3.2.1
Note

Standard of Living

3.2.1 Living standards

Statement

  • The standard of living (SOL) is the level of well-being enjoyed by an average person or resident of a country. It is differentiated into material and non-material standards of living.
  • The material standard of living (mSOL) is the quantity and quality of goods and services available to residents of a country for consumption.
  • The non-material standard of living (nmSOL) is the intangible quality of life of residents.

Notes

The two halves are measured by different means. Material standard of living is commonly proxied by real GDP per capita — output available for consumption per head — while non-material standard of living covers intangibles such as working hours, pollution levels and stress that no output figure captures. National income statistics speak directly to the material half, so using them to compare standards of living carries well-defined limitations, and the non-material half requires alternative indicators such as the Human Development Index.