This article needs additional citations for
verification. (May 2017) |
The Living Standards Measure or LSM is a marketing and research tool ( same as social economic class: SEC but more refine ) used in South Africa to classify standard of living and disposable income. It segments the population into ten deciles based on their relative means, with LSM 1 being the decile with the least means and 10 being the decile with the greatest means. It does this by ranking people based on ownership of the components of a standard basket of goods (which varies over time). For instance, those people who owned a television set would rank higher in the LSM than those who did not. [1]
In effect, the LSM is an income inequality metric, despite specifically excluding income as one of the tested metric. [2] Its components are reflective of the fact that South Africa has a high Gini coefficient. [3]
The current (2015) basket of variables used to calculate LSM is:[ citation needed]
This article needs additional citations for
verification. (May 2017) |
The Living Standards Measure or LSM is a marketing and research tool ( same as social economic class: SEC but more refine ) used in South Africa to classify standard of living and disposable income. It segments the population into ten deciles based on their relative means, with LSM 1 being the decile with the least means and 10 being the decile with the greatest means. It does this by ranking people based on ownership of the components of a standard basket of goods (which varies over time). For instance, those people who owned a television set would rank higher in the LSM than those who did not. [1]
In effect, the LSM is an income inequality metric, despite specifically excluding income as one of the tested metric. [2] Its components are reflective of the fact that South Africa has a high Gini coefficient. [3]
The current (2015) basket of variables used to calculate LSM is:[ citation needed]