Economic Stratification

Chapters 9 and 10: Sociology, Schaefer, 1995-2012 see also: Michael Kearl

Social Inequality and Economic Stratification

Opportunity in the U.S.

All societies treat people with certain characteristics differently from others; males/females, old/young, etc. This differential treatment leads to social inequality: Unequal sharing of societal resources; wealth, power, prestige, education, health, etc. (factor of scarcity). Small societies: Minor differences among individuals.

Complex societies have inequalities across categories. Hierarchies, built into social structure, self-perpetuating: passed on from one generation to the next. Effects individuals from before birth (pre-natal care). Impacts all aspects of life (Life Chances). In modern, capitalistic societies: Income and wealth as major factors assigning one to a specific place in the hierarchy.

Social Stratification: socially structured inequality of entire categories of people who have different access to social rewards as a result of their status.

Center for the Study of Inequality, Cornell University

Resources for the study of US Inequality

TYPES OF SYSTEMS

Open and Closed: Continuum of Mobility

Relatively closed systems

This shift led to:

Relatively Open system: Class system (or this)

Mobility in the U.S.A.

Blau and Duncan (1967) and their students, Featherman and Houser (1978):

    1. Occupational mobility (inter and intra) common for males: ~65% of sons employed in different and higher than fathers. (see "Class Matters" at the NY Times) 
    2. Much is "short distance," one or two levels out of eight. Odds of reaching the top very low unless you start out there.
    3. Mobility of African Americans is sharply limited by discrimination. More likely to experience downward.
      1. The Money Gap (whites versus blacks)(2012)
      2. The Many Ways to Measure Economic Inequality (Pew Research Center Fact Tank, December 2013)

Overall PROBLEM: Too MANY seeking too FEW statuses

Maintaining Stratification:

Ideology--

Marx on class:

Weber

Theories of Stratification

Class in the USA:
(
What class are you in?)

Bureau of the Census: Access to current economic indicators

National Priorities Web Site

Class

Percentage of Population

Annual Income (rough figures)

Upper

1-5%

greater than $175,000 (mean ~$295,000)

Upper Middle

~10%

$100,000-$175,000

Lower Middle

30-40%

$40,000-$100,000 (median income 2016: $57,617)

Working

30-40%

$20,000-$40,000

Lower

20-25%

less than $20,000

Back

Measuring Class: Objective--researcher. ? of indicators. Prestige ranking versus esteem. Inclusion of women's work.

Class characteristics

(see "Class Matters" at the NY Times, NY Times 2010 Census Explorer

Upper:

Upper Middle:

Lower Middle:

Working Class:

Lower class:

Back

General considerations:


from: Pew Research Center, Social and Demographic Trends, The Phantom Recovery, March, 26, 2009

Class and Life Chances

Back to the lecture

Distribution of Wealth and Income

Samuelson:

"If we made an income pyramid out of child's blocks, with each layer portraying $500 of income, the peak would be taller than Mt. Everest, but most people would be within in few feet of the ground."

The Wealthiest Person in the USA

The Hyper-Rich (Ultra Rich, local copy)

Median Household (one or more sharing a living unit) Income for 2015 Up 5.2% to $56,516 (2014: $53,657 2013: $51,939 (adjusted: $54,462), 2012: $51,759 (down 1.3% from 2010, GINI up from .469 to .475), 2010: 51,144; 2008: $52,029; 2007: $52,672; 2006: $48,200; (2005: $46,326); 2003: $43,318; 1995: $34,076)

Median Family Income: for 2011: $64,200, 2001: $51,407 Bureau of the Census figure (Household--2.63 people, family--3.16 people and 1.58 earners) (Mean Household: 2000: $55,000, Mean family: $62,600).

Income:

Percentile

% Income 2011

% Income 2001

% Income 1929

Top 5%

22.3%

   

Upper 20th

51.1%

50% (49% in 1996; top 5%: 21.2%; 1989: 18.9%)

55%

2nd 20th

23%

23%

20%

3rd 20th

14.3%

15%

14%

4th 20th

8.4%

9%

8.5%

Lowest 20th

3.2%

3% (1989: 3.8%)

4%

1992: Typical household earning $40,000 pays about 11% in taxes. Ross Perot paid 8.5% on his $230 million income.

Wealth:

Percentile

Share of Wealth (2017) Share of Wealth (2007)

Share of Wealth (2001)

Share of Wealth (1992)

Upper 20th

90%

85.1

84.5

80%

2nd 20th

8%

10.9

10.7

15%

3rd 20th

2%

4.0

4.4

5%

4th 20th

0

.9

1

1%

Lowest 20th

-1%

-.7

-.7

-1%

Average net worth:

Top 20%: $3 million

Second 20%: $273,600

Middle 20%: $81,700

Bottom 40%: -$8,900

Another way of "seeing" this, for 2010:

Group Percent of Wealth
Top 1% 35%
Next 4% 28%
Next 5% 14%
Next 10% 12%
Bottom 80% 11%

 

Power:

Status Group/Prestige:

Poverty

Stereotypes?:

The Underclass:

line

Welfare

Absolute and Relative Poverty.

Persistence of Poverty: "The Poor Pay All" H. Gans

Poverty and Unemployment:

Necessity of Stratification

Functionalism

(Davis and Moore):

  1. If universal and persistent, then "functional" (meets system need)
  2. System level focus: varying degrees of prestige accorded to different positions.
  3. Motivates, selection and screening, attract best to most critical jobs.

Conflict:

  1. Not inevitable, but built into capitalism.
  2. Darhendorf: Authority relations (blends Marx and Weber)--the powerful today want society to run smoothly so they can enjoy their privileges (private affluence and public decay).
  3. The status quo is satisfactory to those with wealth, status and power. Dominant ideology again.
  4. Reforms pacify and maintain authority relationships--minimum wage, welfare, etc.
  5. Melvin Tumin's critique of Davis and Moore.
    1. Problems: Type of reward necessary, Fails to draw on talents of lower classes, justification of rewards for some jobs, legitimacy of wide gulfs in distribution, patterns suggest that being drawn to certain occupations is not necessarily economically motivated--socialization into medicine.

Lenski: Technology and productivity. With limited resources differentiation necessary. Today--it becomes dysfunctional.

  1. Postindustrial, or..
  2. Postmodern

Interactionism:

Theories of Race, Gender, and Age Inequality

Stratification Worldwide (Globalization Theories)

Global Poverty (see Gapminder: http://www.gapminder.org)

Modernization Theory

Case Study: Stratification in Brazil

World System Theory (Neo-colonialism, Dependency Theory)

Resources for the study of Global Inequality

Inequalities of Race and Ethnicity

URL: http://www.umsl.edu/~keelr/010/econstra.html
Owner: Robert O. Keel
rok@umsl.edu
References and Credits for this Page of Notes
Last Updated: Wednesday, March 14, 2018 10:22 AM