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Living Standards Measure
The Living Standards Measure or LSM is a marketing and research tool ( same as social economic class: SEC but more refined ) 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] Current variablesThe current (2015) basket of variables used to calculate LSM is:[citation needed]
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