Biological standard of living
Encyclopedia
The Biological Standard of Living indicates how well the human organism
itself thrives in its socio-economic and epidemiological environment. It captures the biologically relevant component of welfare, well-being or the quality of life
. It emphasizes that the human experience ought not to be thought of in one dimension: well-being encompasses more than the command over goods and services
. Health
in general, including the frequency and duration of sickness, and longevity
, has a contribution to welfare - independent of income. The biological standard of living is proxied by such indicators as longevity, morbidity and frequently by the physical stature
of a population. The latter is relatively easily measured, and correlates positively with health outcomes until about a mean of 185 cm for men and 170 cm for women.
and arguably an important concept in other social science disciplines as well, should be considered multidimensional, rather than merely equating it with money income
, the conventional view of the standard of living
. The impetus for the more nuanced formulation of well-being was not only the innumerable conceptual weaknesses of the conventional standard of living, such as the difficulties in adding up ‘utility
’ or welfare across households, or of populations over time, but was prompted also by lack of reliable data on income for long historical periods, as well as the absence of data sufficiently disaggregated spatially, socially, by gender, or by age. How would one determine the welfare of inhabitants of Soweto
, for instance, where a substantial portion of the inhabitants live from the informal economy without reporting it to a statistical institution? In a historical context the same can be said of self-sufficient peasants, housewives and of slaves.
Furthermore, problems surface even in advanced economies where nominal income data are available at a spatially disaggregated level, but its conversion into real income
is thorny in the absence of accurate price index
at the local level. In addition, income ought not be equated with utility or welfare insofar as it does not take into account the disutility or pain of acquiring that income and also disregards interdependent utility functions, i.e., that the subjective evaluation of one’s welfare occurs not in absolute terms as is assumed, but relative to that of other members of the peer group
. This tends to be less the case for biological well-being, as we do not evaluate our own toothache in terms of that of others. The emblematic concept in economics, namely individual utility maximization subject to an income constraint, is also problematic from the point of view of measuring welfare, insofar as only a minority earns income in any society, while the remainder are essentially dependent in some sense. In the United States, for example, 54 per cent of the population earned income in 2003, but only 36 per cent were employed full time
throughout the year. Hence, the discrepancy between income and welfare becomes salient, particularly for minors
and those (mostly females) who work in the household
. Moreover, lifetime health is determined for the most part in childhood, hence by parents, and not by the individual children themselves, and the distribution of resources within the family is quite ambiguous. These allocation decisions early in life cannot be reversed in most cases, particularly since markets do not exist for most aspects of health. Trade in human organs is prohibited, and hence prices (or future prices) do not exist for components of health, even if some forms of insurance do exist. Moreover, the acquisition of knowledge of the determinants of health outcomes is costly, and consequently consumers
’ information set is incomplete and fraught with uncertainty. In short, children have no income of their own, and even if they did would not be able to determine their lifetime health.
also has the disadvantage of not being adjusted for income distribution
, or for the generation of negative externalities such as pollution, congestion, crime, wars, natural disasters, noise, or for the potential additional risks to survival of the species brought about by global warming, for instance. In dictatorial societies economic data are notoriously unreliable, while accurate information on other aspects of welfare might be available. Comparison of income across different economic systems is also challenging because of the difficulties associated with implementing the measurement of economic concepts under widely diverging structures of entitlements and capabilities. Thus, while undoubtedly useful in many ways, GDP per capita or personal income or wages are regarded by many scholars as a perfunctory measure of welfare.
in 1989.
Organism
In biology, an organism is any contiguous living system . In at least some form, all organisms are capable of response to stimuli, reproduction, growth and development, and maintenance of homoeostasis as a stable whole.An organism may either be unicellular or, as in the case of humans, comprise...
itself thrives in its socio-economic and epidemiological environment. It captures the biologically relevant component of welfare, well-being or the quality of life
Quality of life
The term quality of life is used to evaluate the general well-being of individuals and societies. The term is used in a wide range of contexts, including the fields of international development, healthcare, and politics. Quality of life should not be confused with the concept of standard of...
. It emphasizes that the human experience ought not to be thought of in one dimension: well-being encompasses more than the command over goods and services
Goods and services
In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility. It is often used when referring to a Goods and Services Tax....
. Health
Health
Health is the level of functional or metabolic efficiency of a living being. In humans, it is the general condition of a person's mind, body and spirit, usually meaning to be free from illness, injury or pain...
in general, including the frequency and duration of sickness, and longevity
Longevity
The word "longevity" is sometimes used as a synonym for "life expectancy" in demography or known as "long life", especially when it concerns someone or something lasting longer than expected ....
, has a contribution to welfare - independent of income. The biological standard of living is proxied by such indicators as longevity, morbidity and frequently by the physical stature
Human height
Human height is the distance from the bottom of the feet to the top of the head in a human body standing erect.When populations share genetic background and environmental factors, average height is frequently characteristic within the group...
of a population. The latter is relatively easily measured, and correlates positively with health outcomes until about a mean of 185 cm for men and 170 cm for women.
Individual income
In many ways, such indexes provide a more nuanced view of a society's welfare for comparative purposes than income by itself. The analysis of welfare, a fundamental concept in economicsEconomics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
and arguably an important concept in other social science disciplines as well, should be considered multidimensional, rather than merely equating it with money income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...
, the conventional view of the standard of living
Standard of living
Standard of living is generally measured by standards such as real income per person and poverty rate. Other measures such as access and quality of health care, income growth inequality and educational standards are also used. Examples are access to certain goods , or measures of health such as...
. The impetus for the more nuanced formulation of well-being was not only the innumerable conceptual weaknesses of the conventional standard of living, such as the difficulties in adding up ‘utility
Utility
In economics, utility is a measure of customer satisfaction, referring to the total satisfaction received by a consumer from consuming a good or service....
’ or welfare across households, or of populations over time, but was prompted also by lack of reliable data on income for long historical periods, as well as the absence of data sufficiently disaggregated spatially, socially, by gender, or by age. How would one determine the welfare of inhabitants of Soweto
Soweto
Soweto is a lower-class-populated urban area of the city of Johannesburg in Gauteng, South Africa, bordering the city's mining belt in the south. Its name is an English syllabic abbreviation for South Western Townships...
, for instance, where a substantial portion of the inhabitants live from the informal economy without reporting it to a statistical institution? In a historical context the same can be said of self-sufficient peasants, housewives and of slaves.
Furthermore, problems surface even in advanced economies where nominal income data are available at a spatially disaggregated level, but its conversion into real income
Real income
Real income is the income of individuals or nations after adjusting for inflation. It is calculated by subtracting inflation from the nominal income...
is thorny in the absence of accurate price index
Price index
A price index is a normalized average of prices for a given class of goods or services in a given region, during a given interval of time...
at the local level. In addition, income ought not be equated with utility or welfare insofar as it does not take into account the disutility or pain of acquiring that income and also disregards interdependent utility functions, i.e., that the subjective evaluation of one’s welfare occurs not in absolute terms as is assumed, but relative to that of other members of the peer group
Peer group
A peer group is a social group consisting of humans. Peer groups are an informal primary group of people who share a similar or equal status and who are usually of roughly the same age, tended to travel around and interact within the social aggregate Members of a particular peer group often have...
. This tends to be less the case for biological well-being, as we do not evaluate our own toothache in terms of that of others. The emblematic concept in economics, namely individual utility maximization subject to an income constraint, is also problematic from the point of view of measuring welfare, insofar as only a minority earns income in any society, while the remainder are essentially dependent in some sense. In the United States, for example, 54 per cent of the population earned income in 2003, but only 36 per cent were employed full time
Full time
Full-time employment is employment in which the employee works the full number of hours defined as such by his/her employer. Full-time employment often comes with benefits that are not typically offered to part-time, temporary, or flexible workers, such as annual leave, sickleave, and health...
throughout the year. Hence, the discrepancy between income and welfare becomes salient, particularly for minors
Minor (law)
In law, a minor is a person under a certain age — the age of majority — which legally demarcates childhood from adulthood; the age depends upon jurisdiction and application, but is typically 18...
and those (mostly females) who work in the household
Household
The household is "the basic residential unit in which economic production, consumption, inheritance, child rearing, and shelter are organized and carried out"; [the household] "may or may not be synonymous with family"....
. Moreover, lifetime health is determined for the most part in childhood, hence by parents, and not by the individual children themselves, and the distribution of resources within the family is quite ambiguous. These allocation decisions early in life cannot be reversed in most cases, particularly since markets do not exist for most aspects of health. Trade in human organs is prohibited, and hence prices (or future prices) do not exist for components of health, even if some forms of insurance do exist. Moreover, the acquisition of knowledge of the determinants of health outcomes is costly, and consequently consumers
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
’ information set is incomplete and fraught with uncertainty. In short, children have no income of their own, and even if they did would not be able to determine their lifetime health.
National income
National IncomeMeasures of national income and output
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product , gross national product , and net national income . All are specially concerned with counting the total amount of goods and...
also has the disadvantage of not being adjusted for income distribution
Income distribution
In economics, income distribution is how a nation’s total economy is distributed amongst its population.Income distribution has always been a central concern of economic theory and economic policy...
, or for the generation of negative externalities such as pollution, congestion, crime, wars, natural disasters, noise, or for the potential additional risks to survival of the species brought about by global warming, for instance. In dictatorial societies economic data are notoriously unreliable, while accurate information on other aspects of welfare might be available. Comparison of income across different economic systems is also challenging because of the difficulties associated with implementing the measurement of economic concepts under widely diverging structures of entitlements and capabilities. Thus, while undoubtedly useful in many ways, GDP per capita or personal income or wages are regarded by many scholars as a perfunctory measure of welfare.
Origin
Thus, the concept of the biological standard of living was introduced into the literature by John KomlosJohn Komlos
John Komlos is an American economic historian at the University of Munich where he is professor of economics and chair of economic history. He currently serves as a Visiting Professor of Economics at Duke University...
in 1989.