Skip to main content icon/video/no-internet

Socioeconomic status (SES) reflects a position within a cultural structure. SES is generally defined by three factors—income, occupation and education. These factors are often interrelated, as higher education provides access to occupations that have more prestige and higher salaries. In contrast, less education precludes entry into certain career options. In this situation, individuals might have access to less prestigious occupations that have smaller salaries. Within the United States, socioeconomic status is typically divided into three categories: upper class (highest income, occupational status, and education (IOE), middle class (moderate IOE), and lower class (lowest IOE). Theoretically, these class divisions might simply seem to be a matter of semantics. However, there are practical and real-world consequences to these categories. Social class (in part) dictates the communities in which families can afford to live, quality of essential services (e.g., health care, education, transportation), leisure/cultural options, and social networks as an entrée into other life opportunities.

The U.S. census is an attempt to count the country's population. More specifically, it is an effort to gather demographic data (e.g., age, race/ethnicity, income, education, family status) about individuals. From this data, the best estimate of the population is generated. Collectively, the census information provides a picture of the United States (including SES divisions) at a particular point in time. The information is used to guide the allocation of resources (e.g., money, supplies, equipment) to local communities and states. This allocation influences the degree to which infrastructure (e.g., roads, power utilities) and services (e.g., hospitals, schools, occupational training programs) is available to individuals and/or families in each community.

The first census was taken in 1790. The U.S. Constitution dictates that census data must be collected every 10 years. The most recent census was taken in 2010. Over the centuries, the census has provided greater recognition of racial/ethnic diversity within the U.S. population and SES divisions among racial/ethnic groups. Historically, the largest racial/ethnic group represented in the upper class was white/Caucasian families. Other racial/ethnic groups (e.g., American Indian/Alaska Native, black/African American, Hispanic) were more strongly represented in the lower and middle classes. There is no evidence of an individual quality (e.g., personality, genetics) that would account for the social class divisions. Rather, it has been argued that the structure of society makes it more difficult for families of certain racial/ethnic groups to make upward SES movement (lower class to middle class) or rebound from downward movement (upper class to lower class).

A brief profile of some racial/ethnic groups is provided. The racial/ethnic categories were identified by the federal government's Office of Management and Budget and used in census data collection. Although these categories don't represent the full range of ethnic/cultural diversity within the United States, they provide some insights into the differences in economic status.

Income analyses often focus on household income. The household represents the individuals/family members who reside together. Given the considerable variation in factors, such as family membership/size or proportion of employed family members, it might be too difficult to identify each person's income. Thus, household income is a common economic standard. Although income is not the only indicator of SES, it can be considered a divisional factor. That is, a low-income household would typically be categorized as lower class, even if household members had advanced educational degrees.

...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles

Sage Recommends

We found other relevant content for you on other Sage platforms.

Loading