Measuring Well-Being The O OECD Better L Life Initiative Martine Durand, OECD Chief Statistician and Director of Statistics NZ Treasury, Wellington, 1 February 2013
Measuring Well-Being The O OECD Better L Life Initiative Martine Durand, OECD Chief Statistician and Director of Statistics NZ Treasury, Wellington, 1 February 2013
Outline • Context • OECD Better L Life Initiative • The g global well-being agenda : highlights o of the 4 4 th th OECD World F Forum • What’s next
Context
The starting point • An increasing gap between what official l statistics say about economic performance, and how people perceive their own li living conditions • Risk that people may lo lose faith in governments’ ability to address “what matters to them” • Potentially dangerous for democracy
A consensus to go “beyond GDP” • GDP is a key measure to monitor macro- economic activity, productivity, demand for paid-jobs • GDP is not a metric for people’s well ll-being and and is often at variance with people’s personal experiences • Measuring well ll-being impli lies confronting valu lues: from “treasuring what you measure” to “measuring what you treasure”
Well ll-being: a lo long-standing focus of OECD work • Work on environmental and social indicators (1980s-90s) • Analy lytic reports on alt lternative measures of well ll- being ( The Well ll-being of Nations , 2000; Society at a Gla lance , 2006) • Several l OECD World ld Fora (Palermo, Istanbul, Busan and Delhi) and regional conferences (Africa, Asia, Latin America, Europe)
Strong momentu tum a and global resonance An increasing number of initiatives to move ‘ beyond GDP ’: – UNDP Human Development Reports – Sti tiglitz-Sen-Fitoussi report – EU 2020 and communication – UN Resolution calling for “ holistic approach to to development ” to promote sustainable happiness and well - being – Rio+20 “The Future We Want” declaration, June 2012 – Many national initi tiatives fo for measuring well-being in all countries of the world….
The g global reach of the w well-being agenda
The O OECD Better L Life Initiative
OECD@50 : : the O OECD Better L Life Initiative: Your Better Lif ife How’ Life? Index Measures, analy lysis is and fu futu ture sta tati tisti tical agenda on what matt tters most t in in people’s life OECD@50 : : Better Poli licies fo for Better Liv ives
The O OECD well-being framework OECD well-bein ing fr framework: People rather than economic system Outcomes rather than inputs and outputs Both averages and in inequalities Both objective and subjective aspects Attributes of both in individuals and communities Both ‘here & now’ and ‘elsewhere & later’
Measurement a approach Rele levance of f in indic icators - face-validity - easily understood, unambiguous interpretation - amenable to policy changes - possibility of disaggregation by population groups Quality of f supportin ing 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 Sig ignif ificant documentatio ion and testin ing
Comparin ing the Better Lif ife Init itia iativ ive to NZ Treasury 'L 'Liv iving Standards Framework' OECD well-bein ing dim imensions NZL Treasury’s Indicators for Measuring Liv iving Sta tandards In Indiv ividual w well ll-bein ing • Income • Wealth • Employment • Leisure • Education/Skills • Health • Trust • Security • Environment • Subjective well-being Treasury’s Living Standards Framework Susta tain inabil ility ty of f well ll-bein ing over ti time 14
Comparing th the Better Lif ife In Init itia iati tive to to Measurin ing NZ Pro rogress to towards Sustainable Development Measuring New Zealand’s Progress Using a OECD well ll-being dimensions Sustainable Development Approach In Indiv ividual w well ll-bein ing • Population • Biodiversity • Air and atmosphere • Water • Land use • Energy • Transport • Waste • Innovation • Work, knowledge and skills • Economic resilience • Living conditions • Health • Social connections • Governance Susta tain inabil ility ty of f well ll-bein ing over ti time • Culture and identity
Selected results f from How’s Life? 2011 2011 • Life in 2011 better on average in the OECD than fifteen years ago • Inequalities in all ll dimensions of well-being • No country is a champion in well-being but some trends do emerge • Men do better in economic dimensions of well- being while women do better in non-economic ones
Inequalities i in e economic w well-being... 0.50 Levels of income inequality (Gini coefficient) in OECD countries, around 2010 0.45 0.40 0.35 0.30 0.25 0.20 Source: OECD Income distribution and poverty database
…and in non -economic aspects of well ll-being, e.g .g. Health ... % of population reporting good or very good health status Source:OECD Health Data; European Union Statistics on Income and Living Conditions (EU-SILC)
... Social ties... % of OECD population being able to rely on friends in case of need 95 90 85 80 75 70 65 Primary Secondary Tertiary 1 2 3 4 5 Axis Title Incomequintile Education Source:OECD Society at a Gance; Gallup World Poll
...and Housing Housing cost overburden rate by in income quin intile, 2009 Source: EU SILC
No country i is the c champion o of well-being 60% Australia 20% top performers 50% Switzerland New Zealand Norway 60% middle performers Iceland Netherlands 20% bottom performers United States 40% Denmark Canada Luxembourg Sweden 30% Ireland Belgium Japan United Kingdom Korea Israel Spain 20% France Germany Austria Finland Poland Russian federation Czech Republic Slovak Republic Slovenia 10% Brazil Portugal Greece Chile Italy Hungary 0% 0% 10% 20% 30% 40% 50% 60% Poor performance, percentage of red lights Source : OECD calculations
How’s life for the average NZ household? Income and wealth 10.00 9.00 Subjective well-being Jobs and earnings 8.00 7.00 6.00 5.00 Personal security Housing 4.00 3.00 2.00 Australia 1.00 OECD 0.00 New Zealand Environmental quality Work and life balance United Kingdom Civic engagement and Health status governance Social connections Education and skills Source : OECD calculations
How do women and men compare in NZ? Jobs and Jobs and earnings earnings 10.00 10.00 Subjective Subjective Housing Housing 8.00 well-being 8.00 well-being 6.00 6.00 Personal Work and life 4.00 Personal Work and life 4.00 security balance security balance 2.00 2.00 0.00 0.00 Environment Environmental Health status Health status al quality quality Civic Civic Education Education and engagement engagement and skills skills and … and … Social Social New Zealand_F connections connections OECD_F New Zealand_M OECD_M Source : OECD calculations
Socio-economic inequali lities in New Zeala land Income and wealth Income and wealth 10.00 Subjective well- 9.00 9.00 Jobs and earnings being 8.00 8.00 Subjective well-being Jobs and earnings 7.00 7.00 6.00 6.00 5.00 Personal security Housing 5.00 4.00 Personal security 4.00 Housing 3.00 3.00 2.00 1.00 2.00 0.00 1.00 Environmental Work and life 0.00 quality balance Environmental quality Work and life balance Civic engagement Health status and governance Civic engagement and Health status governance Social Education and connections skills OECD_High income New Zealand_High Income Social connections Education and skills OECD_Low income New Zealand_Low Income Source : OECD calculations
Understanding people’s aspirations: Your Better Life Index
Your Better Life Index
to people ? What matters most to Global gender distribution 39% female male 61% Weights given by users (in %) 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% Source : OECD calculations
The g global well-being agenda: key messages f from 4 4 th th OECD World Forum, N New Delhi, O October 2012
Where do we stand on the glo lobal well ll-being agenda ? • The 4th th OECD World Forum, , New Delhi, 16-19 Octo tober • Theme: Measuring well-being for development t and polic icymaking • Gath thered 1000 participants ts and a wid ide range of sta takeholders • Brought t to togeth ther perspectives from developing, emerging and developed countr tries • Combined expertise from a range of dis isciplines
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