How was life?
GDP and Beyond from 1820 onwards
Introduction by
Auke Rijpma (University of Utrecht)
Marcel Timmer (University of Groningen)
Cooperation of two projects
• OECD: Better Life Initiative: multi-dimensional
approach to well-being, resulting a.o. in the How’s
Life? report
• Clio Infra project, global network of economic
historians to measure various dimensions of longterm evolution of world economy 1500-2010.
• Led by Jan Luiten van Zanden (University of Utrecht)
Aim of cooperation
• Present state-of-the-art estimates on various dimensions
of development of well-being in world economy from
1820 to present (“GDP and beyond”)
• Contribute to the discussion about the broadening of
the welfare concept used to characterize socio-economic
development
• Indicate relevance of going “beyond GDP”, also in
historical analysis
• Publication of book “How Was Life” in Autumn 2014 by
the OECD, including extensive statistical database.
Dimensions covered in “How Was Life?” book
Dimension
Indicator(s)
Economic standard of living
GDP per capita
Inequality
Health Status
Income inequality; Real unskilled
wages
Life Expectancy; Height
Education and Skills
Educational attainment
Personal security
Homicide
Civic Engagement and Governance
Political institutions
Environmental Quality
SO2; CO2; Species abundance
Gender Inequality
Girl power index
Overall indicator of Well-Being
Composite indicator (experimental)
Coverage and Statistical Quality
• Data for 25 major countries and another 100+ since 1820.
• Important issue of quality of underlying sources
• Four levels of statistical quality indicated for each data point:
based on
– credibility of source,
– accuracy of methodology
– and comparability across countries and over time
• Regional and world averages based on population weights.
Some preliminary results
2000
2000
1.0
0.8
0.2
0.0
1950
2000
1.0
decade
Norm. ine
2000
1950
2000
Homicides
0.2
0.0
0.2
1950
1900
0.8
Polity2
0.0
1900
1850
Norm. edu
0.8
decade
1850
0.6
decade
1900
0.6
1.0
0.6
0.2
0.0
Norm. bio
1850
Norm. lif
Inc. ineq.
0.4
decade
0.6
0.4
0.2
0.0
1950
0.4
0.8
1950
0.8
Biodiv. (MSA)
1900
0.6
0.2
0.0
1900
Norm. hgt
0.8
1.0
Norm. lab
1850
0.4
decade
1850
Av. yrs edu.
0.4
2000
1.0
1950
0.6
1900
Life exp.
0.4
1850
decade
1.0
1.0
0.6
0.0
0.2
0.4
decade
0.6
0.4
0.0
0.2
decade
Stature
0.8
Real wages
0.8
1.0
World averages
1850
1900
1950
Norm. pol
2000
1850
1900
1950
Norm. hom
2000
2000
2000
1.0
0.8
0.2
0.0
1950
2000
1.0
decade
Norm. ine
2000
1950
2000
Homicides
0.2
0.0
0.2
1950
1900
0.8
Polity2
0.0
1900
1850
Norm. edu
0.8
decade
1850
0.6
decade
1900
0.6
1.0
0.6
0.2
0.0
Norm. bio
1850
Norm. lif
Inc. ineq.
0.4
decade
0.6
0.4
0.2
0.0
1950
0.4
0.8
1950
0.8
Biodiv. (MSA)
1900
0.6
0.2
0.0
1900
Norm. hgt
0.8
1.0
Norm. lab
1850
0.4
decade
1850
Av. yrs edu.
0.4
2000
1.0
1950
0.6
1900
Life exp.
0.4
1850
decade
1.0
1.0
0.6
0.0
0.2
0.4
decade
0.6
0.4
0.0
0.2
decade
Stature
0.8
Real wages
0.8
1.0
W. European averages
1850
1900
1950
Norm. pol
2000
1850
1900
1950
Norm. hom
2000
2000
2000
1.0
0.8
0.2
0.0
1950
2000
1.0
decade
Norm. ine
2000
1950
2000
Homicides
0.2
0.0
0.2
1950
1900
0.8
Polity2
0.0
1900
1850
Norm. edu
0.8
decade
1850
0.6
decade
1900
0.6
1.0
0.6
0.2
0.0
Norm. bio
1850
Norm. lif
Inc. ineq.
0.4
decade
0.6
0.4
0.2
0.0
1950
0.4
0.8
1950
0.8
Biodiv. (MSA)
1900
0.6
0.2
0.0
1900
Norm. hgt
0.8
1.0
Norm. lab
1850
0.4
decade
1850
Av. yrs edu.
0.4
2000
1.0
1950
0.6
1900
Life exp.
0.4
1850
decade
1.0
1.0
0.6
0.0
0.2
0.4
decade
0.6
0.4
0.0
0.2
decade
Stature
0.8
Real wages
0.8
1.0
East Asian averages (incl. China)
1850
1900
1950
Norm. pol
2000
1850
1900
1950
Norm. hom
2000
1960
1980
2000
45
35
25
1960
1980
2000
South and South−East Asia
1960
1980
2000
1940
1960
1980
2000
1940
1960
1980
2000
2000
1920
1940
1960
1980
2000
World
25
35
45
55
W. Offshoots
35
1920
1980
35
1920
25
25
35
45
55
W. Europe
1960
Sub−Saharan Africa
55
1940
1940
45
1920
1920
25
35
45
55
1940
25
25
35
45
55
MENA
1920
45
1940
Latin America and Carib.
55
55
45
35
1920
Gini coef.
East. Europe and form. SU
25
25
35
45
55
East Asia
55
Within-country income inequality
1920
1940
1960
year
1980
2000
1920
1940
1960
1980
2000
50
40
30
20
Income ine. (Gini)
60
70
Within-country income inequality
200
500
1000
2000
pcGDP
5000
10000
20000
GDP/c & life expectancy
80
2000
70
1970
60
50
1910
30
40
18201870
20
Life exp. (years)
1930
0
5000
10000
15000
pcGDP
20000
25000
30000
0.10
1970
0.05
1930
1910
2000
1870
1820
0.00
ton SO2/cap
0.15
0.20
GDP/c & SO2 emissions
0
5000
10000
15000
pcGDP
20000
25000
30000
4
3
2000
2
1970
1
1930
1910
1870
1820
0
kton C/cap
5
6
7
GDP/c & CO2 emissions
0
5000
10000
15000
pcGDP
20000
25000
30000
GDP/c & democracy <1920
20
1910
1900
10
1840
1830
5
1860
1870
1850
1820
0
Polity2
15
1890
1880
0
5000
10000
15000
pcGDP
20000
25000
30000
GDP/c & democracy >1910
20
1920
1930
1940
1950
1990
1980
1960
2000
10
5
0
Polity2
15
1970
0
5000
10000
15000
pcGDP
20000
25000
30000
5000
10000
China
India
Great Britain
0
pcGDP
20000
“Great divergence”
1850
1900
decade
1950
2000
4
0
1
2
3
China
India
Great Britain
−1
Std. pcGDP, Composite indicator
“Great divergence”
1850
1900
decade
1950
2000
Some preliminary results
• In general very strong correlation of each indicator with GDP
per capita,
• Except for Inequality and Environmental quality domains
• For some indicators clear global trends (“technology”) as they
improve over time even without GDP per capita growth
• For some indicators notable exceptions for particular periods
in particular countries (“policies”)