Standard of living

How it is used

Often measured roughly by GDP per capita or real income, though broader indicators such as the Human Development Index also exist. A standard of living rises, improves or falls; living standards is a common alternative, especially in British news.

Example sentences

1. Productivity growth is the key to a higher standard of living in the long run.

2. High inflation has eroded the standard of living of pensioners.

Common collocations

• raise the standard of living
• a high standard of living
• living standards
• fall in living standards

Related terms

• per capitaFor each person in a population; a total divided by the number of people, as in GDP per capita or income per capita.
• purchasing powerThe amount of goods and services that a sum of money or an income can buy; it falls when prices rise faster than incomes.
• Human Development IndexA UN measure that ranks countries by combining life expectancy, years of schooling and income per person into a single score between 0 and 1.
• productivityHow much output is produced from a given amount of input, most often measured as output per worker or per hour worked.
• cost of livingThe amount of money people need to pay for basic needs such as housing, food, transport and energy in a particular place and time.

More terms: Development and Inequality

• developing country
• emerging market
• inequality
• poverty line
• Gini coefficient
• human capital
• informal economy
• sustainable development
• infrastructure
• advanced economy
• income distribution
• redistribution