Standard of living is the level of
income
Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. F ...
,
comforts and services available to an individual, community or
society
A society () is a group of individuals involved in persistent social interaction or a large social group sharing the same spatial or social territory, typically subject to the same political authority and dominant cultural expectations. ...
. A contributing factor to an individual's
quality of life
Quality of life (QOL) is defined by the World Health Organization as "an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards ...
, standard of living is generally concerned with objective metrics outside an individual's personal control, such as
economic
An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
, societal, political, and environmental matters. Individuals or groups use the standard of living to evaluate where to live in the world, or when assessing the success of society.
In international law, an "adequate standard of living" was first described in the
Universal Declaration of Human Rights
The Universal Declaration of Human Rights (UDHR) is an international document adopted by the United Nations General Assembly that enshrines the Human rights, rights and freedoms of all human beings. Drafted by a UN Drafting of the Universal D ...
and further described in the
International Covenant on Economic, Social and Cultural Rights
The International Covenant on Economic, Social and Cultural Rights (ICESCR) is a multilateral treaty adopted by the United Nations General Assembly (GA) on 16 December 1966 through GA. Resolution 2200A (XXI), and came into force on 3 January 197 ...
. To evaluate the impact of policy for
sustainable development
Sustainable development is an approach to growth and Human development (economics), human development that aims to meet the needs of the present without compromising the ability of future generations to meet their own needs.United Nations General ...
, different disciplines have defined ''Decent Living Standards'' in order to evaluate or compare relative living experience.
During much of its use in economics, improvements to standard of living were thought to be directly connected to
economic growth
In economics, economic growth is an increase in the quantity and quality of the economic goods and Service (economics), services that a society Production (economics), produces. It can be measured as the increase in the inflation-adjusted Outp ...
, as well as increase amount of energy consumption and other materials. However, the
IPCC Sixth Assessment Report
The Sixth Assessment Report (AR6) of the United Nations (UN) Intergovernmental Panel on Climate Change (IPCC) is the sixth in a series of reports which assess the available scientific information on climate change. Three Working Groups (WGI, II, ...
found that literature demonstrates that improvements in
sustainable development
Sustainable development is an approach to growth and Human development (economics), human development that aims to meet the needs of the present without compromising the ability of future generations to meet their own needs.United Nations General ...
practices as well as changes in technological efficiency and energy production and use, allow for a Decent Living Standard for all people without
fossil fuels
A fossil fuel is a flammable carbon compound- or hydrocarbon-containing material formed naturally in the Earth's crust from the buried remains of prehistoric organisms (animals, plants or microplanktons), a process that occurs within geologica ...
and ~15.3 GJ per capita by the end of the 21st century.
This allows for
climate change mitigation
Climate change mitigation (or decarbonisation) is action to limit the greenhouse gases in the atmosphere that cause climate change. Climate change mitigation actions include energy conservation, conserving energy and Fossil fuel phase-out, repl ...
by
demand reduction
Demand reduction refers to efforts aimed at reducing the public desire for illegal and illicit drugs. The drug policy is in contrast to the reduction of drug supply, but the two policies are often implemented together. Some discussions of deman ...
as well as other
sustainable development
Sustainable development is an approach to growth and Human development (economics), human development that aims to meet the needs of the present without compromising the ability of future generations to meet their own needs.United Nations General ...
practices.
Factors considered by scholars
Standard of living might be evaluated using a number of characteristics including as the quality and availability of
employment
Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a cor ...
,
real income
Real income is the income of individuals or nations after adjusting for inflation. It is calculated by dividing nominal income by the price level. Real variables such as real income and real GDP are variables that are measured in physical ...
,
disposable income
Disposable income is total personal income minus current taxes on income. In national accounting, personal income minus personal current taxes equals disposable personal income or household disposable income. Subtracting personal outlays ( ...
, class disparity,
poverty rate
Poverty is a state or condition in which an individual lacks the financial resources and essentials for a basic standard of living. Poverty can have diverse , quality and housing affordability, hours of work required to purchase
necessities,
gross domestic product
Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performanc ...
,
inflation rate
In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...
, amount of leisure time, access to and quality of healthcare, quality and availability of
education
Education is the transmission of knowledge and skills and the development of character traits. Formal education occurs within a structured institutional framework, such as public schools, following a curriculum. Non-formal education als ...
,
literacy
Literacy is the ability to read and write, while illiteracy refers to an inability to read and write. Some researchers suggest that the study of "literacy" as a concept can be divided into two periods: the period before 1950, when literacy was ...
rates, life expectancy, occurrence of diseases, cost of goods and services, infrastructure, access to, quality and affordability of public transportation, national
economic growth
In economics, economic growth is an increase in the quantity and quality of the economic goods and Service (economics), services that a society Production (economics), produces. It can be measured as the increase in the inflation-adjusted Outp ...
, economic and political stability, freedom, environmental quality, climate and safety. For the purposes of economics, politics and policy, it is usually compared across time or between groups defined by social, economic or geographical parameters.
Right to an adequate standard of living
Decent living standard
The standard of living varies between individuals depending on different aspects of life. The standard of living consists of the individuals having the basics such as food, shelter, social safety and interaction, which all contribute to their wellbeing and what is considered to be a decent living standard.
Commentators use a number of different measures and approaches to establish the decent living standard (DLS).
The decent living standard revolves around the idea and principle that a majority of the population demand the basics that will allow them to have shelter, food and water; however it is not always able to be maintained for a long period of time.
Measurement
Standard of living is generally measured by standards such as
inflation
In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...
-adjusted income per person and poverty rate. Other measures such as access and quality of
health care
Health care, or healthcare, is the improvement or maintenance of health via the preventive healthcare, prevention, diagnosis, therapy, treatment, wikt:amelioration, amelioration or cure of disease, illness, injury, and other disability, physic ...
,
income growth inequality, and educational standards are also used. Examples are access to certain goods (such as the number of refrigerators per 1000 people), or measurement of health such as life expectancy. It is the ease by which people living in a time or place are able to satisfy their needs and/or wants.
There is also the biological standard of living, which pertains to how well the human biological organism fares in its socio-economic environment. It is often measured by the height of a population.
The idea of a 'standard' may be contrasted with the
quality of life
Quality of life (QOL) is defined by the World Health Organization as "an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards ...
, which takes into account not only the material standard of living but also other more intangible aspects that make up human life, such as leisure, safety, cultural resources, social life,
physical health
Health has a variety of definitions, which have been used for different purposes over time. In general, it refers to physical and emotional well-being, especially that associated with normal functioning of the human body, absent of disease, pain ...
, environmental quality issues.
See also
*
Gini coefficient
In economics, the Gini coefficient ( ), also known as the Gini index or Gini ratio, is a measure of statistical dispersion intended to represent the income distribution, income inequality, the wealth distribution, wealth inequality, or the ...
*
GDP per capita
This is a list of countries by nominal GDP per capita. GDP per capita is the total value of a country's finished goods and services (gross domestic product) divided by its total population (per capita).
Gross domestic product (GDP) per capita is ...
*
Housing stress Housing stress describes a situation where the cost of housing (either as rental, or as a mortgage) is high relative to household income. It may also be used to describe inadequate housing for a proportion of the population.
As a rule of thumb, a ...
*
Human Development Index
The Human Development Index (HDI) is a statistical composite index of life expectancy, Education Index, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income i ...
*
Income and fertility
*
Index of Economic Freedom
*
List of countries by Social Progress Index
*
Living wage
*
Measurable economic welfare
*
Median household income
The median income is the income amount that divides a population into two groups, half having an income above that amount, and half having an income below that amount. It may differ from the mean (or average) income. Both of these are ways of und ...
*
Right to an adequate standard of living
The right to an adequate standard of living is listed as part of the Universal Declaration of Human Rights that was accepted by the General Assembly of the United Nations on December 10, 1948.United Nations''Universal Declaration of Human Rights ...
*
Total fertility rate
The total fertility rate (TFR) of a population is the average number of children that are born to a woman over her lifetime, if they were to experience the exact current age-specific fertility rates (ASFRs) through their lifetime, and they were t ...
*
Where-to-be-born Index
*
Working hours
References
External links
''Industrial Revolution and the Standard of Living''by Freddy Madero
''Commission on Living Standards''
{{Authority control
Purchasing power