational opportunities available to today s youth. Number of years OECD, Education at a Glance of education that 2011: OECD Indicators, 2011 youth aged 15 today may expect to undertake while aged 15 29, based on the current enrolment of aged es 2 Lifelong learning Workers learning opportunities. the population aged who have participated in formal and non-formal further education ES II Students cognitive skills Level of reading skills of 15-year-old students. This indicator can be considered as the educational potential of a country. Average PISA scores (reading scale) es 3 Students civic skills Civic and citizenship knowledge of students aged around Scores in civic knowledge OECD, Education at a Glance 2010, Data drawn from the EU Adult Education Survey for EU countries; the Multi- Purpose Household Survey ( ) for Australia; the Access and Support to Education Survey (2007) for Canada; the Educational Development Institute Survey (2007) for Korea; the Adult Literacy and Life Skills Survey (2006) for New Zealand; the Swiss Labour Force Survey (2007) for Switzerland; and the National Household Education Survey (2005) for the US OECD, PISA 2009 at a Glance, 2010 International Civic and Citizen Education Study, 2011

8 Social connections SC I Social network support A measure of perceived social network support. The indicator is based on the question If you were in trouble, do you have relatives or friends you can count on to help you whenever you need them, or not? and it considers the respondents who respond positively. sc 1 Frequency of social contact A measure of informal social connection. The indicator considers reporting that they socialise (i.e. meet face-to-face) with friends or relatives living outside the household at least once a week. sc 2 Time spent volunteering A measure of formal social connection. The indicator considers the time spend volunteering. sc 3 Trust in others A measure of interpersonal trust. The indicator is based on the question Generally speaking, would you say that most can be trusted or that you have to be careful in dealing with?. It considers who agree with the statement that most can be trusted. Civic engagement and governance CG I Voter turn-out Two indicators are considered: the number of total votes cast over the votingage population (generally, the population aged 18 or more) and the number of total votes cast over the population registered to vote. cg 1 Participation in political activities other than voting who responded yes to at least one of the options of the question During the last 12 months, have you done any of the following actions: contacted a politician, government or local government official, worked in a political party or action group, worked in another organisation or association, worn or displayed a campaign badge/sticker, signed a petition, taken part in a lawful public demonstration, boycotted certain products?. CG II Transparency of governance A weighted average of yes/no answers to various questions on the existence of law consultation by citizens, of formal procedures enabling the general public to impact regulation and governmental actions. cg 2 Trust in institutions People s self-reported confidence assessed with the question Do you have confidence in the national government / the judicial system and courts / the media?. (EU-SILC), 2006; Canada General Social Surveys, 2008; New Zealand General Social Surveys, 2008 Minutes per day OECD Time Use Survey the population Weighted average of yes/no answers reporting confidence International Institute for Democracy and Electoral Assistance (IDEA) European Social Survey (ESS) OECD Regulatory Management Systems Indicators Survey 2005 and , indicators

9 Environmental quality EN I Air quality Population-weighted average of annual concentrations of particulate matters less Micrograms per World Bank than 10 microns in diameter (PM10) in the air. cubic metre en 1 Environmental burden of disease Quantification of the disease burden that could be avoided by modifying the environment as a whole. en 2 Satisfaction with environmental quality of local environment People s subjective appreciation of the environment where they live. The indicator is based on two questions: In the city or area where you live, are you satisfied or dissatisfied with the quality of air (water)? and it considers who responded that they are satisfied. en 3 Access to green spaces The indicator is based on the question Please think about the area where you live now I mean the immediate neighbourhood of your home. Do you have reasons to complain about the lack of access to recreational or green areas?, with a response scale very many reasons / many reasons / a few reasons / no reason at all / don t know. en 4 Access to different types of wastewater treatment Connection to primary/secondary/tertiary waste-water treatment. Number of years lost due to ill health, disability or early death measured in disabilityadjusted life years (DALYs) per 1,000 respondents World Health Organisation (WHO) European Quality of Life who have Survey (EQLS) very many reasons or many reasons to complain about the lack of access to recreational or green areas OECD Environment connected to one of the three waste-water treatments

10 Sustainability Dimensions and indicators Definition Measure Data source Production-based and consumptionbased CO 2 emissions Intensity of forest resource use Land used for agriculture Nitrogen surplus intensities Freshwater abstraction An indicator to monitor environmental efficiency of production and consumption. It presents the estimation of CO 2 emissions distributed by purpose: production-based estimates include emissions for domestic economic activities; demand-based estimates allocate the emissions in producing a product to the final purchaser of the product. To monitor the renewability of forest resources, the indicator relates the actual harvest and the annual productive capacity. It considers the average annual volume of all trees that are felled (fellings) over the average annual volume of increment of all trees (annual gross increment), measured to a minimum diameter breast height (d.b.h.) of 0cm in the considered period. An indicator to monitor the natural asset base. It considers changes in land used for agriculture by An indicator of environmental pressures from nutrients on natural assets such as soil and water. It considers the difference between the total quantity of nitrogen entering the agricultural system and the quantity of nutrient leaving the system. The indicator presents the freshwater abstraction trends by scope (i.e. irrigation, public supply industry and cooling) for OECD countries. Rate of change per year of productionbased and demand-based CO 2 emissions Fellings as percentage of annual gross increment Index, 2005 = 100 Kilograms per hectare of agricultural land Index, 1980 = 100 Personal security PS I Intentional homicides Annual police-recorded intentional homicides (male and female victims). Rate per 100,000 population PS II Self-reported victimisation The indicator is based on the question Within the past 12 months: have you been assaulted or mugged? and it considers declaring they have been assaulted or mugged. aged 15 and over ps 1 Domestic violence on children Child deaths due to negligence, maltreatment or physical assault. Children 0 19 years old; rate per 100,000 ps 2 Feelings of security The indicator is based on the question Do you feel safe walking alone at night in the city or area where you live? and it considers declaring they feel safe. OECD, Towards Green Growth: Monitoring Progress OECD Indicators, 2011 OECD Environment OECD, OECD Environmental Outlook to 2030, 2008 OECD, Towards Green Growth: Monitoring Progress OECD Indicators, 2011 OECD, OECD Factbook 2010: Economic, Environmental and Social Statistics, 2010 UN Office on Drugs and Crime (UNODC); Eurostat; Crime and Criminal Justice Statistics for Austria, Denmark, Ireland and the Netherlands OECD Secretariat calculations based on WHO mortality

11 Subjective well-being SW I Life satisfaction People s evaluation of their life as a whole. The indicator is a weighted sum of different response categories based on s ratings of their current life relative to the best and worst possible lives for them on a scale from 0 to 10, using the Cantril ladder (known also as the Self-Anchoring Striving Scale ). Mean value (Cantril ladder) (Eurobarometer for trend data ) SW II Net affect The indicator is based on s experience and feelings at a specific point in time. It considers reporting more positive affect (smiling and laughing, experienced enjoyment, felt well-rested) than negative affect (experienced worry, experienced sadness, experienced depression) on the previous day.

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