Living Standards Measure


The Living Standards Measure or LSM is a marketing and research tool 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. For instance, those people who owned a television set would rank higher in the LSM than those who did not.
In effect, the LSM is an income inequality metric, despite specifically excluding income as one of the tested metric. Its components are reflective of the fact that South Africa has a high Gini coefficient.

Current Variables

The current basket of variables used to calculate LSM is: