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Presentation on Regional OECD Well-being made at the conference "How to recover from the crisis. Cities, communities and smart specialisations" held in Padua, Italy 11-13 September 2014, by Paolo Veneri, Economist (Rural-Urban Linkages) Regional Development Policy Division. For more information please see www.oecd.org/regional/how-is-life-in-your-region.htm
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HOW’S LIFE IN YOUR REGION?
Measuring local & regional well-
being for policymaking
12 September 2014
Outline
2
1. OECD project on regional well-being: basic information
2. Why look at well-being at local and regional level?
3. A framework for measuring regional well-being- which dimensions- which indicators
3. Using well-being metrics for policy-making
4. The way forward in measuring well-being in regions and cities
OECD project on measuring regional well-being
Create a national indicator of Better Life based on 11 dimensions of well-being according to the preferences of each user
Work on regional inequalities in 2,000 regions and 275 metropolitan areas in OECD
A common analytical
framework to measure the well-being regionally
An interactive Web site to
compare welfare in 362 OECD
regions from 9 dimensions
Case studies in 7 selected OECD
regions
Guidelines to assist all levels of government
to use the indicators of well-being
&
Why look at well-being at local and regional level? (1/3)
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• Not only bridging national & regional data but also contributing to policymaking. Top-down or bottom-up approach?
Measuring well-being for policy making is essentially a bottom-up approach.However, a general framework is needed (can be top-down)
The OECD provides:- A common framework and guidelines on indicators (e.g. common set of
indicators) – Measuring the right things
- Guidelines on how to implement the use of well-being in policy making (built bottom-up) – Using indicators
People’s well-beingMaterial living conditions (e.g. jobs, income)
Individual characteristicse.g. family, education, skills
Place-based factorse.g. regional labour pool, training, etc.
= +
• Well-being of people is affected by place-based characteristics
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• Key dimensions for people’s well-being have strong regional variations
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10
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60
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NLD
DN
K
NO
R
NZ
L
IRL
JPN
ISR
SW
E
AU
S
GB
R
DE
U
AU
T
CH
L
SV
N
CA
N
SW
E
FIN
HU
N
CZ
E
GR
C
FR
A
TU
R
US
A
SV
K
PR
T
BE
L
PO
L
ES
P
ITA
Country value Regional values
e.g. Regional differences in youth unemployment rates, 2013 (Figure)
Why look at well-being at local and regional level? (2/3)
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• Regional disparities in several well-being outcomes come together with lower well-being performance at the national level.
Why look at well-being at local and regional level? (3/3)
AUS
AUT
BEL
CAN
CHE
CHL
CZE
DEU
DNK
ESP
EST
FIN
FRA GBR
GRC
HUN
IRLISL
ISR
ITAJPN
KOR
LUX
MEX
NLD
NOR
NZL
POL
PRT
SVKSVN
SWE
TUR
USA
0.00
2.00
4.00
6.00
8.00
10.00
1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40
Aver
age
inco
me
(sco
res)
Regional disparities in income
Income
AUT
BEL
CAN
CHE
CHL
CZE
DEU
ESP
ESTFIN
FRA
GBR
GRC
HUN
ISR
ITA
JPN
KOR MEX
NZL
POLPRT
SVK
SWE
TUR
USA
0.00
2.00
4.00
6.00
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10.00
1 2 3 4 5 6
Aver
age
jobs
out
com
es (s
core
s)Regional disparities in jobs outcomes
Jobs
AUS
AUT
BEL
CAN
CHL
CZEDEU
DNK
ESP
ESTFIN
FRA
GRC
IRL
ISLITA
JPNKORLUX
MEX
NLDNZL
PRT TUR
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
1.00 1.20 1.40 1.60 1.80 2.00
Aver
age
educ
ation
out
com
es (s
core
s)
Regional disparities in education outcomes
Education
AUS
CAN
CHL
CZEESP
EST
FINGBR
GRC
ISL
ISR
ITA
JPN
KOR
MEX
NLD
POL PRT
SVN
TUR
USA
0.00
2.00
4.00
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1 1.5 2 2.5 3 3.5Aver
age
acce
ss t
o se
rvice
s (s
ocre
s)
Regional disparities in access to services
Access to services
Fig. Regional disparities and well-being levels in OECD countries, 2013
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A framework for measuring regional well-being (1/4)
A regional well-being conceptual frameworkMain features :
• Measures well-being where people live
• Focus on outcomes rather than output
• Multidimensionality (9 dimensions: material conditions and quality of life)
• Focus on distributions of outcomes
• Look at complementarity across dimensions
• Assess how well-being changes over time (resilience, sustainability)
• It considers that well-being can be manageable to change by citizens, governance and institutions
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• A multidimensional set of indicators
A framework for measuring regional well-being (2/4)
Dimensions Regional indicators
Material
condition
s
Income Income levels: Mean and median household market and disposable income Income distribution: Gini index and Quintile share ratio (S80/S20) for disposable and market income Relative poverty: Headcount ratios for disposable and market income, with national and regional poverty lines
Jobs Employment rate and part-time employment Unemployment, Long-term unemployment and Youth unemployment Women participation rate
Housing Number of room per person
Quality of life
Health status Life expectancy at birth Age adjusted mortality rate
Education and skills Educational attainments Competence of 15-year old students (PISA) [only few countries]
Environmental quality
Air quality (PM2.5) Loss of forest and vegetation Municipal waste recycled [only few countries] Access to green space
Personal security Homicide rate Car theft rate Mortality due to transport accidents
Civic engagement Voter turnout Accessibility to services
Broadband connection Unmet medical needs Share of people having access to public transport (only few countries) Average distance and travel time from the closest hospital (only few countries)
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• Looking at complementarities across dimensions:
Cross-dimensional indicators consist in combining two well-being dimensions, where the first is measured along the distribution of the second one
A framework for measuring regional well-being (3/4)
Indicator Well-being dimensions consideredShare of students in primary education with no access to food Education – IncomeShare of households that devote 30% or more of their income to energy consumption
Income – Environment
Share of households which cannot afford to keep the house sufficiently warm Income – HousingShare of individuals with no more than lower secondary education whose health status limits their activities
Health – Education
Share of individuals with a low level of education who report problems related to crime in the area where they live
Crime – Education
Health status of long-term unemployed Health – EmploymentUnmet medical need among individuals with limited education levels Health – EducationShare of individuals with limited education levels in long-term unemployment Education – Employment
10
A framework for measuring regional well-being (4/4)
Looking at distributional aspects - Income distribution
• Regional differences between regions can be high, but inequalities within regions are higher than between regions
• Income inequalities are on average higher in large cities
11
OECD
Southern Denmark (DK
)
Province of Rome (Italy)
Sardinia (Italy)
Morelos (MX)
North of the
Netherlan
ds (NL)
Newcastl
e (UK)
US Partnership for
Sustainable
Communities
TOTAL
Dimensions covered by the OECD How’s Life in Your Region? framework
Income X X X X X 5Jobs X X X X X X X 7Housing X X X 3Education X X X X X X 6Health X X X X X X 6Environment X X X X X X X 7Safety X X X 3Civic engagement X X X X 4Access to services X X X X X 5
Additional dimensions covered by the OECD Better Life Index at national level
Social connections X X X 4
Subjective well-being
X X X X 4
Work-life balance X 1
Using regional well-being metrics for policy making (1/4)
Many regions are trying to design and implement a well-being strategy• Seven case-study regions having well-being initiatives in place participated in the project.• Each initiative covers different well-being dimensions
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Translate well-being objectives into policy-relevant
indicators
Select indicators
Identify baselinesand expected results
Monitor progress and potential of places
Foster citizen engagement
and communication
Information, consultation
and participation
Using regional well-being metrics for policy making (2/4)
The starting point of this well‑being measurement cycle varies across regions, according to the specific objective of measuring well-being and who is leading the process.
Regional well-being measurement cycle: A possible sequencing of steps
Using regional well-being metrics for policy making (3/4)
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Stakeholders involved in implementing regional well-being initiatives
1
Elected politicians
(hold decision-makingpower)
Civil society, citizens, non-governmentalorganisations
(provide inputs on expected results and how to achievethem; public monitoring of results)
Scientific community
(translate objectives into indicators and targets; help evaluate trends and impact)
Private sector, business associations, labour unions, institutional stakeholders
(check policy consistency and support for change)
Civil servants
(make policyobjectives explicit)
• Implementing this process of well-being metrics requires the involvement of relevant stakeholders and constructive interaction among them (e.g. coordination between levels of governments)
• Need to achieve continuity beyond political cycles
Using regional well-being metrics for policy making (4/4)
A web-tool for an user-friendly visualisation of well-being conditions in OECD regions has been released in the Summer
www.oecdregionalwellbeing.org
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The way forward in measuring well-being in regions and cities
Helping national and sub-national policy makers develop a well-being strategy
1) Fostering the statistical agenda• Improving the measurement of different well-being dimensions• Measuring additional well-being dimensions• Individual-level measures of inequality in well-being (not only for income)• New data production methods for metropolitan areas
2) Well-being reviews (country, regional or metropolitan approach) to help policy makers..• Develop regional well being metrics that captures people’s daily experience• Using well-being metrics in their policy cycle (complementarities, coordination, etc)• Encourage citizens to adapt well being measurement to their needs
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Contacts:[email protected]
Final report to be launched on 6th October 2014 in Brussels
Thank you!
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