Socioeconomic status (SES) is a classification based on income, education, and occupation, with low, medium, and high levels. Lower SES is associated with health risks, but assumptions about SES can be incorrect. Communities use SES to allocate resources, but it can lead to stereotypes and incorrect assumptions. SES can reveal areas in need of social relief, but it is not always accurate.
Socioeconomic status, sometimes abbreviated to SES, is a classification that indicates the close relationship between a person’s social status and their financial situation. Assumptions about this status are not necessarily well founded and may conflict with other beliefs, but communities still tend to organize and analyze themselves on the basis of it. Using this classification has both advantages and disadvantages.
Evaluation points
People trying to determine socioeconomic status look at the three interrelated factors of income, education, and occupation. Income tends to increase as educational attainment increases, in part because higher education equips individuals with the skills needed to enter higher-paying occupations. Earnings decrease as educational attainment falls. The result is that, in general, those with less education have less income and therefore a lower position.
Levels and related risks
Experts loosely divide SES into low, medium and high levels. There is a strong correlation between a lower position and many risk factors such as diabetes and arthritis. Mental problems are also on the rise. In many cases it is not clear whether these problems are the result or the cause of the inferior position. It is possible for people to go from one level to another many times in their lifetime.
The cluster effect
Most of those in various socioeconomic status splits tend to cluster together. This may be at least in part because people of similar income, occupation, and education levels can relate to each other’s day-to-day successes and failures. The cluster effect could also occur because people tend to settle where prices are in line with their income, particularly when it comes to rent. Some people compare socioeconomic status to issues like race because of these apparent divisions between people.
Idealistic associations and conflicts
People tend to view being in a higher socioeconomic status as a good thing, perhaps due to the known decrease in health risk factors. Psychologically speaking, the idea is that leveling up means an easier life. Individuals also assume that higher level ones have better skills or intelligence. The tendency then is for people to want to level up rather than level down.
None of these associations or hypotheses are necessarily true. Even people at the highest level can suffer from genetic diseases, for example, and some people inherit their funds or get lucky with a single marketable idea. Many people who have a lot of money are not happy. Some even eschew their financial security for things they consider more important, such as simply living for better spiritual fulfillment.
Assumptions about SES may conflict with other ideals of a given society. A community might work to provide help to low-level members, for example, thus closing class gaps. The underlying principles of capitalism, however, say that the best entrepreneurs and businesses naturally rise to the top and therefore class is inevitable.
Advantages and disadvantages
Considering socioeconomic status has both advantages and disadvantages for communities. Critics of the classification say that people associate significant stereotypes for each of the three SES groups. These stereotypes could lead to problematic and incorrect profiles or assumptions in projects and efforts. An example is to assume that, when a school in a poorer and socially deprived area fails, it is the fault of the school staff. Even within the different SES groups, some individuals do not fit into generally accepted trends.
Proponents of the SES allocation say it could reveal which areas or individuals are most in need of social relief and other programs. If crime is lower in an area with a higher SES, for example, the police department may focus resources elsewhere. This results in greater efficiency and a reduction in fraud cases, which saves you money. Even community leaders spend only where the need is verifiable.
Protect your devices with Threat Protection by NordVPN
