A UK Perspective of Measuring Subjective Well-being

Glenn EverettDirector of the Measuring National Well-being Programme11 March 2014

www.ons.gov.uk/well-being

Background

• Traditional measures of progress such as GDP are increasingly considered an incomplete picture of the state of the nation.

• Additional economic, social and environmental measures are needed alongside GDP to provide a complete picture of how society is doing.

• UK’s Measuring National Well-being (MNW) Programme was launched in November 2010.

• Stiglitz et al “the time is ripe for our measurement system to shift emphasis from measuring economic production to measuring people’s well-being”.

Domains of National Well-being

Sustainability Issues over time

Equality/Fairness

More contextual domains

The Economy

Governance

Education and skills

Natural Environment

Factors directly affecting individual well-being

Personal Finance

Our relationships What we doWhere we live

Health

Individual Well-BeingPeople’s own Assessment of their

own well-being (SWB)

UK’s Approach to Measuring National Well-being• Using many existing sources (around 21) to populate the

Domains.

• Added 4 questions on subjective well-being to household surveys.

• Findings analysed alongside other information to help understand impact on well-being.

ONS’ Four Subjective Well-being Questions1. Overall, how satisfied are you with your life nowadays?

(Evaluative)

2. Overall, to what extent do you feel the things you do in your life are worthwhile? (Eudemonic)

3. Overall, how happy did you feel yesterday? (Experience or affect - positive)

4. Overall, how anxious did you feel yesterday? (Experience or affect - negative)

All answered using a 0 to 10 scale where 0 is ‘not at all’ and 10 is ‘completely’

Overall change between 2011/12 & 2012/13

Overall change between 2011/12 & 2012/13

Overall change between 2011/12 & 2012/13

Overall change between 2011/12 & 2012/13

Differences by age

• 45 to 54 rate life satisfaction, worthwhile and happiness levels lowest on average...

• ...and 65 to 79 age group highest.

• One reason for lower average for 80 & over could be loneliness.

Ethnicity

• Average life satisfaction highest amongst White and Indian people...

• ...but lowest for Black ethnic group.

United Kingdom Ratings Life

satisfaction WorthwhileWhite 7.5 7.7 7.3 3.0Gypsy, Traveller or Irish Traveller1 .. .. .. ..Mixed/Multiple ethnic groups 7.0 7.5 7.0 3.4Indian 7.5 7.7 7.4 3.3Pakistani 7.3 7.5 7.2 3.2Bangladeshi 7.2 7.5 7.3 3.1Chinese 7.4 7.4 7.4 3.0Any other Asian background 7.4 7.6 7.3 3.3Black/African/Caribbean/Black British 2 6.9 7.5 7.1 3.1Arab 7.1 7.1 6.7 3.3Other ethnic group 7.2 7.4 7.1 3.41 Sample sizes too small for reliable estimates.

Source: Annual Population Survey, Office for National Statistics

What is important to Subjective Well-being?Latest findings from regression analysis of subjective well-being found:• Self-reported health, employment status and relationship

status most important aspects of subjective well-being.

• Higher earnings don’t necessarily lead to higher feelings of happiness but do increase people’s life satisfaction.

• People in higher occupations or higher qualifications more anxious than lower occupations or qualifications.

• Choice important – people working in a job that they are content with have higher life satisfaction than those wanting an additional or different job.

Policy Appraisal

• It is important new measures are used to improve the development, implementation and evaluation of policies

• In July 2011 the Treasury updated the guidance on cost-benefit analysis to include an approach that uses subjective well-being measurement.

• Social cost-benefit analysis seeks to express the full social costs and full social benefits of policies in monetary terms.

• Such estimates can inform options, analysis and business cases.

How is well-being data used? • Dept of Health’s alcohol strategy against a consideration of national

well-being.

• Civil Service People survey - insights into staff well-being help steer HR policies.

• Dept of Work & Pensions is assessing impact on the well-being of the very-long-term unemployed.

• Cabinet Office is evaluating the impact of National Citizen Service on the well-being of participants.

• Berkeley Homes is using well-being as part of their evaluation of planning proposals.

Strengths/Limitations• Long-term development project – still learning – experimental

outputs.• Consider importance of distributions not just averages –

miserable minority.• Not a single measure – need both objective and subjective

data.• Supplements – not supplants to GDP and other indicators.• Use for better targeting of scarce resources.• Complex – no composite indicator • Cost of surveys.

More information: www.ons.gov.uk/well-being.