A three-dimensional measure of inclusive growth in regions

This chapter proposes a measure of inclusive growth that integrates the income dimension with non-income outcomes, jobs and health, and takes into account the distribution of income among different household groups. Following the OECD inclusive growth framework, this summary measure of welfare – expressed in monetary terms and called multidimensional living standards – is applied to 209 OECD regions covering the period 2003-12. This is the first time that such data have been collected and analysed in this way at subnational level. The chapter describes levels and trends of multidimensional living standards in regions focusing on three aspects. It first looks at whether the different components of living standards reinforce each other in regions second, it analyses whether economic growth in regions translates into higher multidimensional living standards finally, the chapter explores whether living standards have followed different trends in metropolitan regions compared with the other parts of a country.