Socioeconomic status

Socioeconomic status, often called SES, is a measurement used by sociologists and economists. It describes a person's or a family's economic position and social standing. This status is measured in relation to other people in a society. While people often use the term "social class" to mean the same thing, academics see a difference. Social class usually refers to a person's stable cultural background. In contrast, SES refers to a person's current social and economic situation. Because it focuses on current circumstances, SES can change over time.

To understand SES, researchers look at three primary variables. These are income, education, and occupation. When analyzing a family, experts look at the attributes of everyone in the household. For an individual, they only assess that specific person's attributes. Some researchers also look at perceived financial stress. This is the balance between a person's income and their necessary expenses. It can be tested by seeing if a person has enough money at the end of each month.

Income is a major part of the SES measurement. Income includes wages, salaries, and profits from work. It also includes rents, interests, dividends, and royalties. Other forms of income include social security, pensions, and government assistance. Even money from lotteries or contest prizes counts as income. Economists look at income in two ways: absolute and relative. Absolute income refers to the total amount of money earned. Relative income compares a family's earnings to the earnings of others. To measure inequality, experts often use the Gini coefficient. This scale goes from 0, which is perfect equality, to 1, which is perfect inequality.

Education is the second key variable in determining SES. Higher levels of education are often linked to better economic and psychological outcomes. This includes having more income and greater social support. Education also helps people build specific skillsets. These skills can separate people with high SES from those with low SES. Research shows that children from higher SES homes often have stronger language skills. This can affect their ability to learn in school later on. Additionally, school districts in wealthier areas often have more resources. They may have better teachers, updated textbooks, and free tutoring services.

Occupation is the third variable, and it is often the hardest to measure. Occupational prestige combines both income and educational attainment. It reflects the education required for a job and the income that job provides. It also measures the skills needed and the level of control a worker has. Some jobs are ranked very high in prestige. These include physicians, lawyers, and university professors. These roles often provide more challenging work and more control over working conditions. Other jobs, like dishwashers or janitors, are ranked lower. These jobs often pay less and can be more hazardous or laborious.

Wealth is a separate but related concept to SES. Wealth refers to a set of economic reserves or assets. These assets provide security during emergencies or economic shocks. Wealth is often built through the accumulation of income and savings over time. It can also be passed down through generations via inheritance. In the United States, there is a very large wealth gap. This gap is influenced by many factors, including income disparities and different rates of inheritance. Some groups also face discrimination in the housing market, which affects their ability to build assets.

Finally, SES is closely linked to physical and mental health. This connection is known as the social gradient or SES gradient. There is a robust correlation between a person's status and their health. People higher in the social hierarchy typically enjoy better health. Low SES has been linked to chronic stress and conditions like heart disease or diabetes. It is also linked to respiratory viruses and certain types of cancer. The Whitehall studies in London provided famous evidence for this. These studies looked at civil servants who all had the same access to healthcare. Even with equal healthcare, those with higher social status had better health outcomes. This suggests that social position itself affects how people live and stay well.