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Socioeconomic status

Socioeconomic status (SES) is a measurement used by economists and sociologists. The measurement combines a person's or their family's economic or wealth level and social position in relation to others.

Important factors
Income Income refers to wages, salaries, profits, rents, and any flow of earnings received. Income can also come in the form of unemployment or worker's compensation, social security, pensions, interests or dividends, royalties, trusts, alimony, or other governmental, public, or family financial assistance. It can also come from monetary winnings, like lotteries and other games or contests where money is awarded as a prize. Income can be looked at in two terms: relative and absolute. John Maynard Keynes's absolute income hypothesis predicts that as income increases, so will consumption, but not at the same rate. Relative income dictates a person's or family's savings and consumption based on the family's income in relation to others. Income is a commonly used measure of SES because it is relatively easy to figure for most individuals. Income inequality is most commonly measured around the world by the Gini coefficient, where 0 corresponds to perfect equality and 1 means perfect inequality. Low-income families focus on meeting immediate needs and do not accumulate wealth that could be passed on to future generations, thus increasing inequality. Families with higher and expendable income can accumulate wealth and focus on meeting immediate needs while being able to consume and enjoy luxuries and weather crises. Education Education also plays a role in determining income. Median earnings increase with each level of education. Higher levels of education are associated with better economic and psychological outcomes (i.e.: more income, more control, and greater social support and networking). Research shows that lower SES students have lower and slower academic achievement as compared with students of higher SES. This may be attributed to the abundance of resources available to the upper and upper middle class school districts and parents, while the equivalent in areas which are predominantly lower-middle/working class do not have the resources (for staffing quality teachers, updating textbooks, providing free tutoring or counseling for students who need it in order to succeed at school, etc.). Female education Occupation Occupational prestige, as one component of SES, encompasses both income and educational attainment. The occupational status reflects the educational attainment required to obtain the job and income levels that vary with different jobs and within ranks of occupations. Additionally, it shows achievement in skills required for the job. Occupational status measures social position by describing job characteristics, decision-making ability and control, and psychological demands on the job. Occupations are ranked by the Census (among other organizations) and opinion polls from the general population are surveyed. Some of the most prestigious occupations are physicians and surgeons, lawyers, chemical and biomedical engineers, university professors, and communications analysts. These jobs, considered to be grouped in the high SES classification, provide more challenging work and greater control over working conditions but require more ability. The jobs with lower rankings include food preparation workers, counter attendants, bartenders and helpers, dishwashers, janitors, maids and housekeepers, vehicle cleaners, and parking lot attendants. The jobs that are less valued also offer significantly lower wages, and often are more laborious, very hazardous, and provide less autonomy. Occupation is the most difficult factor to measure because so many exist, and there are so many competing scales. Many scales rank occupations based on the level of skill involved, from unskilled to skilled manual labour to professional, or use a combined measure using the education level needed and income involved. In sum, the majority of researchers agree that income, education and occupation together best represent SES, while some others feel that changes in family structure should also be considered. SES affects students' cognitive abilities and academic success. Several researchers have found that SES affects students' abilities. ==Other variables==
Other variables
Wealth Wealth, a set of economic reserves or assets, presents a source of security providing a measure of a household's ability to meet emergencies, absorb economic shocks, or provide the means to live comfortably. Wealth reflects intergenerational transitions as well as accumulation of income and savings. Income, age, marital status, family size, religion, occupation, and education are all predictors of wealth attainment. The wealth gap, like income inequality, is very large in the United States. There exists a racial wealth gap due in part to income disparities and differences in achievement resulting from institutional discrimination. According to Thomas Shapiro, differences in savings (due to different rates of incomes), inheritance factors, and discrimination in the housing market lead to the racial wealth gap. Shapiro claims that savings increase with increasing income, but African Americans cannot participate in this, because they make significantly less than Americans of European descent (whites). Additionally, rates of inheritance dramatically differ between African Americans and Americans of European descent. The amount a person inherits, either during a lifetime or after death, can create different starting points between two different individuals or families. These different starting points also factor into housing, education, and employment discrimination. A third reason Shapiro offers for the racial wealth gap are the various discriminations African Americans must face, like redlining and higher interest rates in the housing market. These types of discrimination feed into the other reasons why African Americans end up having different starting points and therefore fewer assets. ==Effects==
Effects
Health Recently, there has been increasing interest from epidemiologists on the subject of economic inequality and its relation to the health of populations. Socioeconomic status has long been related to health, those higher in the social hierarchy typically enjoy better health than those below. Socioeconomic status is an important source of health inequity, as there is a very robust positive correlation between socioeconomic status and health. This correlation suggests that it is not only the poor who tend to be sick when everyone else is healthy, but that there is a continual gradient, from the top to the bottom of the socio-economic ladder, relating status to health. Parents with a low socioeconomic status cannot afford many of the health care resources which is the reason that their children may have a more advanced illness because of the lack of treatment. This phenomenon is often called the "SES Gradient" or according to the World Health Organisation the "Social Gradient". Lower socioeconomic status has been linked to chronic stress, heart disease, ulcers, type 2 diabetes, rheumatoid arthritis, certain types of cancer, and premature aging. There is debate regarding the cause of the SES Gradient. Researchers see a definite link between economic status and mortality due to the greater economic resources of the wealthy, but they find little correlation due to social status differences. Other researchers such as Richard G. Wilkinson, J. Lynch, and G.A. Kaplan have found that socioeconomic status strongly affects health even when controlling for economic resources and access to health care. Most famous for linking social status with health are the Whitehall studies—a series of studies conducted on civil servants in London. The studies found that although all civil servants in England have the same access to health care, there was a strong correlation between social status and health. The studies found that this relationship remained strong even when controlling for health-affecting habits such as exercise, smoking and drinking. Furthermore, it has been noted that no amount of medical attention will help decrease the likelihood of someone getting type 2 diabetes or rheumatoid arthritis—yet both are more common among populations with lower socioeconomic status. Political participation Political scientists have established a consistent relationship between SES and political participation. For example, in 2004, the American Political Science Task Force on Inequality and American Democracy has found that those with higher socioeconomic status participate at higher rates than those with lower status. Crime ==Psychological==
Psychological
Language development Home environment The environment of low SES children is characterized by less dialogue from parents, minimal amounts of book reading, and few instances of joint attention, the shared focus of the child and adult on the same object or event, when compared to the environment of high SES children. In contrast, infants from high SES families experience more child-directed speech. At 10 months, children of high SES hear on average 400 more words than their low SES peers. Language ability differs sharply as a function of SES, for example, the average vocabulary size of 3-year-old children from professional families was more than twice as large as for those on welfare. Children from lower income households had greater media access in their bedrooms but lower access to portable play equipment compared to higher income children. This eventually leads children from lower socioeconomic backgrounds to be at a disadvantage when comparing them with their counterparts in terms of access to physical activities. Parental interactions In addition to the amount of language input from parents, SES heavily influences the type of parenting style a family chooses to practice. These different parenting styles shape the tone and purpose of verbal interactions between parent and child. For example, parents of high SES tend toward more authoritative or permissive parenting styles. These parents pose more open-ended questions to their children to encourage the latter's speech growth. In contrast, parents of low SES tend toward more authoritarian styles of address. Their conversations with their children contain more imperatives and yes/no questions that inhibits child responses and speech development. An authoritarian style of address prepares children for these types of roles, which require a more accommodating and compliant personality. Therefore, low-SES parents see the family as more hierarchical, with the parents at the top of the power structure, which shapes verbal interaction. This power differential emulates the circumstances of the working class world, where individuals are ranked and discouraged from questioning authority. Conversely, high-SES individuals occupy high-power positions that call for greater expressivity. High-SES parents encourage their children to question the world around them. The effects of SES on vocabulary extend from childhood to adolescence and even into early adulthood according to a large socioeconomically diverse study. A lack of joint attention in children contributes to poor vocabulary growth when compared to their high SES peers. Joint attention and book reading are important factors that affect children's vocabulary growth. With joint attention, a child and adult can focus on the same object, allowing the child to map out words. For example, a child sees an animal running outside and the mom points to it and says, "Look, a dog." The child will focus its attention to where its mother is pointing and map the word dog to the pointed animal. Joint attention thus facilitates word learning for children. Syntax Syntax refers to the arrangement of words and phrases to form sentences. SES affects the production of sentence structures. Although 22- to 44-month-old children's production of simple sentence structures does not vary by SES, low SES does contribute to difficulty with complex sentence structures. Complex sentences include sentences that have more than one verb phrase. An example of a complex sentence is, "I want you to sit there". The emergence of simple sentence structures is seen as a structure that is obligatory in everyday speech. Complex sentence structures are optional and can only be mastered if the environment fosters its development. Phonology Phonological awareness, the ability to recognize that words are made up of different sound units, is also affected by SES. Children of low SES between the second and sixth grades are found to have low phonological awareness. The gap in phonological awareness increases by grade level. This gap is even more problematic if children of low SES are already born with low levels of phonological awareness and their environment does not foster its growth. Children who have high phonological awareness from an early age are not affected by SES. Positive outcomes of low SES Given the large amount of research on the setbacks children of low SES face, there is a push by child developmental researchers to steer research to a more positive direction regarding low SES. The goal is to highlight the strengths and assets low income families possess in raising children. For example, African American preschoolers of low SES exhibit strengths in oral narrative, or storytelling, that may promote later success in reading. These children have better narrative comprehension when compared to peers of higher SES. Since 2012, there has also been some research on the Shift-and-persist model, which attempts to account for the counterintuitive positive health outcomes that can occur in individuals who grow up in low SES families. Literacy development A gap in reading growth exists between low SES and high SES children, which widens as children move on to higher grades. Reading assessments that test reading growth include measures on basic reading skills (i.e., print familiarity, letter recognition, beginning and ending sounds, rhyming sounds, word recognition), vocabulary (receptive vocabulary), and reading comprehension skills (i.e., listening comprehension, words in context). The reading growth gap is apparent between the spring of kindergarten and the spring of first-grade, the time when children rely more on the school for reading growth and less on their parents. Initially, high SES children begin as better readers than their low SES counterparts. As children get older, high SES children progress more rapidly in reading growth rates than low SES children. These early reading outcomes affect later academic success. The further children fall behind, the more difficult it is to catch up and the more likely they will continue to fall behind. By the time students enter high school in the United States, low SES children are considerably behind their high SES peers in reading growth. Home environment Home environment is one of the leading factors of a child's well-being. Children living in a poor home with inadequate living conditions are more likely to be susceptible to illness and injuries. The fact that many students go to school outside of their home to learn does not mean that it is the only determinant of their literacy growth. Parenting at home plays a role in shaping emotional, physical and mental health, all things that are extremely important to educational success in the classroom. This is a crucial factor that must be acknowledged by educators because boundaries such as constant parenting stress and approach to learning, for example, have a major impact on the students' literacy development. A parent's involvement in their child's reading literacy performance progress is often overcome by demographic factors such as poverty, racial and ethnic identity, family and parenting stress, and the parent's educational level. Studies show that when parents become involved in reading-related activities with their children outside of school, reading performance, literacy, love for reading and language skills are more likely to improve. Parent involvement in students' education is a large factor in their literacy achievement, but the way they parent has a large impact on the overall development of the child. These kinds of involvements are often determined by privilege and the level of stress that a parent must endure, especially when of low socioeconomic status. The reading literacy gap has been further exposed by the enhancement of these already existing inequalities. Studies have found a direct link between Family Processes (including parenting stress and discipline practices), Social-Emotional Readiness (including approaches to learning and self control), and Reading Literacy. Limited access to the correct school resources affects a child's literacy level dramatically, even more so during the switch to online learning, given the combination of decreased parent involvement and access to outdoor play. Low to lower-middle class households had the highest rate of employment change during the pandemic, which includes loss of employment, reduced hours and/or reduced pay. Comparing this 2013 report to the occurrences existing in 2020 are not very different given that the demographic students still experience this "digital gap" and disproportionate lack in access to the internet and/or technological equipment necessary. Additionally, the summer setback disproportionately affects African American and Hispanic students because they are more likely than White students to come from low SES families. Also, low SES families typically lack the appropriate resources to continue reading growth when school is not in session. After the long summer break, it is found that the reading literacy gap between middle and lower class students is about 3 months long. When comparing different social statuses of families, the environment of a neighborhood turns out to be a major factor in contributing to the growth of a child. School influence School characteristics, including characteristics of peers and teachers, contribute to reading disparities between low and high SES children. For instance, peers play a role in influencing early reading proficiency. In low SES schools, there are higher concentrations of less skilled, lower SES, and minority peers who have lower gains in reading. The number of children reading below grade and the presence of low-income peers were consistently associated with initial achievement and growth rates. Low SES peers tend to have limited skills and fewer economic resources than high SES children, which makes it difficult for children to grow in their reading ability. The most rapid growth of reading ability happens between the spring of kindergarten and the spring of first grade. Teacher experience (number of years teaching at a particular school and the number of years teaching a particular grade level), teacher preparation to teach (based on the number of courses taken on early education, elementary education, and child development), the highest degree earned, and the number of courses taken on teaching reading all determine whether or not a reading teacher is qualified. Low SES students are more likely to have less qualified teachers, which is associated with their reading growth rates being significantly lower than the growth rates of their high SES counterparts. ==See also==
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