nirmal

MUMBAI. MAY 3, 2011

SOCIO-ECONOMIC CLASSIFICATION-2011

The New SEC system

THE NEW SEC SYSTEM

What is the

new SEC system?

01

How do we classify

a household in the new SEC system?

02

What are the

advantages/ drawbacks of the new SEC system?

03

How was the new SEC system

created?

04

What are the

other systems that we considered?

05

What is

the performance of the new SEC system?

Conclusion
THE NEW SEC SYSTEM

06
07

01

What is the new

SEC system?

3

THE NEW SEC SYSTEM

THE NEW SEC SYSTEM

The new SEC system is used to classify households in India.
It’s based on two variables:
• Education of chief earner
• Number of “consumer durables” ( from a predefined

list)- owned by the family. The list has 11 items, ranging from ‘electricity connection’ and ‘agricultural land’- to cars and air conditioners
We have 12 grades in the new SEC system, ranging from A1 to E3
4

THE NEW SEC SYSTEM

DISTRIBUTION OF HOUSEHOLDS

India ( urban + rural )
New SEC System

18.4
15.4

14.7
11.4

9.7
7.5
3.2

4.3

7.9

C1

C2

5.3

1.8
0.4
A1

A2

A3

B1

B2

D1

D2

E1

E2

E3

*Figures in percentage

This round of analysis has been conducted using data from IRS 2008 (round 20)*.
We have drawn a sub-sample of 39,441

5

THE NEW SEC SYSTEM

DISTRIBUTION OF HOUSEHOLDS

Urban
New SEC System
13.2

12.9
11.6

12.6

10.2
7.6

9.8

8.6

5.1

4.7
2.6

1.1

A1

A2

A3

B1

B2

C1

C2

D1

D2

E1

E2

E3

Current Urban SEC system
The current urban SEC system has 8 grades, and is based on occupation and education of chief earner

24
20.5
18.2
11.9

6.6

7.9

8

B1

B2

2.8

A1
6

A2

THE NEW SEC SYSTEM

C

D

E1

E2

DISTRIBUTION OF HOUSEHOLDS

Rural
New SEC System
22.2

20.1
15.6
12.8
10.7
5.1
0.04

0.4

1.3

A1

A2

A3

2.3

3.2

B1