Research question: Does social class have an effect on the financial situation of the household in India?

1. Step: We have data from many countries in the database. We only want to analyze the respondents from India. Data – Select Cases – If condition is satisfied – V2=356
2. We need to check our variables to see if there is anything that we should code as system missing. Analyze – Descriptive Statistics – Frequencies
3. We create our dummy variables for every single category of the independent variable Transform – Recode into Different Variables
4. Check if the recoding is correct.
5. Select which category do you want to use as the reference category
6. Run the linear regression with the following variables: dependent variable and all dummy variables except the reference category

So, in this case, the reference category is the upper class. And therefore this constant here refers to the upper class.

If the p value is less than 0,05 then the relationship is statistically significant.

Constant: this refers to the omitted category. So, on average respondents who believe that they are part of the upper class score 5.458 on a scale of one to ten, where 10 represents completely satisfied and 1 completely dissatisfied in terms of satisfaction with financial situation of the household.

People who think they belong to the upper middle class score of 0.639 points higher than those who think they belong to the upper class. Thus, people who think they belong to the upper middle class on average are more satisfied with the financial situation of their household than those of the upper class. (p<0,001)

Those who see themselves as part of the lower middle class (p=0,079) and of the working class (p=0,447) on average are not significantly more satisfied with their financial situation of the household than those who belong to the upper class.

Those who view themself as a part of the lower class on average score 0,504 less than those of the upper class. Thus, people from the lower class feel significantly less satisfied with their financial situation of the household than those of the upper class (p=0,002).