MEASURING WHAT MATTERS TO PEOPLE. Martine Durand OECD Chief Statistician and Director of Statistics

Similar documents
How s Life in South Africa?

How s Life in Colombia?

How s Life in Costa Rica?

How s Life in Brazil?

How s Life in the Russian Federation?

Wirtschaftspolitik für höheres Wachstum und weniger Ungleichheit

THE BENEFITS OF EXPANDING THE ROLE OF WOMEN AND YOUTH IN ECONOMIC ACTIVITIES

How s Life in Israel?

How s Life in France?

2017 OECD ECONOMIC SURVEY OF SWITZERLAND

Upgrading business investment

NON-STANDARD WORK AND INEQUALITY

2018 OECD ECONOMIC SURVEY OF CHILE

What is the economic outlook for OECD countries?

2018 OECD ECONOMIC SURVEY OF POLAND

OECD ECONOMIC SURVEY OF NORWAY

Better Life Index 2017 Definitions and metadata

FA M I LY A L L O WA N C E A N D F E M A L E L A B O U R M A R K E T S U P P LY I G A M A G D A

Can employment be increased only at the cost of more inequality?

STRUCTURAL POLICIES AND THE DISTRIBUTION

Beyond GDP: Better Ways to Measure Better Lives

WHAT DO HOUSEHOLD SURVEYS SUGGEST ABOUT THE TOP 1% INCOMES AND INEQUALITY IN OECD COUNTRIES? Nicolas Ruiz (OECD)

Why is Japan s inward FDI so low?

BETTER LIFE INDEX 2013: DEFINITIONS AND METADATA

Nero Meeting: Alain de Serres OECD Economics Department. 21 June 2013

OECD Science, Technology and Industry Scoreboard 2013

Alternative measures of well-being

Towards a more prosperous and inclusive Argentina

ASSET-BASED POVERTY: INSIGHTS FROM THE OECD WEALTH DISTRIBUTION DATABASE. Carlotta Balestra OECD Statistics and Data Directorate

The Norwegian Economy

Fiscal Policy and Economic Growth

Credit Supply, Household Debt, and Business Cycles

Roads to recovery. George Gelauff, Debby Lanser, Albert van der Horst, Adam Elbourne. CPB Netherlands Bureau for Economic Policy Analysis

POLICY STRATEGIES FOR GROWTH- AND EQUITY- FRIENDLY FISCAL CONSOLIDATION

The Economic Contribution of Older Workers

Internationally comparative indicators of material well-being in an age-specific perspective

MINIMUM WAGES ACROSS OECD COUNTRIES: BACK TO THE FUTURE?

State Involvement and Economic Growth

How demanding are eligibility criteria for unemployment benefits? Quantitative indicators for OECD and EU countries

education (captured by the school leaving age), household income (measured on a ten-point

2019 OECD ECONOMIC SURVEY OF PORTUGAL

Policy Forum: How to address Inequality and Poverty in South Africa 7 June 2011, Reserve Bank, Pretoria

OECD Centre for Opportunity and Equality

ECONOMIC POLICY CHALLENGES FOR DENMARK FROM AN INTERNATIONAL PERSPECTIVE

Revenue Statistics Tax revenue trends in the OECD

Hours Worked Across the World: Facts and Driving Forces

TOWARDS MORE SUSTAINABLE AND INCLUSIVE GROWTH

G20 Finance and Central Bank Deputies Meeting February February, Structural Reform in a Crisis Environment.

PUBLIC SERVICE EMPLOYMENT

Brazil lending market report

The Danish flexicurity model and the crisis. Torben M. Andersen University of Aarhus CEPR, CESifo and IZA

THE TAX SYSTEM IN BELGIUM COMPARED TO OTHER OECD COUNTRIES

Taxation and Skills. How tax systems impact skills development in OECD countries

POLICY TRENDS IN OECD COUNTRIES TO INCREASE COVERAGE AND CONTRIBUTIONS INTO FUNDED PENSION PLANS

Pensions at a Glance: Europe and Central Asia

Human Development Indices and Indicators: 2018 Statistical Update. Belgium

Corrigendum. Page 41, Table 1.A1.1. Details of pension reforms, September 2013-September 2015 : Columns on Portugal should read as follows:

Effective Labour Taxation and the International Location of Headquarters. Peter H. Egger, Doina Radulescu, Nora Strecker.

OECD ECONOMIC SURVEY OF BRAZIL 2018

SERVICES TRADE, REGULATION AND GVCS

1. Summary Nyt kapitel

How to deal with potential secular stagnation

EFFICIENCY OF EDUCATION EXPENDITURE IN OECD COUNTRIES

Human Development Indices and Indicators: 2018 Statistical Update. Switzerland

Income support for older persons in the Republic of Korea : a perspective of older persons

An asset-based approach to measuring vulnerability in OECD countries

The New Welfare State An Answer to New Social Risks? Joakim Palme Institute for Futures Studies

WORKING PAPERS. Sustaining Employment of Older Workers in an Ageing Society. Gudrun Biffl, Joseph E. Isaac

Overview of the political economic and financial situation in Italy

High Debt, Slow Growth, Financial Instability, Growing Inequality: What Role for Economic Policy?

OECD long-term projections for the global economy. David Turner, OECD

INCOME DISTRIBUTION AND POVERTY IN THE OECD AREA: TRENDS AND DRIVING FORCES

Extract from Divided We Stand: Why Inequality Keeps Rising

OECD Workshop on effective corporate taxation. Corporate taxation on FDI; Kwang-Yeol. YOO, Korean Ministry of Finance. July.

OECD MULTI-DIMENSIONAL COUNTRY REVIEW - THAILAND INITIAL ASSESSMENT REPORT

Human Development Indices and Indicators: 2018 Statistical Update. Russian Federation

From Here to Eternity: The Outlook for Fiscal Adjustment in Advanced Economies. Carlo Cottarelli Director, Fiscal Affairs Department

Human Development Indices and Indicators: 2018 Statistical Update. Brazil

Human Development Indices and Indicators: 2018 Statistical Update. Costa Rica

Human Development Indices and Indicators: 2018 Statistical Update. Congo

Human Development Indices and Indicators: 2018 Statistical Update. Argentina

Economic Watch. Educational attainment in the OECD, Global

Human Development Indices and Indicators: 2018 Statistical Update. Turkey

Earnings related schemes: Design, options and experience. Edward Whitehouse

Human Development Indices and Indicators: 2018 Statistical Update. Peru

Human Development Indices and Indicators: 2018 Statistical Update. Uzbekistan

IMPROVING TAX COMPLIANCE. 6th IMF-Japan High-Level Tax Conference For Asian Countries Tokyo; April 7, 2015

Managing Public Wealth

Fiscal Policy and Inequality: What Do We Know? Benedict Clements International Monetary Fund

Efficiency in the Education sector

Waiting for the Recovery: OECD Labour Markets in the Wake of the Crisis

Israel. Israel: regional, urban and rural development policies

REGULATORY HETEROGENEITY AND TRADE IN SERVICES. Workshop on Trade and International Regulatory Cooperation, Hildegunn Kyvik Nordås, TAD/TSD

Eswatini (Kingdom of)

Entrepreneurship at a Glance 2018 Highlights

Human Development Indices and Indicators: 2018 Statistical Update. Paraguay

Fiscal Implications of Population Ageing Asian Countries

LABOUR MARKET REFORMS IN PORTUGAL

Primary Health Care Needs-Based Resource Allocation through Financing of Health Regions

Inequality and Fiscal Policy

Transcription:

MEASURING WHAT MATTERS TO PEOPLE Martine Durand OECD Chief Statistician and Director of Statistics Statistics Flanders Trustworthy numbers for a strong democracy Brussels, 13 December 2017

The OECD Better Life Initiative : measuring what matters to people 2

The OECD response to the need to go beyond GDP Launched in 2011 Developing alternative indicators of people s wellbeing and societies progress beyond GDP and integrating them into the mainstream statistical system Improving the evidence base available to policy-makers and citizens Promoting integrated, multidimensional policy approaches to address what matters most to people

The OECD well-being framework A focus on people rather than the economic system or GDP Measures outcomes rather than inputs and outputs Examines both averages and inequalities Considers both objective and subjective aspects Concerned with wellbeing both today and tomorrow

How s Life? 2017 Overview of levels and trends: 25 headline indicators of current wellbeing 32 indicators of resources for future well-being (natural, human, economic and social capital) Detailed country notes for 35 OECD countries and 6 partners Thematic chapters on: Inequalities in well-being Migrants well-being Governance and well-being

How does Belgium compare?

Belgium s comparative strengths and weaknesses in average well-being

(Selected) changes in Belgium s well-being relative to 2005 Cumulative gains in well-being since 2005 Long-term unemployment has fallen from 4.4% in 2005, to 4.0% in 2016 and the employment rate is 1.2 percentage points higher than in 2005. Annual average exposure to PM 2.5 air pollution has fallen by 7% overall since 2005 Homicides have fallen (from 1.5 per 100 000 people, to 1.0) In 2014, household net wealth was 7% higher (in real terms) than in 2010. However, household income in 2015 was just 2% higher, in real terms, than in 2005. Cumulative losses in well-being since 2005 Labour market insecurity in 2015 was 50% higher than in 2007 (when first measured) Housing affordability has declined: the share of household disposable income spent on housing costs has increase from 19.7% in 2005, to 20.5% in 2015. Although voting is compulsory, voter turnout fell from 91% in 2007, to 89% in 2014 Life satisfaction has fallen from 7.2 to 6.9, on a 0-10 scale

http://www.oecdregionalwellbeing.org/ But where you live matters

Ranking of OECD regions (1 to 395) top 20% Relative performance of the three Belgian regions by well-being dimensions Top region Bottom region Flemish Region Regions Flemish Region Flemish Region Flemish Region & Wallonia Flemish Region Wallonia Flemish Region Flemish Region Flemish Region bottom 20% middle 60% Flemish Region Brussels Capital Region Brussels Capital Region & Wallonia Wallonia Wallonia Flemish Region Brussels Capital Region Brussels Capital Region & Wallonia Brussels Capital Region & Wallonia Flemish Region Brussels Capital Region Brussels Capital Region Wallonia Flemish Region Jobs Community Health Access to services Safety Life Satisfaction Income Education Housing Environment Civic Engagement

How s Life? 2017 explores other wellbeing divides within OECD countries, including by: gender age education wealth migrant status and between people and the public institutions that serve them All illustrations Guilia Sagramola

Dispersion of income and other well-being outcomes across individuals

Widening income gap between rich and poor Household income has increased more rapidly at the top of the distribution (data from 17 OECD countries; OECD 1985 = 1) Bottom 10% Bottom 40% Middle 50-90% Top 10% 1.6 1.5 1.4 1.3 1.2 1.1 1 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Source: OECD Income Distribution Database; Unweighted average over 17 countries 13

Patterns of income inequality are not perfectly mirrored in other dimensions Percentage of countries for which performance in income inequality is similar to performance in other vertical inequalities 60 50 40 30 20 10 0 Age at death Student skills Hours worked Adult skills Gross earnings Political efficacy Net wealth Life satisfaction For a given country, the performance in income inequality is considered similar to performance in other vertical inequalities if they both fall in the same third when OECD countries are divided into least equal, middle equal and most equal thirds. Adapted from How s Life? 2017, Figure 2.4

Which OECD countries have the lowest dispersions in well-being outcomes across individuals? 100 Percentage of indicators in which a country shows comparatively low inequalities, latest available year 90 80 70 60 50 40 30 20 10 0 Low inequalities are defined as falling within the most equal third of OECD countries. Indicators are weighted so that the different dimensions of well-being are accorded equal weights. Adapted from How s Life? 2017, Figure 2.2

Differences in well-being outcomes among population groups consider differences among groups e.g. - by gender - by age - by education level - by migrant status - by the region people live in

The OECD average gender divide OECD average ratio of women's well-being low pay outcomes, relative to men s (1 = equality) Low pay Feeling safe walking at night Employment Average hourly earnings Self-reported health Adult skills Water quality Time on leisure and personal care Voter turnout Student skills Life satisfaction Educational attainment Political efficacy Social support Unemployment Time spent on social activities Very long working hours Homicide rate Women are worse off than men Women are better off than men 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 Adapted from How s Life? 2017, Table 2.A.3.

Women are much more likely than men to be in jobs with low pay Low pay (full-time workers earning less than 2/3 rd gross median income) ratio 1.0 = Equality between men and women. Scores below 1.0 = Women have a higher incidence of low pay Scores above 1.0 = Men have a higher incidence of low pay 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Source: adapted from Table 2.A.3, How s Life? 2017

The OECD average educational divide OECD average ratio of outcomes for people with a secondary education, relative to those with a tertiary education (1 = equality) Household net wealth Hourly earnings Unemployment Having a say in government Perceived health Employment Voter turnout Adult skills Cognitive skills of people's children Feeling safe walking at night Life satisfaction Social support Perceived water quality Very long working hours Secondaryeducated are worse off than tertiary-educated Secondaryeducated are better off than tertiary-educated 0.00 0.50 1.00 1.50 Adapted from How s Life? 2017, Table 2.A.7

Large differences in longevity in European countries Gap in life expectancy among men at age 25 and 65 by education (LE of men with tertiary education less that for men with below upper secondary education) Longevity gap at 25 years Longevity gap at 65 years 16 14 12 10 8 6 4 2 0 ITA GBR SWE AUT FRA NOR DNK SVK FIN SVN BEL LVA POL CZE HUN 20

The OECD average generational divide OECD average ratio of young people s well-being outcomes, relative to middle-aged adults (1 = equality) Household net wealth Unemployment Employment Hourly earnings Voter turnout Household disposable income Feeling safe walking at night Adult skills Perceived water quality Having a say in government Life satisfaction Quality of support network Time on leisure and personal care Educational attainment Perceived health Time on social activities Very long working hours Younger are worse off than middle-aged adults Younger are better off than middle-aged adults 0.00 0.50 1.00 1.50 2.00 The age ranges considered vary slightly by indicator, but typically concern persons aged around 15-24, relative to persons aged around 25-54. For further detailed, see How s Life? 2017, Table 2.A.4.

Impact of parental education on cognitive skills of 15-old students Ratio of cognitive skills (PISA scores on reading, mathematics and science) among students whose parents attained only a primary education, relative to those among students whose parents attained tertiary level 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Source: adapted from Table 2.A.6, How s Life? 2017

2. The Better Life Index: learning about people s preferences 23

Engaging with citizens on what matters to them www.oecdbetterlifeindex.org 24

Creating your own Better Life Index 25

and learning from what OECD BLI users tell us 12% 11% 10% 9% 8% 7% 6.9% 8.1% 8.7% 8.9% 8.9% 9.3% 9.3% 9.5% 10.0% 10.4% 10.5% 6% 5% 4% 3% 2% 1% 0% Notes: Responses weighted ex post to correct for biases in the age and gender composition of users. Ratings expressed as a percentage of the total ratings assigned; with equal weights to all 11 dimensions, each would attract 9.09% (shown as the red line). N = 73,761 people in OECD countries only. Source: OECD (2015), How's Life? 2015: Measuring Well-being, 26

Ingredients of the good life : Belgium, France, United States Health Education Work-life balance Life satisfaction Housing Environment Income and wealth Personal security Civic engagement Notes: Responses have not been weighted to correct for biases in the age and gender composition of the sample of users. Source: OECD Better Life Index http://www.oecdbetterlifeindex.org/ 27 Jobs Social connections

Understanding what matters is key to restore trust in institutions 28

Distance between people and the public institutions that serve them

Declining trust in governments Confidence in national government 2014-16 and changes since 2005-07 100 90 80 70 60 50 40 30 20 10 0-10 -20-30 -40 % in 2014-16 (right axis) Percentage point change between 2014-16 and 2005-07 (left axis) 100 90 80 70 60 50 40 30 20 10 0-10 -20-30 -40 Source: adapted from Figure 4.13, How s Life? 2017

Only one in three people in the OECD feel that they have a say in what the government does Adapted from How s Life? 2017, Figure 4.11. over half believe that corruption is widespread, and only 38% have confidence in their national government

People with fewer economic resources are less likely to feel they have a say in what the government does 3.5 3 2.5 2 1.5 1 0.5 0 Tertiary Secondary** Less than secondary** Employed Unemployed** Top quintile Bottom quintile** OECD average mean score on a 1-5 scale (higher scores indicate higher feeling of having a say in what the government does) ** indicates a statistically significant difference at the 95% confidence level, with tertiary-educated, employed and the top income quintile serving as the reference groups, respectively. Adapted from How s Life? 2017, Figure 4.12.

Do politicians represent the people they serve? Groups under-represented Groups over-represented A study of 11 OECD countries found that manual, agricultural and service workers make up 44% of the population at large, but only 13% of members of parliament. Senior officials and managers Workers Technicians and support staff Elementary occupations PRT (2011) GRC (2012) GBR (2010) DEU (2009) AUS (2010) NOR (2009) Professionals Senior officials and managers Technicians and support staff Elementary occupations in Belgium the figures are 32% and 15%, respectively (2010 elections) CHE (2011) ITA (2014) BEL (2010) IRL (2007) HUN (2010) -80-60 -40-20 0 0 20 40 60 80 Adapted from How s Life? 2017, Figure 4.5.

Better Life Initiative: Different media for different audiences Public outreach Data Collection Reporting, Analysis Communication Research & methodological work

Bottom line: Measuring what matters for better policies A more complete picture of progress capturing aspects of life often missed by more conventional measures) Highlighting the diversity of experiences at a granular, people-centred level Supporting the strategic alignment of outcomes across government departments Forward-looking: resources for future well-being, not just outcomes here and now 35

Thank you for your attention! martine.durand@oecd.org www.oecd.org/measuringprogress www.oecd.org/howslife www.oecdbetterlifeindex.org http://www.oecd.org/inclusive-growth/ 36