Income situation of households as a social status indicator

Abstract

The net financial income of households plays a crucial role in assessing their living standard. It determines of which social class they are members and, thus, their social status as well. In order to monitor their income situation, this paper uses survey data of the European Union Statistics on Income and Living Conditions (EU SILC). An abundance of identification data, such as economic activity, industrial classification or sector of economic activity, level of education, age, number of household members, place of residence, household type and others, makes it possible to identify factors that demonstrably influence the household income level. On this basis, it is possible not only to determine the commonly available social class definitions using income intervals, but also to identify specific causes affecting household income and, thus, link a particular household to a given social class. The goal of this article is to establish which factors influence the income level of households. The authors of this paper focused on four factors: social group membership, occupation classified according to the national economy sectors, the highest level of education attained by the household leader and their age. To analyse the influence of selected factors including their interaction and impact on the income situation of households, the authors applied the method of analysing variance between groups (ANOVA) using STATA statistical software. The Scheffe’s method of contrasts was used to determine specific differences between factor levels.