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The starting point in France: the Stiglitz report

Beyond GDP, quality of life and sustainable development: implementing new measurements in France Measuring Well-Being and Fostering the Progress of Societies – OECD 26-28 June. The starting point in France: the Stiglitz report. 1) Implementing the Stiglitz report in France (from sept. 2009)

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The starting point in France: the Stiglitz report

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  1. Beyond GDP, quality of life and sustainable development: implementing new measurements in FranceMeasuring Well-Being and Fostering the Progress of Societies – OECD 26-28 June

  2. The starting point in France: the Stiglitz report 1) Implementing the Stiglitz report in France (from sept. 2009) • Beyond GDP • Quality of life: • Capabilities (Drivers) • Subjective well-being • Appreciation of personal activities • Sustainable development 2) Playing an active role in different initiatives at international level on the progress of societies and quality of life • Eurostat-Insee sponsorship with 4 Task Forces • Participation in OECD Working Groups Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  3. 1 -Beyond GDP: adopting the point of view of households 1) Publication of Gross Disposable Income per Consumption Units 2) Household Accounts by category of households • Categories: standard of living, age, type of household, profession, size of urban zone • Household accounts: • Income, • Consumption, • Saving • Personal Wealth • Reconciliation between National Accounts and household surveys (income/SILC, budget, housing, health, personal wealth) for 2003 Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  4. 1.1 - Beyond GDP : Inequalities between households in the national accounts The saving rate increases with relative income level Saving, in % of disposable income Average savings rate: 17% Income quintile Two estimates depending on the adjustments made on the information collected in the Household Budget Survey concerning income Scope: ordinary households resident in mainland France, excl. FISIM. Source: Insee, national accounts 2003, SILC 2004, Tax income 2003, Family Budget 2006, Housing 2002, Health 2002-2003 surveys. Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  5. 1.1- Beyond GDP: net Wealth by age (average amounts per household in euros) Age Source : Insee, National Accounts 2003, base 2005, and Wealth Survey 2003 Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  6. 1.2 - Beyond GDP:Valuing home-made services 3) Valuing home-made services (non-market activities) • The source used: Time Use Survey • Households declare their personal activities every 10 minutes on a diary (description of the activity, duration of the activity) • Valuation: • Selection of home-made services (child care, cooking, etc.) • What definition: « Semi-leisure » (DIY, gardening) or commuting ? • Calculation of the times devoted to these services • Between 15 to 27 hours a week: 42 to 77 billions of hours in France in 2010, ie twice the amount devoted to paid work • Valuation with a hourly rate, ideally with the marginal willingness to pay. With the minimum wage: 19 to 35% of the French GDP • Women: 60 to 72% of the value of home-made services • Weak reduction of income inequalities Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  7. 2.1 - Quality of life (capabilities): synthetic indicators by dimension • Using existing variables in surveys, mainly EU-SILC (French survey) • Computation of scores by addition of binary items (deprivations) in the same dimension (method used for deprivations) • A person cumulating many privations has a poor quality of life in the corresponding dimension: • the indicator equals « 1 » when the score exceeds a given threshold • … with the question of the determination of the level of the threshold • About 10% of the individuals Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  8. 2.1 - Quality of life (capabilities): comparison by income quartile Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  9. 2.2 - Subjective well-being • 1) Pilot Survey on (capabilities and subjective aspects of) quality of life (paper/web) • 10 000 persons persons 18 years or more - response rate : 38 % • Covering almost all “Stiglitz” dimensions • To determine at-risk populations • To go fast: data collection during summer 2011 and first results at the end of 2011 • An analysis of the results will be published very soon by Insee Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  10. 2.2 - Subjective well-being • 2) EU-SILC as from 2010 • Introduction of new questions • On a scale from 0 (not at all satisfied) to 10 (very satisfied), rate your satisfaction concerning: • -Your dwelling • -Your job (if employed) • -Your leisure • -Your relations with close relatives • -Your current life • A more detailed drop-off questionnaire for 2 000 households Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  11. 2.2 - Subjective well-being: average life-satisfactionby living standard Satisfaction level Equivalised income decile Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  12. 2.2 - Subjective well-being:average life-satisfactionby number of material difficulties experienced Satisfaction level Number of material difficulties Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  13. 2.3 - Appreciation of activities: the French 2010 Time-Use Survey • Time Use Survey 2009-2010: • A new variable added in the diary, for a subset of the household sample (1 700 respondents): • the affect i.e. the pleasant or unpleasant character of the activity (a scale from -3 to +3) • Each person surveyed should give his/her appreciation of the present activity in his/her diary (description of activities every 10 minutes during 24 or 48 hours): Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  14. 2.3 - Appreciation of activities Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  15. 4 - Sustainable development The carbon footprint for a French inhabitant is 40 % higher than the emissions in the national territory alone In millions of tonnes of CO2 8.9 tonnes of CO2 per person 6.4 tonnes of CO2 per person Emission associated with net imports (excluding re-exported imports):250 Emission associated with exports (excluding re-export imports): 95 Emissions from national output to satisfy domestic demand:179 Emissions from national output to satisfy domestic demand:179 Direct household emissions (cars and heating): 123 Direct household emissions (cars and heating):123 Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  16. 4 - Sustainable development CO2 emissions are the highest for the richest But CO2 emissions by euro spent is on average lower for the richest Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  17. Insee 18 bd Adolphe-Pinard 75675 Paris Cedex 14 www.insee.fr Thank you for your attention ! Contact Mr Jean-Louis Lhéritier Mail: jean-louis.lheritier@insee.fr

  18. 1.1 - Beyond GDP: inequalities between households in the national accounts Social transfers in kind reduce inequalities % of primary income Income quintile Source: National Accounts, Base 2000, Insee, 2003 Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  19. EU-SILC: treatment of individual effects (not yet achieved) • Individual effects: non observable variables (level of optimism, of risk aversion, of confidence in others, in the personal scales …) • EU-SILC is a longitudinal survey: in France, the same households are surveyed for 9 years running • This longitudinal dimension will permit to: • eliminate individual effects • give estimations on the consequences on life-satisfaction of a heath problem, a job loss, a divorce, a fall of income ... • We also drop off a self-administered questionnaire: • questions on attitude towards optimism, risk, trust in people, time preference … • anchoring vignettes: scenarios to compare the respondent to others (personal scales) Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  20. EU-SILC: an example of anchoring vignette on overall satisfaction of life • Jacques is 40 years old. He is a middle-school teacher. He lives with his wife, who is unemployed, and their three children in a small apartment in the suburbs, purchased with a mortgage. The neighbors are fairly noisy. Even if his children do not lack anything, it's not always easy to make ends meet. Jacques has no health problems, but he has trouble sleeping because he has a difficult class this year. • How would you rate Jacques's situation in terms of his life at the present time? (from 0 is the least favorable situation, and 10 the most favorable situation.) Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  21. 2.2 - Subjective well-being:Overall life-satisfaction (mean: 7/10) Beyond GDP, quality of life, sustainable development: implementing new measurements in France

  22. 2.3 - Questionnaire of the French Time-Use Survey for 2010 Beyond GDP, quality of life, sustainable development: implementing new measurements in France

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