Social Impact Investing

SOCIAL IMPACT INVESTMENT: BUILDING THE EVIDENCE BASE
Figure 5.1: One in 20 over 60’s have dementia, on average one in 8 over 65’s are subject to long-term care, and
in the next 30 years rates the support ratio for older people will halve
Panel A: Population aged 65 years and over receiving long-term
care, 2011 (or nearest year) and prevalence of dementia among
the population aged 60 years and over, 2009
Panel B: Over 65 population as a ratio of working age population
(15-64)
Note: For long-term care estimates, data is missing for the United Kingdom, and is for different dates in other countries (Japan (2006),
United States (2007), Canada (2009), and France (2010)). The long-term care OECD average is for 21 countries (see online data
annex). For prevelance of Dementia, OECD average is for 34 countries.
Source: OECD Health Statistics 2013 (OECD, 2013d), (http://dx.doi.org/10.1787/health-data-en and citing Wimo et al [2012] for
dementia estimates) and Society at a Glance, (OECD, 2014b).
5.2.1.2 Unemployment, inactivity and school drop-outs
5.10 Helping people into good quality and secure employment is critical for a range of desirable social
outcomes today and in the future. Today, the private and public social gains from employment include a
reduction in household poverty – and the improved quality of life this brings – increases in productivity,
and reductions in benefit dependency. For tomorrow, employment is critical for building the social
contributions needed to pay for a person’s own pension and elderly care, as well as for tax contributions
that fund much of the present public social spending in the areas of health, education, and social protection
among others. Helping youth into quality employment or stay in education settings is the foundation for
success in this area, as well as a healthy economy and society.
5.11 Table 5.1 presents experiences of long-term unemployment spells, unemployment rates for older
workers, education drop-out rates for older youth, and rates of inactivity in youth (NEET – "not in
education, employment or training") in younger and older cohorts. Percentage point movements up or
down in the past five years are presented in parentheses, where available. Altogether, the data highlight
need, and to a degree a lack of effective policy development, in present social ‘activation’ systems: two
factors which would indicate demand for SII-type innovation in this sector.
5.12 More specifically, many country systems are struggling to produce effective employment or
‘activation’ outcomes in older youth cohorts, and, with the exception of Germany, people who are
unemployed are facing much greater challenges in returning to work now than they did 5 years previously
(Italy and Japan have notable challenges to contend with here, and across the OECD as a whole the rate of
longer term unemployment has increased by 50% in 5 years).
60 © OECD 2015