Standard of living is the level of income, comforts and services available, generally applied to a society or location, rather than to an individual. Standard of living is relevant because it is considered to contribute 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, societal, political and environmental matters – such things that an individual might consider when evaluating where to live in the world, or when assessing the success of economic policy.
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 De ...
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 in force from 3 January 197 ...
. To evaluate the impact of policy for
sustainable development
Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The des ...
, 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 was thought to be directly connected to
economic growth
Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Statisticians conventionally measure such growth as the percent rate of ...
, 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 scientific, technical, and socio-economic information concerning climate change. Three ...
found that literature demonstrates that improvements in
sustainable development
Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The des ...
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 and ~15.3 GJ per capita by the end of the 21st century. This allows for
climate change mitigation
Climate change mitigation is action to limit climate change by reducing Greenhouse gas emissions, emissions of greenhouse gases or Carbon sink, removing those gases from the atmosphere. The recent rise in global average temperature is mostly caus ...
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 demand ...
as well as other
sustainable development
Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The des ...
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 parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...
, class disparity,
poverty rate
Poverty is the state of having few material possessions or little
, quality and housing affordability, hours of work required to purchase necessities,
gross domestic product
Gross domestic product (GDP) is a money, monetary Measurement in economics, measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjec ...
,
inflation rate
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
, amount of leisure time, access to and quality of healthcare, quality and availability of
education
Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty. Va ...
,
literacy
Literacy in its broadest sense describes "particular ways of thinking about and doing reading and writing" with the purpose of understanding or expressing thoughts or ideas in written form in some specific context of use. In other words, huma ...
rates, life expectancy, occurrence of diseases, cost of goods and services, infrastructure, access to, quality and affordability of public transportation, national
economic growth
Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Statisticians conventionally measure such growth as the percent rate of ...
, 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.
Experts use a number of different measures and approaches to establish the decent living standard or DLS. The decent living standard revolves around the idea and principle that a majority of the population are in demand for 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 general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
-adjusted income per person and poverty rate. Other measures such as access and quality of
health care
Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health profe ...
, 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, according to the World Health Organization, is "a state of complete physical, mental and social well-being and not merely the absence of disease and infirmity".World Health Organization. (2006)''Constitution of the World Health Organiza ...
Human Development Index
The Human Development Index (HDI) is a statistic composite index of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators, whi ...
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Income and fertility
Income and fertility is the association between monetary gain on one hand, and the tendency to produce offspring on the other. There is generally an inverse correlation between income and the total fertility rate within and between nations. The hi ...
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Index of Economic Freedom
The ''Index of Economic Freedom'' is an annual index and ranking created in 1995 by The Heritage Foundation and ''The Wall Street Journal'' to measure the degree of economic freedom in the world's nations. The creators of the index claim to tak ...
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List of countries by Social Progress Index
The Social Progress Index (SPI) measures the extent to which countries provide for the social and environmental needs of their citizens. Fifty-four indicators in the areas of basic human needs, foundations of well-being, and opportunity to progre ...
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Measurable economic welfare
The Index of Sustainable Economic Welfare (ISEW) is an economic indicator intended to replace the gross domestic product (GDP), which is the main macroeconomic indicator of System of National Accounts (SNA).
Rather than simply adding together all ...
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Median household income
The median income is the income amount that divides a population into two equal 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 ...
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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 ...
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Right to an adequate standard of living
The right to an adequate standard of living is a fundamental human right. It is 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 Decla ...
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Total fertility rate
The total fertility rate (TFR) of a population is the average number of children that would be born to a woman over her lifetime if:
# she were to experience the exact current age-specific fertility rates (ASFRs) through her lifetime
# she were t ...
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Where-to-be-born Index
The Economist Intelligence Unit’s where-to-be-born index (previously called the quality-of-life index, abbreviated QLI) attempts to measure which country will provide the best opportunities for a healthy, safe and prosperous life in the years ah ...
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Working hours
Working(laboring) time is the period of time that a person spends at paid labor. Unpaid labor such as personal housework or caring for children or pets is not considered part of the working week.
Many countries regulate the work week by law, s ...