The chapter reviews the evidence on policy instruments that promote inclusive growth across the five pillars of the OECD Inclusive Growth in Cities framework. It highlights the need for an integrated approach that recognises policy complementarities and trade-offs in designing effective strategies. The chapter emphasises the importance of cross-sectoral approaches, combining people-based approaches to address cumulative disadvantages with place-based policies that target spatial inequalities within cities.
What Works for Inclusive Growth in Cities
Abstract
Driving inclusive growth in cities requires co-ordinated action across five core policy pillars – education, labour markets, housing and the built environment, public infrastructure and services, and climate action – helping to generate self-reinforcing cycles of economic opportunity and social inclusion.
Prioritising high-quality early childhood care, integrated family support and balanced school admission policies with a focus on disadvantaged areas and groups helps to mitigate spatial segregation and build foundational human capital.
Reconnecting vulnerable groups to quality employment demands localised school-to-work pathways, proactive outreach to protect groups such as youth, people with a migrant background and marginalised workers, and engaging with employers as partners in local skills systems.
Expanding access to affordable and quality housing in cities delivers both economic and social returns. Policy instruments such as inclusionary zoning can widen access to opportunity-rich neighbourhoods, while regulatory reforms help unlock housing development where needed. Integrating spatial planning with infrastructure investment can support sustainable neighbourhood regeneration and secure the right to stay in cities.
Supporting universal access to high quality public infrastructure, transport networks and digital services connects residents to key amenities and job opportunities, and bridges the divide between neighbourhoods within cities.
Integrating equity concerns within local climate action ensures that decarbonisation efforts and green space expansions protect, rather than displace or financially overburden vulnerable populations in cities.
Addressing inclusive growth challenges in cities requires integrated, cross-sectoral approaches that combine people-based interventions (targeting the specific needs and barriers of different population groups) with place-based strategies (that align action with the characteristics of particular neighbourhoods and local economies).
Strengthening inclusive growth in cities also requires shifting from short-term crisis management towards sustained preventative approaches and supporting individuals during key transitional life stages, while better integrating social programmes with investments in physical infrastructure.
Inclusive growth in cities can be addressed across five main policy pillars (OECD, 2016[1]): education; the labour market; housing and the built environment; public infrastructure and services; and fair climate action. When implemented effectively, inclusive growth strategies in cities can create self-reinforcing cycles of opportunity, which bridge social and economic policies to drive sustainable, long-term prosperity. An illustration of these virtuous cycles, and their role as longer-term drivers of inclusive growth, is highlighted in Figure 3.1 below.
To identify the most effective policies for inclusive growth in cities, this chapter draws on a structured review of evidence from across European Union (EU) and OECD countries. Policies were selected based on three main criteria. First criterion, the strength of evidence, prioritising interventions supported by robust impact evaluation, peer-reviewed research and high-quality institutional analysis, including from national evaluations, the European Commission and the OECD. Where such evidence is limited, as can often be the case with local inclusive growth policies, well-documented programme reporting was also considered, including case studies gathered through the OECD/EC surveys on inclusive growth in cities and from testimonials gathered through project events (OECD, 2026[2]; OECD, 2026[3]; OECD, 2026[4]). This was particularly relevant for ongoing interventions or those underway at a very local scale. Second, relevance to core policy pillars highlighted above (Figure 3.1) was considered with policies mapped across the five dimensions of inclusive growth in cities. Third, integrated people-based and place-based approaches were given particular weight, reflecting the strong body of literature emphasising the importance of cross-sectoral collaboration and tailoring interventions to different population groups and to local economic and social contexts (e.g. Barca (2009[5]), Rodríguez-Pose (2018[6])).
Education and skills development directly influence future access to jobs and subsequently household incomes, as well as the productivity levels of the cities where they live. They also have impact far beyond the labour market with educational attainment shaping individuals’ health, well-being, civil engagement and social mobility, while also contributing to innovation, economic growth and social cohesion (Mezzanotte, 2022[7]). Yet, significant disparities in educational attainment persist within cities, often mirroring broader socio-economic patterns. Children in socio-economically disadvantaged areas are more likely to attend schools which experience shortages of material resources (OECD, 2023[8]) and the effects compound over time: limited qualifications reduce employment prospects, while neighbourhood effects can further constrain job-finding networks and social mobility. Investing in high-quality, inclusive education from the earliest years is therefore not only a matter of social inclusion but one of the most effective ways cities can build the human capital that drives long-term economic growth and broadly shared prosperity.
Evidence from the OECD/EC survey on Inclusive Growth in Cities confirms the centrality of this policy area. Improving access to quality and inclusive education is the most widely prioritised domain, with 77% of respondent cities assigning it high policy attention (Annex A). The most impactful approaches address not only access to schooling but the quality, inclusiveness and supportive environment that enable children to succeed, particularly in disadvantaged neighbourhoods. The evidence presented below underscores the need for tailored, place-based education policies that respond to the spatial and social divides present within cities. Across all levers, teacher quality is a key enabler, with continuous professional development and support for inclusive teaching practices some of the most effective ways to improve learning outcomes and reduce disparities (European Commission, 2022[9]).
High quality early childhood education and care can deliver high returns and support disadvantaged children
Investing in early childhood education and care (ECEC) for children and youth generate particularly high social and economic returns by strengthening later educational achievement, employment outcomes and health, while reducing future social costs (Heckman, 2006[10]). It supports inclusive growth and social mobility while delivering high returns in terms of poverty reduction (European Commission, 2024[11]). High quality ECEC significantly boosts cognitive, language and socio-emotional development, with long-term effects on school readiness, attainment and adult outcomes with evidence suggesting that disadvantaged children benefit more than other groups from the intervention (European Commission, 2022[9]). For cities, expanding accessibility to ECEC, especially for disadvantaged children, is also very effective from a cost-benefit perspective with enduring returns to health, earnings and civic participation (European Commission, 2022[9]). Yet take-up remains unequal – for low-income families, costs can be prohibitive, or a lack of culturally adapted provision acts as a barrier for some families (OECD, 2025[12]).
Wraparound family support in the early years can have a long-lasting impact on reducing educational inequalities
There is strong evidence supporting joined-up, local family support services for the early years. The United Kingdom’s Sure Start Children’s Centres, introduced in 1999, provided locally adapted health, education and care for children up to five years old. Impact evaluations of the English programme showed children living near these centres experienced significantly improved educational outcomes into their teenage years, with the greatest benefits observed among children from disadvantaged backgrounds (Carneiro, Cattan and Ridpath, 2024[13]). Similarly, France’s Cités éducatives, introduced in 2014, offer a place-based model of integrated education and social support for children and young people in disadvantaged neighbourhoods. The national programme co-ordinated actors across education, social services, youth work and cultural sectors to tailor support to local needs and promote equal opportunities in priority neighbourhoods.
Several cities have pioneered neighbourhood responses. For instance, Rotterdam’s Children’s Zones in the Netherlands also take a joined-up, wraparound approach to family services, combining education with health, housing and social care interventions within a defined neighbourhood to support vulnerable children, drawing inspiration from the Harlem Children’s Zone (HCZ) in New York City, the United States. Evaluations of HCZ have demonstrated success closing achievement gaps in schools, with more than 1 550 HCZ scholars graduating from college since 2011, breaking cycles of intergenerational poverty (HCZ, 2025[14]).
Investing in inclusive mainstream education and targeted school support can benefit children with additional needs
Combined place-based and people-based education approaches help reduce spatial segregation of opportunity in cities. Within mainstream school systems, this includes directing additional resources and targeted support towards schools and neighbourhoods facing higher levels of socioeconomic disadvantage, while ensuring that children with additional needs including special educational needs (SEN) and migrant backgrounds can access high-quality support within mainstream classrooms (OECD, 2023[15]). Schools in disadvantaged areas are more likely to experience shortages of qualified teachers, specialist staff and learning resources, reinforcing educational inequalities between neighbourhoods (OECD, 2023[8]). Targeted investment in mainstream schools serving disadvantaged communities including teaching assistants, special educational needs coordinators, language support and wraparound services can therefore play an important role in supporting inclusion and educational attainment. Such investments can help ensure that students who face additional barriers receive timely and tailored support while remaining integrated within mainstream education settings (OECD, 2023[15]).
Evidence also suggests that inclusive mainstream education can improve long-term outcomes for children with SEN when accompanied by adequate support systems. In Norway, students with special educational needs who attended mainstream classes were significantly more likely to achieve economic independence than those in segregated settings (Myklebust and Ove Båtevik, 2005[16]). Across many OECD countries, education systems are increasingly shifting towards a more inclusive approach, with greater integration of students with SEN into mainstream schools where appropriate (Brussino, 2020[17]). Inclusive schooling can improve social integration, educational attainment and future labour-market outcomes, particularly when combined with early intervention and support (Mezzanotte, 2022[7]). However, inclusion alone is insufficient without adequate teacher training, specialist staff, accessible infrastructure and tailored learning support (OECD, 2023[15]). As such, an effective and cost-efficient policy response for cities is not only to expand mainstream, non-segregated schools, but to strengthen the support systems that enable successful inclusion, including improved accessibility and allocation of support services to integrate students with SEN into mainstream classrooms (European Commission, 2023[18]).
Balanced school admission and catchment area policies can reduce educational segregation School catchment areas can often reflect spatial segregation within cities, resulting in concentrations of disadvantage in certain neighbourhoods and schools. Social segregation across schools deprives children of opportunities to interact with children from different social, cultural and ethnic backgrounds, thus threatening social cohesion (OECD, 2019[19]). Not only does this widen inequalities in education, but it can also weaken the overall efficiency of the education systems by underutilising the talents of children from disadvantaged backgrounds (European Commission, 2022[9]). However, Programme for International Student Assessment (PISA) data suggest a complex trade-off: while strict residence-based rules can lock in residential inequalities, simply weakening these links through expanded school choice can intensify social sorting. When choice is unregulated, middle- and upper-class families are more likely to navigate the system to their advantage, potentially increasing the isolation of high achievers in “elite” schools and leaving disadvantaged students in under-resourced environments (OECD, 2019[19]). This academic and social segregation can harm the performance of low achievers without significantly benefitting high achievers, affecting the overall effectiveness of the education system.
Instruments to foster a more balanced school composition and foster social mixing can mitigate segregation if well designed and transparently implemented at the local level. In Barcelona, Spain, zoning reforms and adjusted school admission processes introduced under the 2018 Shock Plan Against School Segregation and the 2021 Admissions Decree aim to reduce concentrations of disadvantage in certain neighbourhoods or schools (Box 3.1) (Barcelona City Council, 2025[20]). The policies have introduced measures such as revised catchment areas, priority access for vulnerable students and limits on school choice to reduce segregation. Early evaluations indicate a significant drop in school segregation – 23% in first-year nursery schooling, 16% in primary schools and 26% in the first year of secondary school – however, some challenges remain in implementation, particularly for foreign pupils (Institut Metropoli, 2023[21]; OECD, 2025[22]).
What are the objectives?
Barcelona’s Shock Plan Against School Segregation aims to reduce educational inequalities by promoting a more balanced distribution of students across schools and limiting segregation between public and publicly subsidised private institutions.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: School segregation has been a persistent challenge in Barcelona, with evidence over the past two decades highlighting the role of school choice mechanisms and unequal access to information in driving disparities across schools.
Stage 2 – Prioritise: The Shock Plan Against School Segregation prioritises reducing inequalities in access to education by focusing particularly on socially disadvantaged students, who face the greatest barriers to accessing certain schools.
Stage 3 – Design and mobilise: A central element of the reform was the shift from fragmented and incomplete identification of disadvantaged students to a co-ordinated, data-driven approach. This was supported by the creation of a city-wide Vulnerable Students Registry.
Stage 4 – Implement: The plan combines three main levers: improved identification of disadvantaged students, the introduction of school-specific quotas for these students across all schools and targeted financial support to support effective access.
Stage 5 – Monitor, learn and adapt: An evaluation has been conducted by a partner university (Autonomous University of Barcelona, UAB) to assess its impact: between 2018 and 2019 and 2023 and 2024, desegregation policies led to a 26.3% decrease in the Dissimilarity Index and a 61.4% reduction in the Adjusted Isolation Index for socially disadvantaged students.
What can other communities learn from this example?
Build data-driven targeting systems to improve policy effectiveness: Moving from fragmented identification to a centralised, data-driven approach can significantly improve the detection and targeting of vulnerable populations.
Embed strong evaluation frameworks from the outset: Rather than relying on aggregate performance data, embedding frameworks that monitor granular data from day one helps assess in real time whether the education system is maintaining a balanced social mix and enable adjustments if needed.
Note: See Step 2 of the OECD/EC survey in Annex A.
Supplementary services like meals, homework clubs and after-school activities can reduce non-academic barriers to learning
Supplementary services, like after-school activities, homework clubs and school meals, help address non-academic barriers to learning, which disproportionately affect disadvantaged children and communities (OECD, 2023[15]). Children from low-income households are more likely to experience food insecurity, limited access to quiet study spaces, lower levels of socio-emotional well-being and reduced participation in extracurricular activities (OECD, 2024[23]). Narrowing the gap in well-being and socio-emotional development is as critical as academic support for long-term success (OECD, 2018[24]). Such wraparound services are key for teaching transversal competencies, such as resilience, co-operation and self-regulation, which are strong predictors of adult health and job performance (OECD, 2021[25]; European Commission, 2022[9]).
Breakfast clubs and school meal programmes in cities such as Lisbon, Portugal, provide a healthy lunch for all students: they are free for those in the lowest income group, while others pay half the subsidised cost. Similarly, Ireland’s Hot School Meals Programme has expanded to provide free nutritious meals to primary school children nationwide, helping reduce food insecurity and support educational participation for over 475 000 children (DSP, 2025[26]). A longitudinal study of Sweden’s universal free school lunch programme (1959-1969) tracked students who participated in the programmes into adulthood, finding the group experienced 3% higher lifetime earnings, with the poorest quartile seeing a 6% boost (Lundborg, Rooth and Alex-Petersen, 2021[27]). In Helsinki, Finland, the city provides nutritious meals to all students during the school term, complemented by free summer meals in playgrounds to maintain continuity of support (Box 3.2). By providing access to daily meals, these services do more than provide nutrition: they increase “instructional time” and peer socialisation, contributing to reduced inequalities, supporting learning capacity and generating long-term cumulative benefits for children’s physical and social development.
What are the objectives?
The initiative aims for every pupil in Helsinki receives a nutritious meal during the school day, regardless of family income. This addresses social inequalities and health disparities, supporting inclusive growth by improving learning conditions and well-being for all.
How does it work in practice? Applying the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: Evidence linking food insecurity and poor diet to weaker concentration and educational outcomes informed Helsinki’s policy design.
Stage 2 – Prioritise: Finland has prioritised school meals as a universal entitlement within the education system, rather than a targeted anti-poverty measure. All pupils in basic education are legally entitled to a free, balanced meal every school day.
Stage 3 – Design and mobilise: Delivery is enabled through a clear, multilevel governance framework. While legislation and nutritional standards are set at the national level, Helsinki is responsible for organisation, delivery and financing.
Stage 4 – Implement: Menus are planned in cycles and follow national nutritional recommendations. Helsinki extends provision beyond the school term through free summer meals during holidays.
Stage 5 – Monitor, learn and adapt: Menus are regularly updated to reflect national guidelines and sustainability, which is an increasingly important value of the food services, including increased vegetarian food and reduced red meat consumption.
What can other communities learn from this example?
Identify population groups facing the greatest barriers: Universal provision can reduce stigma and support equity. Free meals for all pupils avoid singling out low-income families, help the “hidden poor” in the city and improve conditions for learning.
Integrate policies with other sectors: Aligning meals with health guidelines supports long-term well-being and health benefits and provides early lessons into healthy eating. Aligning meals with sustainability standards can also help meet local climate targets.
Note: See Step 2 of the OECD/EC survey in Annex A..
Investment in school infrastructure matters, particularly in disadvantaged neighbourhoods
Finally, smart and inclusive investments in quality educational infrastructure can enhance physical learning environments and support more equitable educational outcomes in cities. While robust empirical evidence on the specific impact of physical learning environments on educational outcomes remains limited, there is growing recognition of their importance. For example, well-designed, safe and well-maintained school facilities have been linked to improved student well-being, engagement and academic performance. In Portugal, the Territórios Educativos de Intervenção Prioritária (TEIP) programme exemplifies this approach by prioritising schools in disadvantaged areas and with high dropout rates for both infrastructural improvements and pedagogical support (European Commission, 2022[28]). Emerging findings also suggest positive effects in areas such as health and safety, energy efficiency, accessibility, integration of information and communication technology, flexible spaces that support modern pedagogies and after‑school facilities that serve the broader community (European Commission, 2022[9]). Accessible school infrastructure is also a critical component of inclusive education. Physical and architectural barriers can limit the participation of students with disabilities, while investments in accessible entrances, classrooms, recreational facilities, transport connections and universal design features can help ensure all students are able to fully participate in school life with independence (OECD, 2023[15]).
Inclusive labour markets directly influence household incomes, economic mobility and well-being. While employment regulations are set at the national level, city governments can help connect people with jobs and shape the quality of local job opportunities and play, jointly with regional governments, an important role in adult skills policies (OECD, 2025[29]). Strong local skills programmes are a cornerstone of inclusive labour markets. They help residents acquire, update and apply skills throughout their working life while enabling employers to access the talent needed to grow and innovate. Local skills systems are particularly important because geographic mobility remains relatively low, meaning most people seek employment opportunities close to where they live (OECD, 2025[30]; OECD, 2026[31]). At the same time, labour market conditions, employer demand and skills shortages vary considerably across places, creating a need for tailored, place-based responses reflective of local economic realities (OECD, 2025[32]).
Local policy levers, including active labour-market programmes (including training and wraparound support for jobseekers, further and continuous education), employer incentives and inclusive procurement can help reduce disparities in cities, helping specific groups such as migrants, older adults, women and youth move into quality employment opportunities. Moreover, good-quality employment opportunities in cities allows city residents to participate in their local economies. There is strong evidence underscoring that effective labour-market policies can deliver positive long-term effects on employment, earnings and employability, particularly when targeted towards specific groups (OECD/European Commission, 2025[33]).
Localised school-to-work transitions help reduce the risk of youth disengagement and “NEET” status
At a time of rapid technological change and shifting demand for skills, improving the transition from education to employment is a critical municipal lever for safeguarding young people against long-term economic exclusion. Cities are particularly well positioned to support school-to-work transitions for two reasons. First, many cities have responsibility for, or strong influence over, adjacent policy areas such as housing, social services, health, transport and youth services. This enables them to address the multiple and interconnected barriers that can prevent young people from successfully entering education, training or employment. Second cities are often closely connected to local employers, business associations and training providers, allowing them to align career guidance, training programmes and work-based learning opportunities with actual labour market demand and improve matching between young people and local jobs (OECD, 2022[34]).
Cities can therefore play a crucial role in co‑ordinating employers, training providers and schools to support young people at risk of dropping out of education or not in employment, education or training. Evidence from successful initiatives demonstrates that localised, cross-sectoral approaches are particularly helpful, such as Portugal’s ATIVAR.PT programme, which boosted lower-educated youth employment by 10 percentage points through structured internships (OECD/European Commission, 2025[33]). The benefits of wraparound models and joined-up cross-sectoral approaches in cities can provide labour-market benefits too. In Italy, Milan’s First Steps in Milan Project (2023) integrates social services for migrant children with parental upskilling, including language courses and cultural orientation, as well as job search assistance, bolstering socio-economic inclusion (Mayors Migration Council, 2024[35]). While challenges for these programmes such as funding sustainability persist, cities that embed these interventions within broader local ecosystems, linking employment and training programmes to private sector needs, housing, transport and welfare policies, can reduce youth disengagement and drive inclusive growth.
Reaching those who would benefit most from training requires targeted outreach, as they are often the least likely to engage
Cities can widen access to employment by supporting targeted outreach, local hiring practices and training programmes which address specific barriers to work for vulnerable groups, thereby helping to raise labour‑market participation, strengthen productivity and support more economic growth. However, evidence shows that those who would benefit most from such interventions are often the least likely to access them. Across OECD countries, participation in adult learning remains significantly lower among low-skilled individuals (around 20%) compared to medium- and high-skilled groups (37% and 58% respectively), highlighting persistent inequalities in upskilling opportunities (OECD, 2019[36]). Moreover, local government consistently report that reaching certain groups of people, including the unemployed, migrants and low-paid workers, is a key challenge for adult learning systems (OECD, 2022[34]).
In this context, targeted and localised interventions are critical. In Montreal, Canada, the Equal Access to Employment programme focuses on providing fair and equal opportunities for employment for Indigenous groups, women, people with disabilities and ethnic minorities. These efforts promote diversity in city teams and address structural barriers to employment faced by certain groups (Plante, 2023[37]). In France, the Rennes Métropole Local Plan for Insertion and Employment (Plan local pour l’insertion et l’emploi, PLIE) is a territorially embedded employment inclusion policy that combines national frameworks, EU funding and local partnerships to support individuals facing significant barriers to employment (Box 3.3). Its core approach focuses on personalised pathways, co-ordinated service delivery and strong engagement with employers, particularly through innovative mechanisms such as active job mediation.
What are the objectives?
The core objectives of the Rennes Métropole Local Plan for Inclusion and Employment (PLIE) revolve around individualised and integrated pathways to employment. Central to the model is reinforced, personalised support delivered by a single caseworker, ensuring continuity from initial engagement through to sustained employment.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: The PLIE’s diagnosis highlights socio-economic conditions such as employment dynamics and vulnerable groups, while also drawing on previous PLIE evaluations to identify areas for improvement (e.g. strengthening partnerships, improving training alignment).
Stage 2 – Prioritise: Based on this diagnosis, target groups are clearly defined (e.g. long-term unemployed, social assistance beneficiaries, young people at risk), and quantitative objectives are set (e.g. 900 000 annual pathways, 1 500 new participants over the programme period).
Stage 3 – Design and mobilise: The PLIE is designed as a multilevel, partnership-based governance system, bringing together local government, national actors, EU institutions (through European Social Fund Plus [ESF+] funding) and employment agencies such as France Travail. Rennes Métropole is responsible for the delivery.
Stage 4 – Implement: Implementation relies on intensive, personalised support combined with strong employer engagement. Participants are accompanied through tailored pathways, including training, job placement and in-work support.
Stage 5 – Monitor, learn and adapt: The PLIE benefits from a structured monitoring and evaluation system at the local level, complemented by national-level reporting processes.
What can other communities learn from this example?
Situate the city within its structural context: The PLIE builds on both national policy frameworks and local socio-economic diagnostics to tailor interventions to territorial labour-market conditions.
Identify population groups facing the greatest barriers: Clearly defined target groups (e.g. long-term unemployed, social assistance beneficiaries) enable focused and tailored support.
Note: See Step 2 of the OECD/EC survey in Annex A.
Integrated employment and training can improve labour-market inclusion for vulnerable groups
Efforts to increase employment for a specific group through co-located or well-co-ordinated “one-stop-shop” models have also been found to be effective. For instance, Finland has pioneered local guidance centres, Ohajaamo, assist young people (less than 30 years old) into work, education or training. The service co‑ordinates employment, social and community services in one space. Impact assessments showed that 43% of participants found some type of work, while another 32% began or applied for training (OECD, 2019[38]). In Lithuania, vocational training programmes provided substantial advantages for older female participants and jobseekers with lower skills levels, demonstrating the role of labour-market policies in supporting vulnerable groups (OECD/European Commission, 2025[33]).
The social economy can also play an important role in supporting labour-market inclusion, particularly for those that are hardest to reach. Across a range of OECD countries, social economy organisations – including co-operatives, mutual societies, associations, foundations and social enterprises – often provide tailored employment opportunities, training and support services for vulnerable groups such as long-term unemployed people, migrants, youth and persons with disabilities (OECD, 2023[39]). Their strong local roots and function in the wider local economy makes them well positioned to initiate and empower local initiatives, identify unmet needs, deliver integrated services and reach individuals who might not engage with traditional employment systems.
Meanwhile in Athens, Greece, policies that provided digital training for migrant entrepreneurs improved their business operations and social integration, demonstrating the important role of digital skills in labour-market inclusion (Drydakis, 2022[40]). Such a programme highlights how labour-market policies not only support the employability and boost inclusive growth but can also support wider economic strategies, namely the digital transition. The city of Athens also launched their Job Centre in 2025 as part of the EU‑funded Athens 2030, following a pilot phase in 2017-2020 (Box 3.4). The policy focuses on local labour-market integration for vulnerable social groups including youth, women migrants and people with disabilities. The Job Centre applies a holistic model of employment counselling, combining individualised support, skill development, legal and accounting advice and job-matching services. Key success factors include a human-centred approach, partnerships with non-governmental organisations (NGOs), employers and other social services and the dedication to understanding the real needs of the target group through staff training.
What are the objectives?
Athen’s Job Centre aims to improve access to employment and strengthen employability for individuals experiencing unemployment, underemployment and social vulnerability. The initiative responds to structural challenges in the local labour market, including fragmented employment services, skills mismatches and barriers faced by people at risk of poverty or social exclusion.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: The Job Centre was developed in response to evidence that employment support in Athens was fragmented across multiple actors and difficult to navigate, particularly for vulnerable groups.
Stage 2 – Prioritise: Athens prioritised the creation of a centralised, one-stop-shop model, designed to simplify access to employment services and reduce administrative barriers.
Stage 3 – Design and mobilise: The Job Centre was designed as a municipal co-ordination hub bringing together public services, employers, training providers and civil society organisations.
Stage 4 – Implement: The Job Centre delivers individualised career counselling, employability assessments, skills development activities and job-matching services.
Stage 5 – Monitor, learn and adapt: Monitoring combines quantitative indicators, user feedback and qualitative tools such as surveys and focus groups.
What can other cities learn from this example?
Identify population groups facing the greatest barriers and create tailored pathways to improve outcomes for people facing multiple labour-market barriers.
Design integrated intervention packages: One-stop-shop models help to reduce fragmentations and improve accessibility for jobseekers.
Note: See Step 2 of the OECD/EC survey in Annex A.
Engage employers as partners in local skills systems
Effective engagement with employers is essential to ensure that local skills and employment policies respond to local labour market needs (OECD, 2022[34]). Despite their central role as creators of jobs and users of skills, employers are often not systematically involved in the design, delivery and governance of local skills systems (OECD, 2024[41]). This can contribute to skills mismatches, reduce the effectiveness of training programmes and limit pathways into quality employment. Cities are well positioned to address this challenge through their direct relationships with major employers, business associations and chambers of commerce (OECD, 2022[34]). By creating structured platforms for dialogue and collaboration, city governments can help align training provision with current and future skills needs, expand work-based learning opportunities and improve transitions into employment. In London (the United Kingdom) the Jobs and Skills Business Partnership convened employers, training providers and public authorities to shape local skills priorities and strengthen workforce development. Similarly in Amsterdam (the Netherlands), the ERDF-funded House of Skills initiative (2017-2022) brought together employers, education providers and public authorities to improve skills matching and support labour market transitions (OECD, 2023[42]). Local skills systems can be made more effective when employers are engaged not only as consultees but as active partners in identifying skills needs, co-designing training programmes and providing workplace learning opportunities.
Deploying city levers to enhance job quality and combat in-work poverty
City policymakers can play a key role in improving job quality by leveraging their influence over local employment, procurement and partnerships with employers, particularly to support low-paid or precarious workers (OECD, 2016[43]). Public procurement is one of the most direct levers available to city authorities to shape labour standards in outsourced work, particularly in sectors such as cleaning, catering, social care and security, where low pay is more prevalent. Strategic public procurement can be used to embed social objectives like fair wages and decent working conditions into contracting processes, providing requirements are carefully designed and enforceable (OECD, 2020[44]).
One approach that has gained traction in several cities is the promotion of “Living Wage” campaigns, which encourage employers to voluntarily pay wages that reflect the actual cost of living, above statutory minimums. Campaigns in Barcelona (Spain) and London (the United Kingdom) have led the way, often beginning by applying “living wage” (a minimum wage calculated based on the actual cost of living in a specific place) standards to their own workforce and extending to contractors through procurement clauses. A study of local government contractors in the United Kingdom analysed the effects of applying the living wage to procurement contracts, comparing employment outcomes in a large company working for local government both in areas requiring the living wage and areas without such requirements. The results showed that workers in living wage areas got higher pay and saw smaller pay gaps within their workplaces, with no job losses. This suggests that local government policies can boost the earnings of low‑wage workers without hurting employment (Datta and Machin, 2024[45]).
Platform and gig workers can benefit from local action to improve job quality
Cities can work with platform and gig work companies. While these innovations can offer flexible working opportunities for individuals such as youth and people with a migrant background, they can undermine job quality due to limited job security, income stability or access to certain social protection alongside limited training or career progression opportunities. While regulation is generally national, cities can play a role in improving working conditions through greater oversight and worker support services. In Bologna, Italy, the charter of fundamental rights of digital labour, signed by delivery platforms and trade unions, sets local standards for working conditions and fair treatment of workers (Box 3.5) (Digital Platform Observatory, 2018[46]).
What are the objectives?
The initiative aims to promote fair, sustainable and transparent practices in the urban logistics sector in Bologna so that economic efficiency does not come at the expense of workers’ rights or environmental quality.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: Bologna identified urban logistics as a growing source of social, environmental and economic inequality, particularly in the context of rapidly expanding electronic commerce.
Stage 2 – Prioritise: Bologna prioritised the development of a shared ethical framework for urban logistics, recognising that sustainability transitions must also address social justice and labour conditions.
Stage 3 – Design and mobilise: The charter was co-designed through an inclusive process involving municipalities, logistics companies, trade unions, co-operatives and civil society organisations.
Stage 4 – Implement: Implementation is based on voluntary adherence to the charter. The initiative has supported pilot projects such as low-emission delivery systems, the use of cargo bikes for last-mile logistics and the promotion of ethical supply chains.
Stage 5 – Monitor, learn and adapt: The charter functions as a living document, evolving through continuous dialogue, feedback and the addition of new commitments from signatories.
What can other communities learn from this example?
Voluntary frameworks can mobilise diverse stakeholders and increase buy-in: Co‑designed charters can bring together public authorities, businesses, trade unions and civil society around shared principles.
Address social and environmental goals together: Linking labour rights with sustainability objectives can strengthen both buy-in and impact. Integrating fair working conditions with low‑emission logistics solutions helps tackle inequalities while improving urban liveability.
Note: See Step 2 of the OECD/EC survey in Annex A.
Public employment programmes targeted at specific population groups can support long-term unemployed people through community-based roles and integrated training, as illustrated with Ireland’s Community Employment and Tús programmes (OECD/European Commission, 2025[33]). While such schemes may not always lead to sustained employment, evaluations show that when well-targeted and personalised, they can improve participant outcomes, boosting confidence, skills and job readiness. Similarly, place‑based industrial policies designed to stimulate production and investment in specific areas can help reduce regional labour-market disparities and be cost-effective interventions, but are heavily dependent on implementation and targeting. A study of industrial policies in the United States, like direct factory investments in struggling regions, found that these programmes helped disadvantaged workers most when they focused on creating good jobs, offering skills training and supporting career growth (Garin, 2025[47]). However, many recent interventions were found to have increased overall employment without improving incomes or job prospects for left-behind workers while other interventions brought the risk of crowding out private sector investment, underscoring the importance of careful design and targeting to provide inclusive benefits.
Cities can act to remove barriers and prevent discrimination, enabling older workers to fully contribute their productive value
Targeted policies to support ageing populations in cities that wish to participate in the labour market can promote older worker retention and intergenerational teams. By 2040, the share of people aged 65 and over living in OECD cities is projected to rise to 28%, up from 21% in 2020 (OECD, 2025[29]). Giving older employees more employment opportunities and building multigenerational workforces could raise gross domestic product (GDP) per capita at the national level by up to 19% over the next three decades (OECD, 2020[48]). Older workers can often boost firm productivity through experience sharing and skill complementarities but can face barriers such as outdated training, care responsibilities or discrimination (OECD, 2020[48]). Bilbao, Spain, has a comprehensive city-level strategy to support older adults in the city, which raises awareness for workplace discrimination of older adults and supports older adult’s access to volunteer activities (City of Bilbao, 2020[49]). Alongside this, the city’s local economic development agency provides employment targeted support for long-term unemployed older age groups, including subsidised job placements, digital upskilling and training for 45+ and 55+ year-old residents (Bilbao Ekintza, n.d.[50]).
Improving access to affordable, good-quality and sustainable housing is a key driver of inclusive growth in cities, promoting economic stability, social inclusion and well-being. Enhancing housing supply in areas of high demand enhances economic mobility by enabling more people to access jobs while reducing health risks associated with poor-quality housing (OECD, 2023[51]). Evidence shows that well-designed housing policies can reduce poverty risks and housing cost overburden, boost economic productivity, through shorter commutes for instance, and improve health.
Expanding and the supply of affordable housing supply can deliver economic and social returns
Expanding the stock of affordable or social housing, particularly in areas of opportunities, emerges as one of the highest-impact interventions on inclusive growth outcomes. An assessment of the economic and social benefits of building additional social rented homes in England, the United Kingdom, estimated that every GBP 1 spent by the government constructing social rented housing supported a further GBP 1.43 in indirect benefits being generated, producing a total gross value added (GVA) multiplier of GBP 2.43 (Cebr, 2024[52]). These include the direct economic activity supported by the construction and management of social housing, along with construction supply chain impacts, higher employment and productivity, better health, reduced homelessness and greater welfare spending.
In Vienna, Austria, the cost-rental model, sustainable financing and forward-looking social housing policies demonstrate how large-scale social housing provision (covering over 40% of all households rising to nearly 60% when including subsidised dwellings too) can both reduce poverty and foster economically diverse neighbourhoods (Marquardt and Glaser, 2020[53]). Since the 1920s, the city has maintained a longstanding policy of large-scale public provision of affordable housing, which has resulted in a price-dampening effect on the broader housing market. This helps guarantee access for both working and middle-income households. Importantly, municipal housing is distributed across the city, promoting social mix and contributing to neighbourhood safety and cohesion. However, the success and generosity of the model can create “lock-in” effects that impact the wider economy. The significant gap between regulated social leases and private market prices often discourage residents from moving, even where better employment opportunities arise in other regions. This lack of residential mobility can negatively impact regional labour-market imbalances, as the opportunity cost of giving up a secure, low-cost municipal lease in the city outweighs the potential gains from moving to areas with labour shortages (OECD, 2025[30]).
Ultimately while supply is the primary driver of housing affordability, allocation and flexibility play a key role. Optimising the allocation of social housing can therefore have positive impacts. A study of New York City, the United States, estimated welfare gains of 3.6% per resident from better targeting of affordable housing to the neediest groups, suggesting allocation mechanisms can be as important as supply in improving equity and overall welfare outcomes (Favilukis, Mabille and Nieuwerburgh, 2019[54]).
Inclusionary zoning can widen access to opportunity-rich neighbourhoods, but design details matter
Inclusionary zoning policies typically mandate minimum affordability levels in new private developments, requiring developers to include a specific share of below-market rental or ownership units. While these share similar objectives to broader mixed housing models, namely to promote social mixing and preventing spatial segregation, they are generally implemented with different policy levers and face distinct implementation challenges. If well-designed, inclusionary zoning can promote inclusive growth by expanding access to opportunity-rich neighbourhoods (OECD, 2023[51]). Evidence highlights that children from families in the bottom income quartile who grow up in a mixed-income neighbourhood can achieve future household incomes approximately 10% higher than their peers who did not (Chetty and Hendren, 2018[55]). However, implementation challenges, such as developer resistance, legal or regulatory challenges can diminish the full impact of these policies. This can inadvertently limit construction activity, reducing the supply of new housing developments, or increase market rents dramatically if developer incentives are not carefully calibrated through careful consultation, regular reviews or flexible incentives (Freemark, 2021[56]).
Market-oriented regulatory reforms can help unlock affordable housing supply
Restrictions on supply, resulting from structural planning constraints, can drive up market-wide costs, inflate land premiums and stifle regional economic mobility. In high-demand cities, overly restrictive planning systems can constrain housing supply responsiveness, contributing to rising inequality and limiting access to economic opportunities (Cavalleri, Cournède and Özsöğüt, 2019[57]). While planning frameworks are often shaped at the national or regional level, reforms can support cities to introduce more streamlined, rules-based approval systems, simplify permitting procedures and promote “gentle density” (such as infill development or sympathetic upward extensions). These reforms can allow supply to respond dynamically to price signals, bringing down costs. In Auckland (New Zealand), the Unitary Plan implemented in 2016 upzoned three-quarters of the residential land, liberating density limits near employment centres and transit lines, triggering a construction boom. Empirical evaluations six years post-reform found that rents for family-sized dwellings were between 22% and 35% lower than they would have been without the zoning relaxation, significantly slowing down overall housing cost rises (Greenaway-McGreevy, 2023[58]).
Targeted approaches can support the most vulnerable and deliver strong cost-benefit ratios
To address acute housing needs, cities can implement targeted interventions. One example is Housing First policies, which provide tailored, intensive support for people experiencing homelessness with high and/or complex service needs by providing them with long-term, immediate housing and enabling them to exercise control over their support services. Analysis of programmes across various countries such as Canada, England (the United Kingdom), Finland and Spain show strong positive results for vulnerable groups, but narrower population wide impacts (Ly and Latimer, 2015[59]; Martínez‐Cantos and Martín‐Fernández, 2023[60]; UK Government, 2024[61]). For instance, pilots of English Housing First policies in Liverpool, Manchester and cities in the West Midlands region (including Birmingham) found a benefit cost ratio of 2:1, with benefits arising from improved well-being for the individuals supported and wider society, alongside financial savings for the government, with net benefits expected to increase over time (UK Government, 2024[61]).
In Canada, the Housing First model remains a proven approach guiding many local strategies. However, its Reaching Home programme launched in 2019 no longer requires specific Housing First investment targets and instead allows communities to adopt a range of evidence-based and locally tailored approaches. This shift reflects an effort to strengthen system-level responses and deliver results for different residents, with a focus on reducing overall homelessness, new inflows, returns to homelessness and chronic homelessness (Housing, Infrastructure and Communities Canada, 2025[62]). In Portugal, Lisbon’s flagship Housing First programme provides immediate access to permanent, independent housing in scattered-site apartments across Lisbon, paired with long-term individualised support that connects with people in their homes and neighbourhoods (Box 3.6). What makes Lisbon’s model distinctive is that Housing First is embedded within a wider integrated service ecosystem which combines street outreach, a drop-in centre and health and social referral pathways, enabling seamless access to harm reduction, healthcare, social services and legal support according to each person’s priorities and needs.
What are the objectives?
The core objective of É UMA CASA is to eradicate chronic homelessness by reversing the traditional staircase model: instead of requiring someone to be “housing ready”, people instead receive Housing First services, with flexible support built around their priorities and pace.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: É UMA CASA was designed in response to a clear gap: people in chronic homelessness with complex needs were often excluded from or unable to sustain engagement with conventional services.
Stage 2 – Prioritise: The programme directly priorities those most likely to remain homeless without tailored approaches, chronically homeless people who often use drugs in ways that cause health and social harm, may have comorbidities and may also have lower trust in health and social systems.
Stage 3 – Design and mobilise: Delivery is mobilised through scattered-site housing (apartments rented from the private market) and a high-support case management model, integrated with outreach and drop-in pathways.
Stage 4 – Implement: É UMA CASA provides immediate entry into permanent housing in scattered apartments across Lisbon, with long-term support for both ongoing needs and acute crises.
Stage 5 – Monitor, learn and adapt: Monitoring is embedded through routine follow-up and outcome tracking, including connections to health and social services, documentation status and medication adherence supporting ongoing learning and fidelity to Housing First principles.
What can other communities learn from this example?
Identify population groups facing the greatest barriers and bring complex services closer to those who need them most: Outreach and community-based delivery show how complex care can be delivered with minimal time and resource burdens on those accessing services.
Engage partnerships and stakeholders to strengthen trust and effectiveness: Longstanding paid peer roles help build respectful relationships and ground services in lived experiences.
Note: See Step 2 of the OECD/EC survey in Annex A.
Beyond Housing First models, which can be effective for chronic homelessness, cities are adopting strategies incorporating upstream prevention and low-barrier mental health support (OECD, 2024[63]). These approaches embed low-threshold mental health care directly into street outreach, harm reduction hubs and community drop-in centres, helping cities to engage highly marginalised individuals in a choice-based track which respects personal autonomy. Preventative measures, targeting moments when people are in institutional transitions, such as leaving psychiatric facilities, acute medical hospitals or correctional institutions, and providing immediate, targeted housing and psychological support can help municipalities disrupt the institutional-to-street pipeline before acute mental health crises spital into chronic homelessness. For instance, across cities in the United Kingdom, including London and Manchester, the “Duty to Refer” framework operationalises this prevention strategy by legally binding hospitals and prison systems to notify municipal housing authorities up to 56 days prior to an individual’s discharge. This allows public health and housing teams to co-design a stable resettlement plan that combines immediate accommodation with continuous psychiatric care, to support vulnerable individuals before they resort to rough sleeping (UK Government, 2026[64]).
Integrating spatial planning and infrastructure can drive sustainable neighbourhood regeneration Sustainable neighbourhood regeneration combines housing with green infrastructure and improves accessibility. In Stockholm, Sweden, the Hammarby Sjöstad project integrates housing with transport and services. It is estimated that the initiative will improve accessibility and quality of life through investments in public transport, cycling infrastructure, energy-efficient buildings and integrated waste and water management (O’Sullivan et al., 2023[65]). Similarly, in Austria, Vienna’s Neues Landgut project illustrates how integrated urban planning can operationalise inclusive growth principles. Built on a 9-hectare former railway site near the city’s main station, the development will include around 1 500 dwellings for 4 000 residents, with approximately half designated as subsidised or social housing. The project goes beyond housing provision, incorporating an education campus, public library, large park and a central neighbourhood square designed for all age groups. It is also well connected to public transport and prioritises active travel through cycling and pedestrian infrastructure reducing reliance on cars and supporting climate goals.
In Italy, Rome’s Integrated Urban Plan (Piano Urbano Integrato) in Tor Bella Monaca is a large-scale regeneration initiative targeting one of the city’s most disadvantaged peripheral neighbourhoods (Box 3.8). The project combines in-place housing renovation with social, cultural and economic interventions, allowing residents to remain in their homes while improving living conditions. By integrating physical regeneration with social inclusion and participatory processes, the project aims to rebuild trust in public institutions and create a replicable model for other marginalised neighbourhoods in Rome.
What are the objectives?
Rome’s Integrated Urban Plan (Piano Urbano Integrato, PUI) in Tor Bella Monaca aims to deliver a holistic regeneration model for one of the city’s most disadvantaged peripheral neighbourhoods. The initiative addresses the physical, social and economic dimensions of urban exclusion through an integrated approach.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: In Tor Bella Monaca, more than 80% of units are social housing in some areas, and buildings suffer from poor maintenance and urban decay, while socio-economic conditions in the neighbourhood are significantly below the city average.
Stage 2 – Prioritise: Rome prioritised Tor Bella Monaca, adopting a holistic regeneration approach rather than a purely physical upgrade and improving safety through urban quality and everyday use of space.
Stage 3 – Design and mobilise: The project combines housing renovation with social, cultural and spatial interventions. Ground floors are redesigned to host services and local activities, supporting neighbourhood vitality. Cultural infrastructure such as the Museum of the Suburbs (Museo delle Periferie) helps strengthen local identity.
Stage 4 – Implement: Implementation combines in-place building renovation with the gradual transformation of public and semi-public spaces, including the redesign of an 11 000 square‑metre central courtyard. It aims to enhance accessibility, usability and social interaction.
Stage 5 – Monitor, learn and adapt: Implementation has been continuously adapted in response to delays linked to illegal occupation, poor building conditions and the need for more inclusive representation in public participation processes.
What can other communities learn from this example?
Address physical and social conditions simultaneously: Regeneration efforts are more effective when housing upgrades are combined with investments in public space, services and community infrastructure. Partnerships with local organisations and academic institutions can build trust, respond to local needs and generate a strong positive sense of place.
Combine tangible short-term improvements with long-term engagement: Delivering early, evident changes can build trust and momentum but must be reinforced through sustained participation and co-design. Ongoing resident engagement alongside physical works can generate a virtuous cycle that yields more inclusive planning of future services.
Note: See Step 2 of the OECD/EC survey in Annex A.
In cities experiencing population loss or weak housing demand, vacant or degraded housing can undermine economic vitality and neighbourhood image, creating a negative spiral of further population loss. In Leipzig, Germany, the HausHalten association manages properties that are difficult to rent, reducing vacancy rates in difficult to rent buildings and demonstrating how strategic reuse can rejuvenate neighbourhoods and provide affordable housing. In general, evidence highlights that vacancy management strategies work best when integrated with broader regeneration strategies. In Saint-Denis, France, its multidimensional strategy addresses concentrated poverty, substandard housing and social fragmentation through long-term urban renewal programmes and co-ordinated governance. This includes the demolition and rehabilitation of substandard housing, measures to prevent evictions and stricter regulation of private landlords. Alongside these housing initiatives, the city invests in improving public spaces, strengthening community ties and enhancing service delivery in targeted neighbourhoods.
More broadly, effective neighbourhood regeneration extends beyond the physical renewal of housing and public space to include investments in social infrastructure, community services and accessibility that enable residents to remain connected to opportunities and support networks throughout different stages of life. This is particularly important in ageing societies, where inclusive neighbourhood design and locally accessible services can help reduce isolation, strengthen community cohesion and support well-being. Neighbourhood-based approaches in Bilbao, Spain, combine social services, health support and community engagement to promote inclusion and quality of life for older residents (Box 3.8).
What are the objectives?
Bilbao’s policy framework for the inclusion of older people aims to address the challenges of population ageing, social isolation and inequality by promoting autonomy, well-being and social cohesion. The policy seeks to help enable older residents to live independently in their own homes and communities for as long as possible.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: Evidence from the city’s Social Observatory and a network of “social antennas”, including associations, social services and health professionals, helps identify individuals at risk of loneliness, dependency or social exclusion.
Stage 2 – Prioritise: The city has prioritised active ageing, prevention of loneliness and support for autonomy as core pillars of its social policy, reflecting both individual preferences and broader policy goals to reduce inequalities and strengthen social cohesion.
Stage 3 – Design and mobilise: Structured working groups promote alignment between municipal and provincial competences, particularly in managing transitions between primary (local) and secondary (provincial) care services.
Stage 4 – Implement: The programmes implemented provide tailored support to older people experiencing social fragility through community activities, daytime care for older people at risk of dependency and personalised in-home assistance.
Stage 5 – Monitor, learn and adapt: Monitoring and evaluation are embedded through surveys and programme-specific indicators tracking participation, service use and outcomes. Evidence shows that programmes have expanded users’ social networks, reduced feelings of loneliness and helped maintain cognitive and functional autonomy.
What can other communities learn from this example?
Prioritise active ageing through preventative, community-based approaches: Shifting from reactive care to early intervention can help older people remain independent for longer and reduce future care needs
Combine prevention with personalised, community-based care: Early identification of at‑risk individuals, combined with tailored support plans and local social activities, can reduce loneliness and delay dependency.
Build strong multilevel and cross-sector co-ordination: Aligning municipal services with regional care systems, while partnering with community organisations and the third sector, improves service continuity and reach.
Note: See Step 2 of the OECD/EC survey in Annex A.
Ensuring access to high-quality public infrastructure and services in cities is essential for enabling residents to thrive in the places they live. Enabling all to contribute to their local economies requires investments in underserved areas and responding to the diverse needs of different demographic groups. Evidence highlights that improving accessibility, whether through transport, utilities or community services, delivers far-reaching economic and social benefits, from expanding job opportunities and reducing financial strain to enhancing public health and environmental sustainability. Focusing on affordability, reliability and a bottom-up approach in public infrastructure and services support policies that are place-based and people-based.
Connecting people to opportunity through accessible and integrated mobility systems
Well-integrated, affordable and reliable transport systems can provide particular benefits to vulnerable or marginalised groups. However, transport systems do not always deliver similar levels of accessibility. Accessibility to opportunities by public transport or active modes varies across neighbourhoods and population groups, due to the interaction of transport provision, land use and diverse user needs (ITF, 2024[66]). A study in the most deprived areas of Glasgow, the United Kingdom, found that low-income residents, especially those with shift-based, out-of-town jobs, were often forced into car ownership due to limited transit options, exacerbating financial stress (Curl, Clark and Kearns, 2018[67]). Improving accessibility fosters agglomeration economies by connecting people and firms. For instance, expansions to the Regional Express Rail (RER) network of trains in Paris, France, between 1975 and 1990 increased employment in the connected municipalities by 8.8%, compared to the existing suburban rail network (Mayer and Trevien, 2017[68]). Improving public transport and accessibility in cities has wider inclusive growth benefits, for instance reducing private-car dependence and improving safety, air quality and pollution levels in cities, driving local health and well-being improvements.
In Tallinn, Estonia, the inclusive growth approach includes a focus on equitable public transport, with the city offering free citywide public transportation to all registered residents since 2013 following a public referendum. This is complemented by inclusive mobility planning, bike and pedestrian infrastructure, and the 15-minute city principle to promote proximity to essential services. In the city of Okayama, Japan, the Sustainable Public Transport Network Initiative responds to the progressive decline of the local public transport system, driven by an increasing reliance on private cars (Box 3.9). As ridership has fallen, services have been reduced or eliminated, creating a negative feedback loop that further weakens the system. At the same time, the city government has identified a need to improve accessibility in its territory, with a focus on residents of underserved areas and on elderly residents who may have few transport options. To address this, the city government has taken on a co-ordinating role, promoting public-private partnerships to stabilise operations and improve the convenience and coverage of public transportation, with the broader aim of supporting urban sustainability and quality of life.
What are the objectives?
Following the progressive decline of the local public transport system, Okayama aimed at restructuring and expanding the bus network to improve accessibility, efficiency and environmental sustainability.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: The policy is grounded in a diagnosis of structural decline in public transport systems, driven by widespread car dependency and resulting in reduced ridership, service cuts and route eliminations.
Stage 2 – Prioritise: The city organises network restructuring by giving priority to connecting underserved areas, and strengthening links to key destinations such as city centres, railway stations and hospitals to help the public transportation network be competitive.
Stage 3 – Design and mobilise: The policy is designed around a public-private partnership model, involving local and national governments, private transport operators, academic institutions and citizens. A key design feature is the strong co-ordinating role of the municipality, which aligns technical, financial and operational aspects.
Stage 4 – Implement: Planned measures include adding 17 new routes, expanding total network length and improving connectivity to railway stations and key services such as hospitals.
Stage 5 – Monitor, learn and adapt: The policy incorporates a data-driven monitoring approach, using daily ridership data to inform service adjustments and awareness-raising campaigns.
What can other communities learn from this example?
Identify population groups facing the greatest barriers: The focus on residents in poorly served areas, including elderly populations, enables targeted improvements in accessibility.
Design integrated intervention packages: The policy combines infrastructure changes, financial mechanisms and behavioural interventions (e.g. awareness campaigns).
Engage partnerships and stakeholders: Public-private collaboration and citizen engagement are central to both design and implementation.
Strengthen co-ordination during delivery: Municipal leadership helps overcome fragmentation and align multiple transport operators.
Use evidence to adapt policies and methods: Ongoing service improvements based on data and user feedback demonstrate adaptive capacity.
Note: See Step 2 of the OECD/EC survey in Annex A.
Co-located, cross-cutting service hubs improve take-up and reduce delivery costs
Locally delivered public services, such as childcare, healthcare, elderly care and libraries, play a key role in enabling labour force participation, social inclusion and community cohesion. Countries with greater access to ECEC services for young children, alongside a high take-up of parental leave by mothers and generalised paternity leave tend to have greater gender equality in the labour market (OECD, 2017[69]). Co-located, cross-cutting service hubs like those combining public health with job centres, such as those highlighted in Milan, Italy and Rotterdam, the Netherlands, can also prove effective in increasing service take-up and reducing delivery costs. More broadly, integrating services in accessible one-stop local hubs can help reduce administrative and informational barriers, especially for vulnerable groups who may otherwise struggle to navigate fragmented systems, while reinforcing the role of proximity and co-ordination in improving access to opportunities (OECD, 2023[70]). In Spain, Madrid’s Family Card further streamlines access by consolidating multiple forms of social assistance – food, hygiene and transport – into a single card, reducing complexity. In Athens, Greece, the Athens Coordination Centre for Migrant and Refugee Issues connects 182 stakeholders through a unified referral system, ensuring migrants and refugees can access appropriate services without repeatedly navigating disconnected systems.
In the London Borough of Camden, the United Kingdom, the Family Hubs Pregnancy Grant is a preventative intervention designed to reduce financial stress in pregnancy and connect low‑income parents to support earlier in their pregnancy (Box 3.10). It combines an unconditional GBP 500 cash payment during pregnancy with proactive outreach that introduces families to Camden’s Family Hubs and related offers (e.g. benefits advice and antenatal support), using linked National Health Service maternity and council benefits data to identify eligible residents so families do not need to navigate an application process to be offered help. The programme is motivated by the reality that Camden faces very high levels of child poverty after housing costs (“almost two in five” children, with a council report estimating 39%, i.e. around 15 700 children) (Camden Council, 2025[71]). It also responds to resident insight that many parents discover Family Hubs only after birth and wish they had known about support sooner, during pregnancy.
What are the objectives?
The Family Hub Pregnancy Grant pilot aims to support pregnant people experiencing financial hardship to receive timely, flexible support and that the grant becomes a bridge into wider, longer-term services that strengthen well-being and reduce inequalities from the earliest stage of a child’s life.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: Camden’s starting point is that pregnancy can amplify financial strain and stress, yet support during this life event is often limited, with most welfare benefits beginning after birth.
Stage 2 – Prioritise: The pilot prioritises early, preventative intervention at a point when support can reduce stress and improve readiness for a child’s arrival. It targets pregnant people on low incomes and makes the offer around the 20‑week scan milestone.
Stage 3 – Design and mobilise: The intervention is built as a stacked offer with two elements: i) a GBP 500 unconditional cash grant; and ii) proactive connection into services through a Family Navigator (for some participants) or high-quality written signposting (for others).
Stage 4 – Implement: Camden contacts eligible pregnant residents directly and offers the GBP 500 grant with no conditions on how it is used. Families can claim the grant through low‑barrier mechanisms and are then invited into a pathway of Family Hub support.
Stage 5 – Monitor, learn and adapt: Delivery quality is tracked through internal dashboards (offers made, uptake, navigator contacts, etc.). Service engagement data are combined with surveys and interviews (pre‑ and post‑birth) to capture both outcomes and lived experience.
What can other communities learn from this example?
Formulate and validate a shared diagnosis: Camden started with a shared mission and a clear “why”. Its model is explicitly framed as preventative, acting during pregnancy to reduce stress and lay foundations for child development rather than waiting for crisis points.
Identify and tailor high-impact policy interventions: Camden addressed the broad challenge of child poverty and early-life inequality through a focus on pregnancy as a preventative window and selected a mechanism with strong potential impact.
Note: See Step 2 of the OECD/EC survey in Annex A.
Access to affordable basic utilities reduces deprivation and health risks
Ensuring access to basic utilities, such as water, energy and waste services, at affordable rates is essential to reduce deprivation and health risks. Affordability schemes (e.g. targeted energy subsidies) have been shown to reduce arrears and improve living standards, especially when linked with broader anti-poverty strategies. In Barcelona, Spain, for example, the city’s Energy Advice Points (PAEs) aim to detect and manage energy poverty and provide employment opportunities to workers who themselves have experienced vulnerable situations (European Commission, 2025[72]). Between 2017 and 2022, PAEs prevented households having their utilities cut off in 108 000 cases, supporting households to continue their daily lives and alleviating financial stress (Barcelona City Council, 2022[73]).
Universal access to high-speed Internet is increasingly a prerequisite for full participation in education, employment and civic life. In the European Union on average in 2024, 95.4% of households in cities have access to the Internet, compared to 92.4% in rural areas. This access remains uneven across the European Union: in cities in Croatia, only 91.4% of city households have access to the Internet, compared to 99.8% in Luxembourg City. Evidence underscores the benefits of broadband infrastructure investments for yielding strong long-term economic benefits by improving access to services, facilitating remote work and supporting local entrepreneurship. An evaluation of subsidies for improved superfast broadband coverage in the United Kingdom from 2010 to 2017, found the programme produced benefits equating to between GBP 3.1-5.1 for every GBP 1 of net public sector spending. These benefits arose, among other factors, from a greater number of jobs, improved business efficiency and increased hourly earnings (DCMS, 2025[74]).
Social infrastructure and urban renewal can strengthen inclusive growth and social cohesion
Beyond their functional role, public infrastructure and services also shape the social fabric of cities. The importance of “social infrastructure” – physical spaces that cultivate connection, including libraries, parks, community organisations or commercial establishments – is increasingly emphasised to enable everyday interactions (OECD, 2025[75]). These can be considered key drivers of social capital, the networks, trust and norms that facilitate co-operation. However, across and within cities, access to high-quality, inclusive social infrastructure can vary significantly by neighbourhood, contributing to spatial disparities in trust, participation and opportunity.
Access to libraries, parks, cultural venues and community centres contributes to quality of life, mental health and civic engagement. Social connections, trust and participation are important determinants of well-being and resilience, with accessible public spaces helping to strengthen these outcomes (OECD, 2024[76]). Cities can provide flexible spaces to be used for a range of community functions which underpin the social economy in cities. These amenities also foster inter-group trust and social capital and support vulnerable groups, particularly when designed to be inclusive and participatory. For instance, library services in some cities extend beyond loaning just books and include providing outfits for job interviews, football loans for children, language lessons and visa process assistance, providing local community assistance and supporting inclusive growth (Edemariam, 2024[77]).
Culture-led regeneration in cities such Bilbao, Spain, has contributed to improved liveability and economic renewal of the city. However, success tends to depend on how such strategies are designed and implemented. Evidence suggests outcomes are more positive when cultural initiatives are community-driven, linked with education and public space activation and have long-term funding attached (OECD, 2025[78]). These approaches can help strengthen local identity and support the Right to Stay, while increasing the city’s competitiveness to attract businesses and talent. However, an analysis of culture-led regeneration projects in 190 European cities highlights that benefits of these projects are not always broadly shared. When strategies prioritise economic growth over inclusion and fail to account for place-specific dynamics, it can result in uneven outcomes and, at times, worsen inequalities (Montalto et al., 2023[79]).
Digital transformation of social services can improve efficiency
Digital tools can help modernise the delivery of social services in cities, by reducing fragmentation and streamlining case management. As demand for social services grow and resources in cities remain constrained, digital transformations can offer cities the opportunity to improve both the efficiency and quality of service delivery. Integrated, data-driven systems can help break down silos between departments, reduce administrative burdens on frontline professionals and enable a more holistic understanding of individual needs. To realise these benefits, digital reforms should be user-centred and accompanied by strong cross-departmental collaboration and investment in interoperable infrastructure (OECD, 2023[70]). This can help services remain accessible, reduce the burden on users to navigate complex systems and enable more proactive and co-ordinated support for people in vulnerable situations.
To improve efficiency and responsiveness of social services, Madrid, Spain, is modernising the delivery of social support by implementing an integrated, data-driven system that places individuals at the centre of service provision (Box 3.11). It combines unified case management, interoperable data systems and multichannel access to enhance service co-ordination, efficiency and user experience. Strong collaboration across municipal departments, the involvement of frontline professionals and continuous monitoring support implementation. This is consistent with evidence that effective digital transformation is underpinned by institutional co-ordination, workforce capabilities and user-centred service design (OECD, 2024[80]).
What are the objectives?
The policy aims to modernise and strengthen the delivery of social services in Madrid by developing an integrated, data-driven system for managing social support and interactions with citizens.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: Madrid’s social services system faced increasing fragmentation due to the proliferation of disconnected information technology (IT) tools, leading to duplication, limited data capacity and security risks. Information was stored in silos across different services, making it difficult to build a comprehensive understanding of users’ needs.
Stage 2 – Prioritise: The reform prioritises improving the effectiveness and accessibility of social services by reducing administrative burdens and enabling professionals to focus on direct support to individuals.
Stage 3 – Design and mobilise: The reform was designed through strong cross-departmental collaboration, to promote alignment between policy, operational and technological dimensions.
Stage 4 – Implement: Key actions include the deployment of interoperable systems, the development of multichannel service delivery and the introduction of new tools to improve communication, case management and service co-ordination.
Stage 5 – Monitor, learn and adapt: A performance monitoring system based on key performance indicators (KPIs) is being developed to assess outcomes once the system is fully operational. Early results include a comprehensive review of existing information systems.
What can other communities learn from this example?
Mobilise strong cross-sector expertise and frontline professionals: Madrid involved a broad range of actors in policy design, including over 100 social services professionals working alongside IT experts, to guarantee that digital solutions are grounded in operational realities.
Foster a culture of open communication and co-creation: A transparent and participatory communication strategy was key to building trust and engagement across stakeholders.
Note: See Step 2 of the OECD/EC survey in Annex A.
The green transition offers opportunities to reduce health inequalities in cities and provide employment benefits for disadvantaged groups and regions, serving as a fundamental prerequisite to long-term competitiveness (OECD, 2020[81]). However, green policies in cities must be carefully designed to avoid disproportionately burdening vulnerable populations or contributing to green gentrification, whereby environmental improvements increase property values and housing costs, potentially displacing lower-income residents. For example, raising public transport costs to expand services could leave low-income groups financially worse off, undermining the inclusive element of such policies. While the shift to net zero is economically necessary in the long run, there can be tensions between economic and environmental goals in the transition period. Expanding job opportunities and economic activity, for example, can sometimes lead to higher emissions and increased resource consumption, for instance when it requires additional energy from fossil fuels or raw material extraction, creating potential trade-offs with sustainability objectives in the short term.
Green investments can create local jobs and have supply chain benefits, but require proactive action to explicitly support underserved groups and areas
Green investments can have the potential to bring local employment benefits by creating direct jobs (e.g. building cycle lanes, planting trees). However, cities must actively intervene to help safeguard that these benefits reach underserved populations. Evidence suggests green-task jobs are often concentrated in specific regions and require distinct skillsets that may not align with the current profiles of disadvantaged workers (OECD, 2023[82]; OECD, 2025[83]).
There can be positive supply chain impacts from action to drive the green transition. For example, in Ontario, Canada, the federal 50 Million Tree Program not only enhanced biodiversity and climate resilience but according to a study commissioned by Forests Ontario, a non-profit organisation, also created 14.4 jobs per CAD 1 million spent,1 benefitting underserved areas (Forests Ontario, 2019[84]). Similarly, a national energy efficiency renovation programme in Hungary demonstrated the dual benefits of reducing emissions and fostering economic inclusion. A deep retrofit programme could cut heating energy use by 85%, create up to 49 full-time jobs per EUR 1 million spent and lower energy bills for households, improving financial well-being (WWC, 2020[85]). Employment benefits therefore are not a guaranteed “supply chain impact” but rather the result of targeted local skills policies and vocational education and training programmes to bridge the transition for workers in “brown” sectors (OECD, 2024[86]). Local climate policies can also have beneficial impacts on health outcomes, for instance by promoting active travel, energy efficiency improvements or biodiversity investments. The local economic growth impacts of these programmes vary however, depending on their objectives and characteristics (WWC, 2020[85]).
Building-retrofit programmes can reduce emissions, improve health and lower energy costs
Building-retrofit programmes can deliver significant health benefits, if correctly implemented (i.e. with sufficient ventilation). A study of England and Wales, the United Kingdom, for example, suggested such a programme could add 800 000 additional life years lived in England and Wales over 2021-2050 (Milner et al., 2023[87]). Energy efficiency programmes can score well in cost-benefit analyses reflecting their combined impacts on job creation, significant energy savings (exceeding 20-30% in some applications), reduced energy bills and wider social benefits such as improved health outcomes and reduced exposure to air pollution (WWC, 2020[85]; IEA, 2025[88]). Yet the benefits of retrofit programmes are not always equally distributed. Energy poverty remains a significant challenge in many cities, highlighting the limits of reactive approaches based solely on energy-bill support. Moving towards a more structural response requires addressing underlying barriers, including the lack of upfront capital for low-income owner-occupier households and the risk of renovation costs being passed on through higher rents for tenants.
In Greece, Athens’ Energy Poverty Alleviation Office (EPAO) tackles energy poverty through targeted, local support for households facing energy vulnerability and high energy costs. Through personalised assessments and tailored guidance, the EPAO has already supported over 850 energy‑vulnerable households, 190 of these also benefitting from municipal fee exemptions. By explicitly linking social inclusion with climate and energy objectives, the initiative strengthens the city’s capacity to identify energy vulnerability early, connect residents to appropriate support and reduce the social harm associated with unaffordable energy (Box 3.12).
What are the objectives?
The Energy Poverty Alleviation Office (EPAO) aims to address the growing challenge of energy poverty among vulnerable households in Athens. The policy seeks to reduce energy vulnerability, improve living conditions and mitigate the social impacts of high energy costs.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: Greece has some of the highest energy poverty rates in the European Union, with 44% of households unable to adequately heat their homes.
Stage 2 – Prioritise: Athens prioritised a preventative and advisory approach focusing on early identification of energy-poor households and personalised support. The city placed particular emphasis on households experiencing compounded vulnerabilities.
Stage 3 – Design and mobilise: The policy was designed as a specialised municipal service embedded within the city’s social support ecosystem. Leadership is provided by the municipality, with co-ordination across social services, housing, energy stakeholders and civil society organisations.
Stage 4 – Implement: The EPAO delivers individualised energy assessments, producing tailored energy footprint reports for households. Services include advice on energy-saving behaviours, guidance on energy efficiency measures and support in navigating available subsidy and renovation programmes.
Stage 5 – Monitor, learn and adapt: Monitoring is based on KPIs tracking household vulnerability, service uptake and referral pathways. Early implementation experience has highlighted high levels of energy poverty among assessed households, informing adjustments to outreach strategies and support tools.
What can other communities learn from this example?
Engage partnerships and stakeholders: Even without large investment budgets, cities and local governments can support vulnerable households by connecting them to existing support offered by national government, EU-level institutions or non-governmental actors.
Launch early actions to demonstrate progress and raise awareness: This does not always have to be through direct interventions, as addressing information gaps can be a first step to support vulnerable households.
Note: See Step 2 of the OECD/EC survey in Annex A.
Inequalities in cities are multidimensional, cutting across income, geography, demography and systemic exclusion. In deprived neighbourhoods, children can face overlapping barriers: underfunded schools, fewer job networks and environmental stressors like pollution, which combine to limit social mobility and compound disadvantage (Chetty et al., 2022[89]). Older workers in declining industrial areas may struggle with outdated skills and age discrimination, locking them out of the labour market even when local growth occurs. These reinforcing cycles of disadvantage are fundamentally a multidimensional problem: disadvantage accumulates across interconnected dimensions simultaneously and tackling one in isolation risks being ineffective or even counterproductive. For example, improving education opportunities in lagging regions without expanding local job opportunities can accelerate the outward migration of skilled workers, benefitting individuals while leaving the underlying structural conditions largely unchanged. Addressing these interconnected challenges therefore requires integrated, cross-sectoral approaches that combine people-based interventions (targeting the specific needs and barriers of different population groups) with place-based strategies (that align action with the characteristics of particular neighbourhoods and local economies).
Integrated, cross-sectoral approaches to tackle multidimensional urban inequalities
Implementing cross-sectoral approaches to tackle multidimensional inequalities does not mean that cities must intervene in every policy area simultaneously. Rather it requires an integrated approach that co‑ordinates priorities, incentives and delivery mechanisms beyond traditional sectoral boundaries. Effective interventions can therefore provide policy benefits which equally extend across policy pillars. For example, evidence from the expansion of Mexico City’s Metro system to underserved, low-income areas shows that reduced commuting times not only boosted employment and access to services but increased formal employment by 7% in areas near new stations, raising tax revenues in the process (Zárate, 2022[90]). Similarly, Canada’s National Housing Strategy reflects the growing recognition that housing functions not only as a social policy, but also as a foundational enabling condition for economic participation, well-being and inclusion. Through investments in affordable and community housing, homelessness reduction and housing supports for vulnerable populations, the strategy aims to improve access to stable housing while supporting broader social and economic outcomes. Complementary initiatives such as the Build Communities Strong Fund (BSCF) further reinforce this integrated approach by supporting community and enabling infrastructure that improves access to services, mobility and more complete, connected neighbourhoods.
Evidence from the OECD/EC survey indicates a shift in this direction among the 72 respondent cities. In particular, cities report moving away from isolated, ad hoc initiatives towards more formalised, citywide strategies integrating economic, social and environmental objectives (see Annex A). The number of newly introduced strategies has steadily increased, peaking in 2022. City examples illustrate how such integrated approaches can help leverage synergies across sectors. For instance, in Austria, Vienna’s cost-rental housing model does not just provide affordable shelter for the city’s residents but also promotes economically mixed neighbourhoods, contributing to enhanced school performance, public safety and access to labour markets. In the United Kingdom, the London Growth Plan 2025-2035 similarly illustrates this with a cross-cutting strategy to make the city more prosperous, fairer and greener. It sets four ambitious targets: a 20% income increase for the lowest-earning households by 2035, 2% annual productivity growth, advancement towards net-zero emissions and a rise in service exports. A strong emphasis is placed on collaborative governance, with delivery overseen by a Growth Mission Board and monitored with a public‑facing action tracker, ensuring accountability and alignment across sectors.
People-based approaches to address cumulative disadvantage
A people-based approach requires cities to actively identify and address barriers faced by different population groups, particularly those that might be less visible to public services. This involves investing in data and outreach mechanisms to better understand the conditions of different groups, especially those that might be left behind, simplifying administrative processes to improve access and designing interventions that reflect diverse and intersecting needs. For example, in Gothenburg, Sweden, the One Stop Future Shop offers personalised entrepreneurship support in eight languages, enabling over 900 participants to navigate regulatory and financial systems. In practice, people-based approaches often mean combining policy tools across sectors, such as linking employment, support with housing, health or education services, and building feedback loops to adapt programmes over time. Strengthening trust between institutions and communities is also critical, as low take-up of services can undermine even well-designed interventions. At the local level, cities are often particularly well placed to carry out this outreach, as their proximity to communities and local organisations can help identify needs earlier, build trust more effectively and reach groups that may otherwise remain disconnected from public services.
Survey findings indicate that cities are adopting more people-based approaches: 84% of respondent cities report implementing programmes specifically aimed at specific groups and 71% complement these efforts through partnerships with local organisations to better understand needs and track implementation. Youth (76%), children (71%), people with disabilities (69%) and older people (65%) are the most targeted groups by cities’ inclusive growth strategies (Annex A).
A useful first step is to assess disaggregated indicators across demographic groups within the city, comparing, for example, employment rates, income levels or housing conditions between residents with and without a migrant background, before designing targeted responses (see more details on generating and using data in the next chapter on key enabling factors for inclusive growth in cities). In Lyon, France, for instance, “sliding leases” (bails glissants) provide a bridge to independent living for vulnerable youth. Effective people-based approaches to inclusive growth in cities require proactive identification and outreach, particularly to groups that remain “invisible” to public services. In the Netherlands, the Identifying the Hidden Poor (Vindplaatsen verborgen armen) initiative was launched in 2020 by a consortium of ten Dutch municipalities together with research institutes and social partners. The programme highlights how municipalities can better identify and support low-income households that remain outside traditional welfare channels. Many of the “hidden poor” are in-work households who are entitled to benefits but do not apply, often due to lack of awareness, fear of repayment or previous negative experiences with municipal services. Through targeted communication, simplified application processes, one-stop service points and data linking to enable proactive enrolment, the programme significantly increased uptake of support schemes and strengthened trust between municipalities and underserved populations (Desain et al., 2025[91]).
In practice, cities are combining a range of people-based tools, including targeted programmes, subsidies, community outreach, partnerships with civil society organisations and improved data collection to identify and support vulnerable groups (Table 3.1).
Tailoring support to individual circumstances while building trust with target groups improves both uptake and outcomes. In Łódź, Poland, intercultural assistants and staff with lived experience of poverty have helped design more responsive services, including a homelessness hostel that allows pets – a seemingly small adaptation with significant implications for engagement. Similarly, in Romania, Cluj-Napoca’s housing first driven desegregation of the Pata-Rât community illustrates how a successful people-based approach. Developed in close collaboration with the Roma community, the programme combines relocation support, skills training and anti-discrimination measures to foster integration into the city’s economic and social fabric (OECD, 2025[92]). Its success stems from building trust with the community and its cross-sectoral delivery which links housing, employment, health and education interventions, alongside continuous monitoring and evaluation that allows for policy adaptation as community needs evolve.
Note: Responses were free-text answers to the question: “How does your city support marginalised or vulnerable population groups through your inclusive growth strategy or initiative?”. See Step 1 of the OECD/EC survey in Annex A.
Place-based approaches to tackle spatial disadvantage
Place-based inclusive growth policies can more efficiently allocate resources than broad, one-size-fits-all approaches, so that public investments yield higher social and economic returns and, under the right conditions, can contribute to welfare gains in cities (Ahlfeldt, Maennig and Richter, 2016[93]) (Rodríguez-Pose et al., 2024[94]). By directing resources to areas with the greatest need or highest potential impact, cities can enhance economic competitiveness while reducing disparities between neighbourhoods.
A place-based approach focuses on aligning policy action with the specific characteristics of neighbourhoods and local economies. This requires cities to develop a granular understanding of spatial inequalities and to co-ordinate interventions at the appropriate geographic scale, whether at neighbourhood, municipal or functional urban area level. Research mapping more than 40 area-based initiatives across OECD countries highlights that initiatives which integrate economic, social and physical dimensions of development can provide a more efficient approach to strengthen community capacity and foster collaboration across local authorities, civil society, housing providers and employment services (Melic, Huovinen and Rubin, 2026[95]). Effective implementation typically depends on integrating investments across domains – transport, housing and skills – so they reinforce each other locally, along with strong institutional commitment and local capacity (Atkinson and Zimmermann, 2018[96]; Melic, Huovinen and Rubin, 2026[95]).
A focus must be given in the design phase to potential unintended consequences. Research from the Netherlands finds that publicly announcing which neighbourhoods will be supported through place‑based interventions to improve deprived neighbourhoods can lead to housing market stigma, reflected in an estimated 4% decline in house prices (equivalent to annual household wealth losses of around EUR 200) in targeted areas. This suggests that while place-based policies can improve access to services and opportunities, they may also inadvertently reduce the attractiveness of neighbourhoods in the eyes of residents and investors, inadvertently leading to segregation within cities (Koster and van Ommeren, 2022[97]). Such findings underscore the importance of careful policy framing and, more broadly, they highlight the trade-offs inherent in all policy interventions and the need for continuous monitoring and adjustment.
To enable place-based policies to contribute to inclusive growth, cities must align interventions with the specific economic, social and spatial characteristics of different places, building on existing local competencies, skills, specialisation and comparative advantages. This requires identifying and mobilising local assets such as community knowledge, cultural heritage and social networks, allowing growth to come from community-drive solutions rooted in place, as opposed to solely from outside investment which can exacerbate inequalities (Kwon, 2024[98]). The EU Smart Specialisation Strategies build on these principles, encouraging regions to identify and invest in their unique strengths through innovation-driven, participatory approaches that align economic development with local assets and societal needs (Suedekum, 2025[99]). While traditional tools like enterprise zones can often fail to benefit the most distressed areas, newer programmes, such as tailored job subsidies and performance-based incentives, can be more effective if linked to local skills development and equity goals (Freedman and Neumark, 2024[100]). The risk of gentrification must be considered when taking place-based approaches. While investment in local areas can drive economic revitalisation, it may also lead to rising housing costs and the displacement of lower‑income residents, undermining social equity objectives.
Combining cross-sectoral, people-based and place-based approaches
People- and place-based approaches are most powerful when combined and implemented through cross-sectoral policies. In Italy, Bergamo’s CAPACITyES initiative illustrates this well: a child-centred policy tackling educational poverty and broader social inequalities through an integrated approach to that combines educational and cultural programmes, community engagement and temporary housing support for vulnerable families (Box 3.13). By linking social services, education and urban regeneration, the initiative strengthens social cohesion, expands opportunities for children and supports long-term resilience. Similarly, in Germany, Frankfurt’s Active Neighbourhoods programme combines physical regeneration with micro grants for resident initiatives and onsite community facilitators who link residents to employment, training and health services. This illustrates how place-based approaches can act as platforms for integrating multiple policy domains at the neighbourhood level, improving both service access and community engagement.
What are the objectives?
The Children Against Poverty Awake the CITy Education System (CAPACITyES) policy was developed in response to Bergamo’s recognition that urban poverty, particularly among children, is multidimensional and cannot be addressed through isolated interventions. The policy aimed to promote inclusive growth by expanding access to educational and cultural opportunities for children, strengthening social inclusion, supporting vulnerable families through housing and reintegration measures and creating child-friendly urban spaces.
How does it work in practice? Understanding the good practice through the lens of the Roadmap for Inclusive Growth in Cities
Stage 1 – Diagnose: Educational poverty was identified as a key dimension of broader urban inequality, particularly affecting peripheral neighbourhoods. Local analysis showed that limited access to learning, cultural opportunities and stable housing reinforced cycles of disadvantage.
Stage 2 – Prioritise: The city prioritised a child-centred and preventative approach, recognising childhood as a strategic entry point for tackling long-term inequality. CAPACITyES placed emphasis on education, community participation, housing stability and well-being, with a strong focus on disadvantaged neighbourhoods.
Stage 3 – Design and mobilise: CAPACITyES was designed as a cross-sectoral initiative led by the municipality in partnership with social co-operatives, foundations and local stakeholders. Governance responsibilities were shared across departments, enabling co-ordination between social services, education and urban regeneration.
Stage 4 – Implement: Implementation combined educational programmes, housing support and community engagement. More than 6 500 children participated in activities delivered through HUBforKIDS and related initiatives.
Stage 5 – Monitor, learn and adapt: Monitoring and evaluation were carried out continuously by a partner research foundation using mixed methods, combining quantitative indicators with qualitative feedback from participants.
What can other communities learn from this example?
Child-centred and participatory approaches can enhance policy impact: Engaging children and families as active contributors, rather than merely beneficiaries, helps build trust, strengthens community ownership and leads to more sustainable outcomes.
Public buildings and spaces can be powerful tools for social innovation: By reusing existing assets for new educational and community purposes, cities can promote inclusion without consuming new land or resources.
Tackling urban inequality requires integrated, multidimensional approaches: Educational, housing, cultural and social challenges are deeply interconnected, and policies should ideally address these simultaneously to maximise effectiveness.
Note: See Step 2 of the OECD/EC survey in Annex A.
Common principles underpinning effective people-based and place-based inclusive growth approaches
Shift from crisis response to sustained prevention for long-term returns
A common approach across successful inclusive growth policies is the need to move beyond reactive, short-term interventions towards early and sustained prevention. Proactive approaches not only improve outcomes for affected groups but also generate significant economic returns. For instance, persistent childhood disadvantage is estimated to cost EU countries who are also OECD countries around 3.5% of GDP through lost employment, earnings and poorer health outcomes. Evidence consistently shows that early interventions, such as high-quality ECEC, deliver strong long-term gains by improving cognitive and socio-emotional development. City-level practice reinforces this: in Iceland, Reykjavik’s Icelandic Prevention Model allocated around 7% of the municipal budget to structured leisure activities, contributing to a dramatic decline in alcohol use among 15-16 year-olds, from 45% to 5% over two decades. This underscores how sustained, preventative investment can reshape long-term trajectories.
Focus support during transitional life stages, like entering work, arriving in a new country or leaving care
Interventions are most effective when they address key moments of transition. Periods such as arrival and integration, the shift from adolescence to adulthood, or re-entry into the labour market represent periods where the risk of exclusion intensify but where well-designed support can have outsized impact. In the European Union, young people aged 18-24 face the highest at-risk-of-poverty-or-social-exclusion rates of any age group, at 26.2%, well above the 21.0% for the adult population as a whole (Eurostat, 2025[101]), underlying the importance of smoothing the school-to-work transition. In Germany, Berlin’s Integrated Vocational Training Programme (Integrierte Berufsausbildungsvorbereitung) addresses this by offering a structured one-year pathway combining vocational training with mandatory workplace placements for those who have not secured apprenticeships. For migrants, the “early intervention window” is equally decisive. In Tromsø, Norway, mandatory six-month introduction programmes centred on rapid workplace language acquisition has enabled around 70% of participants to enter employment. In Brno, Czechia, targeted housing solutions, including “starter flats” for young people leaving foster care, address highly specific needs as well as transition risks. Responsiveness to lived experience was a common feature of effective policies. These examples demonstrate the value of timely, targeted interventions that align support with life-course risks.
Blend social programmes with physical and infrastructure investment
Integrating public services with physical investments in spaces such as schools, community hubs or housing development can extend reach, improve accessibility and create synergies across domains. In Barcelona, Spain, the Climate Shelters in School initiative used EUR 4 million in ERDF funding to retrofit primary schools with green and blue infrastructure, simultaneously addressing climate resilience and community needs. Similarly, Bologna’s, Italy, Salus Space project combines environmental sustainability with mixed social housing for students, low-income families and refugees within a single multifunctional site.
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← 1. Calculated based on an estimated 103.8 jobs created from total direct spending of CAD 7.2 million annually.