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Title page 1

Contents 7

Foreword 4

Acknowledgements 5

Reader's guide 11

Executive summary 13

1. Inclusive growth and why it matters for cities 16

The relationship between inclusion and growth 17

Economic efficiency and equity in cities 20

The costs of inaction: inequality as a drag on the long-term economic growth of cities 24

The case for inclusive growth in cities 25

References 26

Notes 31

2. Trends and drivers of inclusive growth in cities 32

Introduction 33

Measuring inclusive growth in cities 33

Key trends: slowing growth and poverty risks 34

Inclusive growth drivers in cities: evidence by policy pillar 37

Context matters: different cities, different outcomes 42

References 50

Notes 54

3. Policies to drive inclusive growth in cities 55

Sectoral policy levers for inclusive growth in cities 56

Invest in education and skills from the earliest years 57

Build local labour markets that work for everyone 62

Expand affordable housing and create mixed, opportunity-rich neighbourhoods 68

Deliver public infrastructure and services with a focus on reaching those who need them most 74

Advance a just, green transition in cities 79

The need for integrated policies that bring together people-based and place-based approaches 81

References 88

Note 94

4. Key enabling factors for inclusive growth in cities 95

Introduction 96

Strategic approaches to drive inclusive growth across departments, levels of government and municipalities 97

Embedding participation: moving from consultation to co-design of inclusive growth policies 103

Generating and using granular data to identify, target and monitor inclusive growth in cities 108

Leveraging long-term financing for inclusive growth in cities to close investment gaps 110

Building the delivery capacity cities need to turn inclusive growth strategies into action 115

Monitoring, evaluating and modifying practices to improve inclusive growth outcomes in cities 118

Communicating and building durable political support for action on inclusive growth 120

References 121

5. A Roadmap for Inclusive Growth in Cities 126

Introduction 127

1. Diagnose: establish a robust evidence base to identify opportunity gaps within the city and underpin a shared diagnosis 128

2. Prioritise: focus on interventions with highest potential impact on inclusive growth outcomes 132

3. Mobilise: integrate initiatives and build partnerships for inclusive growth policy delivery 136

4. Implement: deliver people-centred and place-based integrated action on inclusive growth 139

5. Monitor, learn and adjust: sustain inclusive growth progress through evidence and adaptation 142

References 145

Annex A. What works for developing and implementing inclusive growth strategies in cities? Evidence from the OECD/EC survey 146

Tables 9

Table 1.1. Inclusive growth and other examples of models of economic development 20

Table 3.1. Cities use a range of tools to implement people-based approaches to inclusive growth 83

Table 5.1. Considering the structural context can help cities identify areas where policy interventions have the greatest impact 129

Figures 8

Figure 1.1. Income inequality in capital regions is often higher than the national average 21

Figure 1.2. Urban heat island (UHI) index and income in Lyon, France 23

Figure 1.3. Urban centre population without walking access to a green area in FUAs by income level of residents, 2024 24

Figure 2.1. Growth of real disposable incomes in large regions, 2014-18 and 2019-23 35

Figure 2.2. Life expectancy at birth by country and small region type, 2023 36

Figure 2.3. Female employment rate in OECD regions, 2023 levels relative to 2019 levels 38

Figure 2.4. At-risk-of-poverty rate after deducting housing costs by degree of urbanisation, 2023 40

Figure 2.5. Structural diversity of EU cities: distribution by population size, population dynamics and economic profile 44

Figure 2.6. City size, demographic trends and economic profile are correlated in the European Union 44

Figure 2.7. In EU FUAs, growth in labour force participation is associated with higher annual average growth of GDP per capita 45

Figure 2.8. Large cities have the highest share of tertiary educated working-age population 47

Figure 2.9. Growing cities have the strongest labour participation rates in most countries 48

Figure 2.10. Advanced-service and mixed-economy cities display highest levels of GDP per capita 49

Figure 3.1. Inclusive growth is driven by virtuous cycles of increased prosperity and social inclusion across policy pillars: an illustration 57

Figure 4.1. The Netherlands KansenKaart visualises neighbourhood level data on life chances 110

Figure 5.1. A five-stage roadmap to help cities foster inclusive growth from strategy through to implementation 128

Figure 5.2. Cities can prioritise initiatives which both close their opportunity gaps and have importance for their inclusive growth challenges 133

Boxes 9

Box 1.1. The OECD's work on inclusive growth 19

Box 2.1. Constructing the economic profile typology 43

Box 3.1. Barcelona, Spain: The Shock Plan Against School Segregation 60

Box 3.2. Helsinki, Finland: Free School Meals 61

Box 3.3. Rennes, France: The Local Plan for Inclusion and Employment 64

Box 3.4. Athens, Greece: Supporting those furthest from the labour market with the Job Centre 65

Box 3.5. Bologna, Italy: The Metropolitan Charter for Ethical Logistics 67

Box 3.6. Lisbon, Portugal: Providing permanent housing to end chronic homelessness 70

Box 3.7. Rome, Italy: The Integrated Urban Plan in Tor Bella Monaca 72

Box 3.8. Bilbao, Spain: Healthy ageing in place 73

Box 3.9. Okayama, Japan: The Sustainable Public Transport Network 75

Box 3.10. Camden, London, the United Kingdom: The Family Hubs Pregnancy Grant 76

Box 3.11. Madrid, Spain: The SociALMAdrid Digital Transformation Strategy 78

Box 3.12. Athens, Greece: The Energy Poverty Alleviation Office 80

Box 3.13. Bergamo, Italy: CAPACITyES 86

Box 4.1. Montreal, Canada: The Equity, Diversity and Inclusion and Anti-Racism Strategy 98

Box 4.2. EU frameworks as enablers of multilevel co-ordination for inclusive growth 100

Box 4.3. Tallinn, Estonia: A City Created Together participatory budgeting 104

Box 4.4. Turku, Finland: Youth-led climate initiatives 106

Box 4.5. Paris, France: The Parisian Pact Against Social Exclusion 107

Box 4.6. The role of EU Cohesion Policy funding to support inclusive growth 111

Box 4.7. Rotterdam, the Netherlands: Place-based impact investing 112

Box 4.8. France: "1 jeune, 1 mentor" mentoring programme 114

Box 4.9. Leeds, the United Kingdom: The Leeds Anchor Network mobilising major institutions to drive inclusive growth 116

Box 4.10. Key factors for successful M&E 119

Box 4.11. Effective storytelling for inclusive growth in cities 120

Box 5.1. Krakow, Poland: The Multiculturism and Migration Observatory 131

Box 5.2. Cluj-Napoca, Romania: Housing-First-Driven Desegregation 134

Box 5.3. Düsseldorf, Germany: Empowering citizen participation through Zukunft Quartier 138

Box 5.4. Brno, Czechia: The Rapid Re-Housing pilot for families with children 140

Box 5.5. France: Territories with Zero Long-Term Unemployed People 144

Annex Figures 8

Figure A A.1. Participating cities in the OECD survey: Inclusive Growth in Cities, Step 1, 2024 148

Figure A A.2. Survey responses by city size 148

Figure A A.3. Over half of surveyed cities have a dedicated inclusive growth strategy 149

Figure A A.4. Of the cities without a dedicated strategy, 29% target inclusive growth through other policy initiatives 149

Figure A A.5. Number of inclusive growth strategies or initiatives in cities by date of introduction 150

Figure A A.6. A majority of cities with a dedicated inclusive growth strategy have a specific team responsible for design and implementation 150

Figure A A.7. Responsibility for the design and implementation of inclusive growth strategies and initiatives is typically owned by a single department 151

Figure A A.8. Many cities rely on several sources of funding for inclusive growth strategies and policies 151

Figure A A.9. Most inclusive growth strategies and initiatives involve local communities and citizens 152

Figure A A.10. Cities use a variety of methods to involve stakeholders in their inclusive growth strategies and initiatives 153

Figure A A.11. Just over half of cities collaborate with other cities on inclusive growth through formal partnerships and knowledge sharing networks 153

Figure A A.12. Improving access to quality and inclusive education is the highest attention priority for cities 154

Figure A A.13. Youth and children are the most targeted marginalised or vulnerable population groups 155

Figure A A.14. Cities support marginalised and vulnerable groups mostly through targeted programmes and initiatives and partnerships with local organisations 155

Figure A A.15. Demographic shifts are the most cited challenge by cities in achieving their inclusive growth objectives 156

Figure A A.16. Most cities monitor and evaluate their strategies and initiatives on inclusive growth 157

Figure A A.17. Cities mostly evaluate their strategies and initiative through monitoring and evaluation mechanisms and regular reporting 157

Figure A A.18. Less than half of the cities have changed or updated their strategy or initiatives since they were launched 158

Figure A A.19. Main drivers leading to changes in inclusive growth strategies or initiatives are social inequalities and policy frameworks 158

Figure A A.20. Distribution of cities reporting at least one best practice by EU membership status 160

Figure A A.21. Distribution of cities reporting at least one best practice by size 160

Figure A A.22. Best practices by policy topics 160

Figure A A.23. Best practices by population group targeted 161

Annex Boxes 10

Box A A.1. The OECD/EC Inclusive Growth in Cities Survey - Steps 1 and 2 147

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