Socioeconomic Classification

You may have come across debates and discussions about socioeconomic or social class. How do we sort people into different classes? What exactly do we base socioeconomic class on?

• In this explanation, we will explore how and why socioeconomic classification is based on occupation.
• We will then look at the types of socioeconomic classification used in the UK, both previously and currently.
• We will explore the Registrar General's Social Class scale and its strengths and weaknesses.
• Finally, we'll examine and evaluate the National Statistics Socio-Economic Classification.

• Objectivity: using occupation is more objective since class categories can be created using criteria that don't rely on a person's individual assessment. Calculating class through occupation is especially relevant for comparisons in sociological studies.

• Life chances: a person's occupation is often related to many other aspects of their life. This allows us to draw inferences about their income, wealth, education, health status, etc. Furthermore, empirical correlations can be observed between occupation-based classes and individual-level or group life chances.

• Identity: although personal experiences and social hierarchies of gender, ethnicity, sexuality, and so on all contribute to an individual's identity, occupation remains one of the most important identity markers in society.

Types of socioeconomic classification

Now, we will look at the types of socioeconomic classification used in the UK, both previously and currently.

Until the late 20th century, two forms of socioeconomic classification were used in the UK in both government statistics and academic research: social class based on occupation (RGSC, also known as Registrar General’s Social Class) and socioeconomic groups (SEG).

In 1994, a branch of the Office for National Statistics (ONS) commissioned a review of official social class categories. The review's recommendations led to the establishment of a new socioeconomic classification: the National Statistics Socioeconomic Classification (NS-SEC), which replaced both RGSC and SEG.

Fig. 1 - Socioeconomic classes have been calculated differently at different times.

The Registrar General’s Social Class scale

Let's begin by taking a closer look at the predominant scale of classification prior to the NS-SEC: social class based on occupation, or the Registrar General’s Social Class scale (RGSC).

A comparatively simple measure of social class, this scale divided the population into five fundamental classes that are either middle-class or working-class (with class 3 split into two manual and non-manual categories). A table depicting this, along with examples of occupations in each socioeconomic class, can be seen below:

The RGSC was created with two occupational features in mind:

• Skill: each class category comprises occupations with similar skill levels and abilities, e.g. professional workers are class 1, skilled manual workers are class 3, etc.

• Status: the prestige and status of each occupation were also considered. This was an important dimension because it introduced an ordinal element into a nominal scale.

Additionally, the RGSC scale divided occupations into two clear classes: middle-class, which involved non-manual work; and working-class, which involved manual work.

Advantages of the RGSC

While this type of classification is now outdated, it did have some distinct advantages. These include:

• Simplicity: The hierarchy was relatively intuitive and easy to understand and apply in different circumstances. It also reflected a fairly 'common-sense' approach to social class based on occupational status.

• Ease of comparison: As the scale was widely used, both occupational changes over time and changes in class-based life chances could be easily compared for studies on health and family situations.

Disadvantages of the RGSC

The Registrar General’s Social Class scale had quite a few weaknesses that eventually led to its redundancy:

Categorisation in the RGSC

Classification of individuals through these criteria requires an occupation, which effectively excluded several parts of the population. Examples are the wealthy who live off inheritance or investments rather than income; the unemployed; those never employed due to illness or disability; and those who perform unpaid labour, e.g. stay-at-home wives and mothers.

Subjectivity of the RGSC

Although occupations were split into two different classes and categorised as manual/non-manual for a reason, this caused two problems. Firstly, specific occupations were assigned to a class mostly based on the subjective judgments of civil servants.

Also, Rose et al. (2005) added that "the manual/non-manual divide is simply not a meaningful distinction given the nature of work and occupations in 21st-century market economies".¹

Intra-occupational status within the RSGC

The scale was oversimplified because it did not consider the status differences that exist within occupations. For instance, a probationary teacher was entered into the same class category as a fully qualified teacher.

It also failed to consider that the same occupational group can include people with very different income levels, e.g. managers and teachers.

The National Statistics Socio-Economic Classification

The National Statistics Socioeconomic Classification, also known as the NS-SEC, is the most recent form of social class categorisation. It was designed from a classification called the Goldthorpe Schema, created by sociologist John H. Goldthorpe.

The NS-SEC differs from previous socioeconomic classifications primarily because there are three versions of it, comprising 8, 5, and 3 classes respectively. That is, it is collapsible – although the 8-class scale is nominal, it can be ‘collapsed’ into a 3-class version that ranks occupations in an ordinal manner. This is displayed in the table below:

Another aspect that separates the NS-SEC from older forms of government occupational scales is its foundation. The scale is developed to measure ‘employment relations’ and ranks occupations by considering:

• Conditions of the labour market: this means assessing each occupational group in terms of rates of income, job security, and promotional prospects.

• Conditions of work: this involves studying different degrees of power, authority, and control that employees have within various workplaces.

The original 8-class NS-SEC also incorporates different modern workplace exchanges and contracts. These include the salaries and benefits typically received by employees in class 1; labour contracts and wages obtained by those in classes 5-7; and intermediate contracts combining elements of both of the above that are typical for class 3.

Fig. 2 - The NS-SEC takes into account employment relations and conditions.

Evaluations of the NS-SEC

This new order of classification was built to avoid the problems of previous occupational scales; in many respects, it does this. It is also updated every 10 or so years and therefore accurately reflects the ways in which work and occupational structures have evolved in recent times.

However, it still has some issues, both specific to the NS-SEC and general to occupational scales.

Class structure in the NS-SEC

The NS-SEC distinguishes between employers, employees, the self-employed, and those who never work or are unemployed long term. However, the class of 'employers' seems to exclude the ultra-wealthy who employ others but don't have a traditional 'occupation'.

There is also a further problem regarding the 'never worked' category: it seems to represent an underclass, but groups together types of people who may have very different circumstances. For instance, it can mean those who never intend to work, those who are unable to work, and those who want to work but cannot find jobs.

Inadequate factoring of unpaid employment in the NS-SEC

Since occupation is defined through paid employment, a whole group of people who work but are not paid, such as domestic labourers or home-makers, is excluded from the scale. Differences between occupations are also not adequately factored in.

This leads to an issue that is separate from the problems that came up with the Registrar General's Social Class scale because it pertains to service workers.

Issues with categorisation of service workers in the NS-SEC

Developments in how work is structured and organised, as well as the impact of globalised competition, have led to certain employees being categorised as 'short-term, self-employed, contract workers'.

However, the rates of pay, duties, and working conditions of management consultants, for example, vary significantly from those of service workers in hospitality.