Title: Social Class Determination through Monthly Household Income: A Perspective

from Bangladesh.

Md. Fuad Al Fidaha, Syeda Sumaiya Efaa*, Md. Abdullah Saeed Khana
a
M.Phil Candidate, National Institute of Preventive and Social Medicine, Dhaka,
Bangladesh.

*Corresponding author:
Syeda Sumaiya Efa, M.Phil Candidate, National Institute of Preventive and Social
Medicine, Dhaka, Bangladesh
Mobile: +8801762052606
Orcid ID: https://orcid.org/0000-0002-9513-8103
E-mail: [email protected]

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Abstract
Background
Social class is a significant factor that influences an individual’s health, education,
and lifestyle, among other things. However, in Bangladesh, there is a lack of a
standard income-based scale that can be used to classify individuals into different
social classes for comparability across studies.
Objective
The current study aimed to design an income-based social class classification that
utilizes monthly family income.
Methods
The current study used the monthly household income statistics reported in the latest
(sixteenth) round of Household Income and Expenditure Survey (2016-17) by the
Bangladesh Bureau of Statistics. Ethical considerations were strictly followed.
Results
At first the median household income of 2016 was calculated and adjusted for
inflation to derive the estimated median household income in 2022. Then the lower
and upper limit of the middle class was demarcated by taking the 75% and 125% of
the median income, respectively. The social class based on the monthly household
income was <12,500 BDT for lower class, 12,500 to 21,000 BDT for middle class and
>21,000 BDT for upper class.
Conclusion
This social class classification can be used for grouping study participants into
comparable socioeconomic categories in the context of Bangladesh, and can be
updated easily in the future based on updated survey results.
Strengths and limitations of this study
 This is one of the pioneer studies that aim to classify Bangladeshi households
on the basis of monthy family income.
 Social class classification based on this calculation offeres easy applicability
and interpretation for research.
 This study used a definition provided in a different study that excludes only
the top 5% of the income distribution, as opposed to traditional 10%.
 The upper limit for the last class in not mentioned.
 The proposed classification can be used specifically in Bangaldesh context.
Keywords: Social class, Bangladesh, monthly family income.

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3
Introduction
Background
Social class is a complex concept that reflects the economic and social standing of an
individual or family in society. When determining social class, factors such as
income, education, and occupation are considered. [1] It has been found to have a
substantial effect on an individual’s health and well-being. [2] Individuals and
families belonging to a higher social class typically have greater access to resources
and opportunities that promote health, such as high-quality healthcare, safe housing,
and nutritious food. In addition, they tend to have larger and more supportive social
networks, which can help reduce stress and improve health outcomes. In contrast,
individuals and families belonging to a lower socioeconomic status frequently face a
variety of obstacles that can contribute to poorer health outcomes, including limited
access to healthcare, increased exposure to environmental toxins, and increased stress
due to financial insecurity and social isolation.
Definition of social class
Social class describes the various groups that exist within a social hierarchy, and is
influenced by a multitude of factors that include economic and political factors.
Groups under social class are distinguished by both objective measures (income,
education, and occupation), as well as subjective differences. The intricacies and
complexities of these differences can often lead to confusion and a lack of clarity. [ 1]
Hence, the term “social class” has been a topic of much discussion. Scholars have not
reached a consensus regarding the term and have approached it in various ways. Some
researchers consider class to be mainly an economic concept determined by factors
like income and wealth. Meanwhile, others have a wider perspective, seeing social
class as a complex construct that includes not only economic factors but also cultural,
educational, and social aspects.
Categories of social class
Frequently, contemporary sociology divides social class into three general categories:
the upper class, the middle class, and the lower class. The upper-class consists of
affluent individuals, well-born, or both. They typically wield significant political
power. The middle class is the most controversial social class, and it consists of a
diverse group of individuals who socioeconomically fall between the lower and upper
classes. The middle class, however, is defined differently in each region. For instance,
those who are classified as middle class in Bangladesh may be categorized as lower

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class in developed countries. The working class or lower class typically consists of
hourly workers and an underclass made up of long-term unemployed and/or destitute
individuals who may receive state welfare. [3]
As the middle class falls in between upper and lower class, we simply need to define
and determine who falls in to this category. Those who fail to reach this category can
be considered lower class and those who surpass it can be considered as upper class.
Social class and Bangladesh
The study and determination of social class in Bangladesh are of the uttermost
importance due to its relevance to social, economic, and political issues.
Understanding the distribution of wealth, income, and resources across the country
can provide policymakers and researchers with a clearer picture of the socioeconomic
landscape and enable them to identify areas with socioeconomic disparities. In
addition, researching social class in Bangladesh can help identify groups that may
have limited access to resources and opportunities. Understanding the social class
positions of women, minorities, and rural residents can help policymakers and
researchers develop programs and policies tailored to meet their specific
requirements. For example, policymakers can design health programs to improve the
health of disadvantaged social classes and ultimately strive to create a more just and
equitable society for all citizens.
Determination of social class
Social class can be determined in different ways—either subjectively or objectively.
When we use the subjective method, we ask individuals which social class they
believe they belong to. However, some people may have a different perception of
their social class than what objective criteria would suggest. Due to this problem,
most sociologists prefer to use objective measures. In the objective method, we
categorize individuals based on one or more criteria, such as occupation, education, or
income. The researcher is responsible for determining a person’s social class based on
where they stand in relation to these variables. However, functionalist and conflict
theorists have different opinions about which objective measures to use. For
functionalist sociologists, socioeconomic status (SES) indicators such as education,
income, and occupation are used to determine a person’s social class. Sometimes a
single variable is used, and sometimes two or all three variables are combined (in
ways that do not concern us) to measure social class. [4]
Determination of social class based on monthly family income

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The concept of social class is complex and multidimensional, and it is influenced by
factors besides income. Education, occupation, and cultural capital are a few of the
variables that influence a person’s social class. Therefore, determining a person’s
social class based solely on their monthly family income can be difficult. A person
with a high income but limited education or cultural capital, for instance, could be in a
lower social class than their income would suggest. Despite these difficulties, income
is frequently used as a proxy for social class in large-scale surveys and studies where
other variables are difficult to measure. This is because a person’s income can be a
useful indicator of their economic resources and standard of living. [5]
Income-based definitions of social class can be classified into two types: absolute and
relative. [6] An absolute definition of social class determines fixed income ranges that
are adjusted based on the purchasing power parity (PPP) across different countries.
This allows for a common reference point to be established across countries. On the
other hand, a relative definition of social class considers one’s position in the national
income distribution, usually categorized into quantiles or percentiles. Relative
definitions can be tailored to each country’s income distribution, allowing for more
country-specific analysis.
Absolute definitions can suffer from some arbitrariness as they do not account for
country-specific features. For instance, a fixed income range that is considered middle
class in one country may be categorized as lower class in another country due to
differences in cost of living and other factors. Absolute definitions have been applied
to the evolution of the global middle class, allowing researchers to identify and
analyze the growth of the middle class across countries. Several organizations like
The Asian Development Bank (ADB) utilizes this approach to define social classes.
According to ADB’s definition, those who have a daily consumption expenditure
between $2 to $20 in 2005 PPP $ are considered part of the middle class. [ 7] A study
conducted in 2008 have also defined the middle class using absolute measures. The
researchers used two different thresholds, one for individuals with daily per capita
expenditures of $2-$4 and the other for those with daily per capita expenditures of $6-
$10. [8] Meanwhile, Another study in 2010 excluded individuals who would be
considered wealthy in the poorest developed countries, such as Portugal, and those
who would be considered poor in the wealthiest developed societies, such as
Luxembourg. After adjusting household distribution data with national accounts
means, he came up with daily expenditures of $10-$100 per person as the benchmark

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for a “global middle class.” [7] In 2009, a study used an income range of USD 2-13
per day at 2005 PPP prices as a definition of the poverty line in developing countries.
According to this definition, people above this line are considered “middle-class”
since they have moved out of poverty. [9]
Relative boundaries, on the other hand, are more commonly used for country-specific
investigations, as they provide a more accurate picture of social class within a given
country. Conversely, relative definitions may provide less homogeneous boundaries
because they are tailored to each country’s income distribution. However, relative
definitions can provide a more accurate picture of social class in a specific country by
making the lower and upper boundaries country-specific. [ 6] According to a research
conducted on 2011, the middle class was defined by looking at the distribution of per
capita consumption expenditure, with the middle class being those in the second,
third, and fourth quintile. [10] In another study conducted on the American society,
the middle class was defined as those with incomes between 75% and 125% of the
median income. [11] Although that parameter was used for a developed country, in a
study conducted in 2010, the same definition was used for developing country. [12]
In this article, we would attempt to define social class in perspective of Bangladesh
using this definition of the middle class by analyzing the data from Household Income
& Expenditure Survey (HIES) of Bangladesh. [13] We would consider the Consumer
Price Index (CPI) for adjustment for inflation and attempt to estimate an adjusted
median household income to identify the middle class. Those with a lower monthly
family income will be considered belonging to lower class and those with a higher
monthly family income as upper class.
Calculation
The HIES survey
The Household Income & Expenditure Survey conducted by the Bangladesh Bureau
of Statistics (BBS) was the sixteenth round of household income and expenditure
surveys. It was conducted from April 2016 to March 2017 and involved 46,080
households selected from 2,304 Primary Sampling Units across 20 strata. These strata
consisted of 8 rural areas, 8 urban areas, and 4 statistical metropolitan areas. [13]
Estimating the median household income
As this is a grouped data, formula for median calculation for group data is to be used.
The formula is:

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 n
Median =
L+
2
( )
−cf
f
×h

Here, L = lower limit of the median group

n = no. of observations
cf = the cumulative frequency of the class preceding the median group
f = frequency of median group
h = group size (assuming groups are of equal size)
Here, we created a list of monthly household income groups of equal sizes by using
and modifying the report of HIES (2016) [ 13] and calculated the cumulative
frequency (Table 1).
Table 1 Distribution of households by monthly household income groups
(modified).
Monthly household income Number of households Cumulative
groups (in Tk.) frequency
0-4999 6632803 6632803
5000-9999 11037940 17670743
10000-14999 8503955 26174698
15000-19999 5009170 31183868
20000-24999 2932004 34115872
25000-29999 1711329 35827201
30000-34999 988110 36815311
≥35000 2514115 39329426
Total 39329426
From Table 1 we get,
n = no. of observations = 39329426
n 39329426
= = 19664713
2 2
The 19664713th observation lies within the group 10000-14999.
So, the median class is: 10000-14999.
L = lower limit of the median class = 10000
cf = the cumulative frequency of the class preceding the median class = 17670743
f = frequency of median class = 26174698
h = class size (assuming classes are of equal size) = 4999
n
So, median =
L+
2
( )
−cf
f
×h

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= 10000+( 19664713−17670743
8503955 ) ×4999
1993970
=10000+(
8503955 )
× 4999

= 10000+ ( 0.23 × 4999 )

=10000+1149.77
= 11149.77
So, the median for monthly household income is 11,149.77 Tk. as per HIES (2016).
Adjustment for inflation
The median estimated above is reflective of the median household income for the year
2016. However, inflation has to be taken into account for calculating the median for
monthly household income. Inflation is the general increase in prices of products and
services over time, which causes the purchasing power of money to decline. [ 14] This
implies that the same quantity of money can now purchase fewer goods. To measure
the impact of inflation on consumers, surveys are undertaken to identify a basket of
commonly purchased items and track the cost of purchasing this basket over time.
This is known as the Consumer Price Index (CPI). [15]
The CPI is a measurement tool that tracks the increase or decrease in the cost of goods
and services commonly bought by wage-earners. It is expressed as a percentage of the
cost of the same goods and services in a base period or year. The CPI is used to
monitor the rate of inflation and assess the impact on the cost of living for the average
person. [16] For example, if the CPI was 100 in the base year and increased to 110 in
the current year, inflation would be 10% over that period.
To calculate how the value of money has changed from a recent period to an earlier
period, the following formula is used [17]:
Current amount =

CPI ¿ recent period ¿ earlier period ¿ × Amount for earlier period

CPI ¿
In this case, CPI for 2016 by 2006 base = 219.86 [18]
CPI for 2022 by 2006 base = 331.35 [19]
331.35
So, the adjusted median for household income = ×11149.77
219.86
= (1.51 × 11149.77)
= 16836.15

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So, after adjusting for inflation, the median household income for Bangladesh in 2022
is 16,836.15 Tk.
Estimation of the middle class:
According to a research, the middle class was defined as those with incomes between
75% and 125% of the median income. [1 2] So, the lower limit for the middle class
would be = 75% of 16,836.15 = 12,627.11 Tk, which can be rounded up to 12,500 Tk.
And the upper limit for the middle class would be = 125% of 16,836.15 = 21,045.19
Tk., which can be rounded up to 21,000 Tk.
The distribution of social class based on monthly household income is shown in Table
2.
Table 2: The distribution of social class based on monthly household income
Social class Monthly household income
Lower class <12,500
Middle class 12,500-21,000
Upper class >21,000

Conclusion
Social class is a complex concept that reflects an individual or family’s economic and
social standing in society. As the CPI value for Bangladesh changes each year, the
determination of social class based on income needs to be reviewed constantly. Doing
so will ensure that the income classification accurately reflects changing economic
conditions and provide policymakers and researchers with reliable data to make
informed decisions. The present research aimed to classify social class based on
available data, which would be useful for researchers, policymakers, and other
stakeholders to better understand resource distribution, health outcomes, and other
important indicators across different social classes. However, there are some
limitations regarding the definition of the middle class. This study used a definition
provided in a different study that excludes only the top 5% of the income distribution,
as opposed to 10%. Hence, the findings may include households in the middle class
that would otherwise be considered upper class. Also, the upper limit of the last
income class is not mentioned (Income group >35,000 Tk). However, as the median
remains same, we considered the class size for the final class to be the same as others
for statistical purposes. Moreover, it is crucial to note that the range for household
income defining the middle class needs to be updated regularly due to its relation to
the constantly changing CPI rates. Failure to update regularly can compromise the

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accuracy and reliability of the range over time.

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Declaration of interest
The authors have no relevant conflicts of interest to declare.
Funding Statement
This research did not receive any grant from funding agencies in the public,
commercial or not-for-profit sectors.
Data Sharing Statement:
The data used in this study are derived from the Household Income and Expenditure
Survey conducted by the Bangladesh Bureau of Statistics which is not publicly
available but can be obtained from the Bangladesh Bureau of Statistics (website:
www.bbs.gov.bd).
Author Contributions:
Conceptualization: Md Fuad Al Fidah
Data Curation: Md Fuad Al Fidah, Syeda Sumaiya Efa
Formal Analysis: Md Fuad Al Fidah, Md. Abdullah Saeed Khan
Methodology: Md Fuad Al Fidah, Md. Abdullah Saeed Khan
Supervision: Abdullah Saeed Khan
Writing – Original Draft Preparation: Md Fuad Al Fidah, Md. Abdullah Saeed Khan
Writing – Review & Editing: Syeda Sumaiya Efa

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