Where are the highest living standards? Measuring well-being and inclusiveness in OECD regions

This paper assesses the levels and trends in living standards across regions in Organisation for Economic Co-operation and Development (OECD) countries from the early 2000s to 2012. It applies a measure of welfare called multidimensional living standards (MDLS) at the regional level. The MDLS builds on the equivalent-income approach by combining monetary income with non-monetary (health and jobs) outcomes and taking into account how such outcomes are distributed amongst individuals. Results highlight that regional disparities are amplified when observed through an MDLS lens, as opposed to purely income-based regional disparities. The paper also shows that metropolitan residents experience, on average, higher levels of the MDLS and income than those in other regions.