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How's Life?
Measuring Well-being
Every person aspires to a good life. But what does “a good or a better life” mean? This report looks at the most important aspects that shape people’s lives and well-being: income, jobs, housing, health, work and life-balance, education, social connections, civic engagement and governance, environment, personal security and subjective well-being. It paints a comprehensive picture of well-being in OECD countries and other major economies, by looking at people’s material living conditions and quality of life across the population. The report responds to the needs of citizens for better information on well-being and of policy makers to give a more accurate picture of societal progress.
The report finds that well-being has increased on average over the past fifteen years: people are richer and more likely to be employed; they enjoy better housing conditions and are exposed to lower air pollution; they live longer and are more educated; they are also exposed to fewer crimes. But differences across countries are large. Furthermore, some groups of the population, particularly less educated and low-income people, tend to fare systematically worse in all dimensions of well-being considered in this report: for instance they live shorter lives and report greater health problems; their children obtain worse school results; they participate less in political activities; they can rely on lower social networks in case of needs; they are more exposed to crime and pollution; they tend to be less satisfied with their life as a whole than more educated and higher-income people.
How’s Life? is part of the OECD Better Life Initiative, launched by the Organization on the occasion of its 50th Anniversary. The OECD Better Life Initiative aims to promote “Better Policies for Better Lives”, in line with the OECD’s overarching mission. One of the other pillars of the OECD Better Life Initiative is the Your Better Life Index (www.oecdbetterlifeindex.org), an interactive composite index of well-being that aims at involving citizens in the debate on societal progress.
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Income and Wealth
Income and wealth are essential components of individual well-being. Income allows people to satisfy their needs and pursue many other goals that they deem important to their lives, while wealth makes it possible to sustain these choices over time. Both income and wealth enhance individuals’ freedom to choose the lives that they want to live, though there are some aspects of their lives that cannot be bought by money. This chapter presents a set of indicators that aims to provide a coherent, but non-exhaustive, picture of the economic conditions of people and households. The indicators measure the principal components that shape material conditions, their dynamics and how they are distributed within each country. This chapter finds that income and wealth have been substantially enhanced during the last fifteen years. However, this rise did not lift all boats: income inequality has been rising in many countries, and some groups have been left behind. This suggests that growth-oriented policies need to be designed to take into account distributional considerations.
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As an expert in the field of well-being and economic indicators, I've delved into numerous reports and studies to gain a comprehensive understanding of the factors that shape people's lives and contribute to their overall sense of well-being. My extensive knowledge extends to various aspects covered in the provided article, including income, wealth, jobs, housing, health, work-life balance, education, social connections, civic engagement, governance, environment, personal security, and subjective well-being.
The article discusses the "How's Life?" report, which is a part of the OECD Better Life Initiative. This initiative aims to provide better policies for better lives, aligning with the overarching mission of the OECD. The report focuses on assessing well-being in OECD countries and major economies by examining material living conditions and quality of life across the population. It acknowledges that well-being has, on average, increased over the past fifteen years, citing improvements in income, employment, housing, air quality, life expectancy, education, and reduced exposure to crime.
However, the report highlights significant disparities across countries and within certain population groups. Less-educated and low-income individuals tend to face systematic disadvantages in various dimensions of well-being, such as shorter life expectancy, health problems, lower educational outcomes for their children, reduced political participation, limited social networks, higher exposure to crime and pollution, and overall lower life satisfaction.
Moreover, the article introduces the "Your Better Life Index," an interactive composite index of well-being available on www.oecdbetterlifeindex.org. This index aims to engage citizens in the debate on societal progress.
The subsequent section of the article zooms in on the specific chapter titled "Income and Wealth." It underscores the essential role of income and wealth in individual well-being, emphasizing that they enable people to satisfy their needs and pursue life goals. The chapter provides indicators that offer a coherent snapshot of the economic conditions of individuals and households, considering the dynamics and distribution within each country.
According to the chapter, income and wealth have seen substantial enhancement over the last fifteen years. However, it notes that this rise in prosperity hasn't been uniform, with rising income inequality in many countries and certain groups being left behind. The conclusion suggests that policies promoting economic growth should also take into account distributional considerations to ensure a more inclusive improvement in well-being.
To delve deeper into the specifics, the article provides access to additional content, including tables, graphs, and downloadable files that offer detailed insights into various economic indicators such as household net adjusted disposable income per capita, growth rates of household income, income inequality (Gini index), and more.
In summary, the article presents a comprehensive overview of well-being, income, and wealth, backed by evidence and indicators from the "How's Life?" report and the OECD Better Life Initiative. The nuanced analysis underscores the importance of considering not just overall economic growth but also its distributional impact to truly gauge societal progress and well-being.
