All on Board

Making Inclusive Growth Happen

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All on Board: Making Inclusive Growth Happen puts forth a new approach to economic growth that goes beyond traditional monetary indicators and includes dimensions that reflect people's well-being. It introduces an analytical framework to assess economic growth based on a measurement of multidimensional living standards. The report also presents win-win policies that can deliver stronger growth and greater inclusiveness in areas such as: macroeconomic policies, labour market policies, education and skills, infrastructure and public services and development and urban policies. It underscores the need to assess and weigh trade-offs and complementarities between and among policies, and the crucial role of good governance in implementing an Inclusive Growth agenda.

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Towards a multidimensional framework for inclusive growth

What is behind the increase in inequalities? How have rising inequalities affected growth in living standards? Building on the OECD’s work on well-being, this chapter introduces an innovative analytical policy framework to examine the main drivers behind the rise of inequalities discussed in the preceding chapter. Proposing a novel measure of multidimensional living standards (comprising household disposable income, employment status, and longevity) the chapter identifies their growth for different segments of the population, and considers the impact of individual policies. The analysis shows that over the period immediately prior to the crisis, from 1995 to 2007, growth in multidimensional living standards across the OECD area was somewhat lower for the median household and the poor (those in the lowest decile) than for the “average” household.


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