Thursday, November 23, 2017

How’s Life in Greece, Italy, Germany, UK, and the US?

By Dr. Konstantinos Mantzaris November 23, 2017

The Organisation for Economic Co-operation and Development (OECD) recently published the "How's Life? 2017" book, which is part of the OECD Better Life Initiative. The findings about Greece, as a country with significant effects from the financial crisis, in comparison with Italy, Germany, the United Kingdom, and the United States of America, are very interesting.

The OECD Better Life Initiative features a range of studies and analysis about people’s well-being and how to measure it. What makes for a good life? Even if it is difficult to define, OECD managed to shape statistics reflecting both people’s material living conditions, and the quality of their lives. This includes how life is changing over time, how lives differ across different population groups, and whether today’s well‑being is achieved at the cost of depleting resources for the future. The financial crisis had a deep and long‑lasting impact for many countries, with the Greek state being at the top of the list. There are spotted many inequalities across the statistics, and this is noticeable in the following facts.

Relative to other OECD countries, Greece has a mixed performance across the different well-being dimensions. Material conditions in Greece are generally below the OECD average line. The average household net adjusted disposable income was just over half the OECD average level in 2015. In 2014, household net adjusted disposable income was 27% lower than in 2005, the largest fall in the OECD over the decade. The employment rate was 52% in 2016, compared to an OECD average of 67%. Greece also suffers from some of the highest levels of labour market insecurity, job strain and long-term unemployment in the OECD, but the share of Greeks working very long hours (7%) is below the OECD average rate (13%).

The employment rate in Italy, about 57% in 2016, was among the lowest in the OECD area, and in terms of labour market insecurity and long-term unemployment Italy ranks in the bottom third of the OECD. However, household net wealth is fairly close to the OECD average, and only around 4% of employees regularly work 50 hours or more per week, less than one-third of the OECD average rate. As for social support, 91% of the population in Italy report having friends or relatives whom they can count on in times of trouble, slightly above the OECD average of 89%.

At the other side, relative to other OECD countries, Germany performs well across most well-being dimensions. Household net adjusted disposable income is above the OECD average, but household net wealth is just below it. At 75%, the employment rate is well above the OECD average of 67%, and both average earnings and long-term unemployment are close to OECD average levels. Also, Germany benefits from one of the lowest levels of labour market insecurity in the OECD, and only one-third of German workers were affected by job strain in 2015. Personal security, social support, education and skills are generally all areas of strength, with only one-quarter of Germans feeling that they have a say in what the government does.

On average, the United Kingdom performs well across a number of well-being indicators relative to other OECD countries. At 74% in 2016, the employment rate is well above the OECD average (67%), while long-term unemployment is below the OECD average level (1.3% compared to 2% in 2016). However, household net adjusted disposable income and average earnings fall below the OECD average levels.

Finally, relative to other OECD countries, the United States performs well in terms of material living conditions: the average household net adjusted disposable income was the highest in the OECD in 2015, and the average American enjoys good housing conditions and a low long-term unemployment rate. However, work-life balance is an area of comparative weakness: over 11% of employees work very long hours, and full-time employees report having less time off than in most other OECD countries. Moreover, nearly 90% of the adult working-age population have attained at least an upper secondary education. However, the skills of both American adults and 15-year-olds are lower than the OECD averages.