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(Download PDF) Social Inequality Forms Causes and Consequences 10Th Edition Full Chapter PDF
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Contents vii
Population 192
Historical Inequality Based on Sexuality 193
Inequality Based on Sexuality Today 197
Public Opinion 201
LGB People as Status Groups 204
The Law and Sexual Orientation 205
Globalization and Sexuality 209
Summary 210 • Critical Thinking 211 •
Web Connections 211 • Film Suggestions 211
Like past editions, this tenth edition of Social Inequality: Forms, Causes, and Consequences is
a user-friendly introduction to the study of social inequality. This book conveys the pervasive-
ness and extensiveness of social inequality in the United States with an intersectional per-
spective, to show how inequality occurs, how it affects all of us, and what is being done
about it.
This edition benefits from a variety of changes that have significantly strengthened the
text. We pay increased attention to disability, intersectionality, immigration, religion, and place.
We also spotlight crime and the criminal justice system as well as health and the environment.
The tenth edition includes a new chapter on policy alternatives and venues for social change.
In sum:
1. We have added a new chapter called “Policy Alternatives” (Chapter 15) at the end of the
text. This chapter is designed to provide students with an awareness of potential altern-
atives to our current systems, and to imagine ways that we might bring about change.
2. Intersectionality was introduced in the last edition, but we have augmented the discussion
and infused it throughout the text.
3. We have reworked the theory chapters and moved them earlier in the book, providing a
better framing for students’ analyses in later chapters. We also added an elaboration of
intersectionality in Chapter 7, “Contemporary Explanations of Inequality.” Chapter 6,
“Classical Explanations of Inequality” now features a section on W.E.B. Du Bois in place
of Herbert Spencer.
4. While the last edition contained some information about immigration and religion, recent
political events have made both of these topics crucially important to an understanding of
inequality in the United States. We have created a new chapter called “Immigration, Place,
and Religion” (Chapter 11) that looks at how exclusion and discrimination by citizenship,
religion, and region contribute to inequality.
5. Chapters 12 and 13 provide students with an in-depth look at how health, the environment,
and crime/criminal justice both are produced by and cause inequality. These chapters are
written from an intersectional perspective.
The tenth edition is divided into five major parts. Part 1 examines the scope of inequality, with
a focus on issues such as income, wealth, status, and power. Part 2 outlines general explana-
tions of inequality. The classical arguments included are those of Marx, Weber, Durkheim, and
Du Bois, while the contemporary theories discuss how inequalities become durable and persist-
ent. Specifically, we look at functionalist and labor market theories, and then outline how
material and symbolic resources are hoarded. Finally, we address the importance of micro-level
processes, such as identities and interactions. The chapters in Part 3 asks who benefits and who
loses by inequality: Chapters 8–11 discuss gender, sexuality, race, and include a chapter com-
bining immigration, religion, and place. Part 4 includes two chapters of intersectional case
studies on inequality: the first focuses on health and the environment, and the second on crime
and the criminal justice system. Finally, Part 5 addresses processes of change and stability in
the structure of social inequality through discussions of social movements and potential policy
alternatives. The book concludes with a glossary of many of the basic terms used in the text.
ix
ACKNOWLEDGMENTS
Although any shortcomings in the book are our own responsibility, any improvements in this
edition are due in large part to others. These include our friend and colleague Thomas Tierney
at the College of Wooster, plus our three outstanding research assistants, Olivia Proe, Taylor
Thomas, and Andrew White. We would like to give special thanks to Kimberly Lauffer for her
extremely helpful guidance on Chapter 4. Thanks also to Samantha Barbaro at Taylor and
Francis for guiding us kindly and wisely through the publication process.
We would like readers to know that this book was originally written by Charles Hurst,
and he was the sole author for the first eight editions. Two new authors were added in the last
edition, but they can only be credited with building off the incredibly strong foundation Chuck
created. We value not only Chuck’s sociological wisdom, but also his friendship and sense of
social justice.
We are all indebted to our families for their support during this project. Chuck’s wife,
Mary Ellen Hurst, has been there for all eight editions of the book. From the Fitz Gibbon
family, we thank Stewart, Andrew, and Thomas, and from the Nurse/Thompson family, we are
grateful to John, Alexander, Jacob, and Gabriel.
x
CHAPTER 1
An Introduction
to the Study of
Social Inequality
Fernando was brought into the U.S. illegally by his mother when he was 5 years old. He is now
29 and works as a lab technician in the San Francisco Bay Area. A recipient of DACA (Delayed
Action for Childhood Arrivals, a program that allows people like Fernando to stay in the
country and work legally), he is currently consumed with anxiety because of attempts by the
federal government to end the DACA program. If he loses his DACA status, he would have to
return to Mexico, a country he barely remembers. He told a reporter:
I have no clue what they would do … Would they come knocking on my door, putting me in
detainment facilities, put me on a plane and have someone else take care of my stuff?
Would they round everyone up? I would be afraid of losing everything, losing my friends,
having to start over again in a place I barely know. I can still speak Spanish, but as far as
living a life there, it wouldn’t be mine.
(Sanchez, 2018)
Heather is a small business owner in the Midwest. She was interviewed about why she voted for
President Trump. She said:
Trump understands and supports the American dream; no matter what you have now, if
you work hard you can better yourself and positively shape your wealth and future. Clinton
made it known that she would continue Obama’s agenda of redistribution. What dream is
there in working to see your future gains chopped up by taxation and welfare? Under
Clinton I would have just held out my hand and stopped dreaming. Under Trump the Amer-
ican Dream is revived!
(Fishwick, 2016)
Sarah is the founder of a sports media company. She is concerned about barriers women and
people of color face in starting businesses. Citing data from a large-scale study of venture
capital, she comments,
1
2 Chapter 1 • Introduction: Social Inequality
“The average black female founder with a (Fox, 2018). For many of us, including Fernando,
company raises $36,000.” In comparison, Heather, and Sarah profiled above, this characteri-
the average amount raised by white men zation sounds disturbingly familiar. The share of
who later had their businesses fail was $1.3 the income that that 1 percent controls is now as
million. She said that, as a Black female high as it was in the gilded age (see Figure 1.1),
entrepreneur, “You’re constantly walking and inequality is present and affects us at all stages
this tightrope. Just acknowledging that and of our lives. Think of your own experiences. Even
then figuring out how to optimize that is when young, we hear of people as being from a
important.” “bad neighborhood,” as not being “our kind,” as
(O’Connor, 2017) being “above” or “below” us. We hear epithets
aimed at persons because of their race, ethnicity,
The stories above are all real stories drawn from gender, or sexual orientation. As youths, we notice
recent news reports. Fernando, Heather, and Sarah that because of the way they dress, where they
are all worried about the impact of inequality in live, and who their parents are, some children are
their own lives and in society more generally, but treated differently and have more or fewer oppor-
the particular focus of their concerns differs, tunities than others. We are also smart enough to
depending on their individual identities, experi- see that there are class differences associated with
ences, and backgrounds. What issues of inequality different schools and even churches. These eco-
worry you? You might be thinking about the nomic differences show no sign of disappearing,
student loans you have taken out to pay for your and in fact they are at a record high.
education. Or perhaps you are concerned that Economically, the gap between the top and
American society has gone too far in granting the bottom has increased and class mobility has
rights to particular minority groups. The aim of stagnated in the last few decades. The middle
this book is to give you tools to be able to think class has been particularly hard-hit, with the per-
about these kinds of issues in a larger context. centage of adults in the U.S. living in middle-
What is inequality? Why does it exist? Is it good income households just over 50 percent in 2016,
or bad? This chapter begins with an introduction dropping from a high of 61 percent in 1971
to the topic of inequality and is followed by the (Kochhar, 2018). This apparent decline of the
terms and concepts you will need throughout the middle class has significant ramifications for a
text. We then turn to some key questions involv- democracy. Scholars as far back as Aristotle have
ing how we perceive inequality, the level of stressed the importance of a large and prosperous
inequality in the U.S. compared to other countries, middle class for the stability, cohesiveness, and
and whether inequality is inevitable. productivity of a society (Pressman, 2007). Yet
throughout the United States, the number of
middle-class neighborhoods has declined, while
THINKING ABOUT SOCIAL
both poor and rich neighborhoods have grown.
INEQUALITY
Additionally, the middle class has declined most
You need not look far to find articles in the precipitously in cities with high levels of income
popular press decrying the rise of inequality in inequality (Bischoff and Reardon, 2013). “With
the United States and around the world. Many a median income nationally of $78,056 in 2000
have likened this era to the famous gilded age of and only $78,442 in 2016, the middle class has
the late nineteenth century. Justin Fox in Bloomb- gained no ground over the past several years”
erg described the gilded age as an era of (Kochhar, 2018). Leicht and Fitzgerald put the
“exploding economic inequality, stagnant living matter bluntly: “Middle-class prosperity in the
standards, growing concern about monopolies, late twentieth and early twenty-first centuries is
devastating financial crises … brazen political an illusion” (2006, p. 4, italics in original).
corruption, frequent pronouncements that the As we see in Figure 1.1, the share of
American republic was doomed, and seemingly income controlled by the richest members of our
unending turmoil over race and national identity” society dropped from the early part of the century
Chapter 1 • Introduction: Social Inequality 3
FIGURE 1.1 Share of Income in the U.S. for the Top 1% and Top .1%, 1913–2017
Source: Amended from data from Saez (2018). Data accessed from https://eml.berkeley.edu/~saez/
TabFig2017prel.xls.
to the 1950s, then stayed relatively flat until the trolling most of the resources. Economic
1970s. Since that time, the overall trend has been inequality thrives in the United States.
one of rapid growth. This phenomenon of increas- Among those especially affected by
ing income inequality is not unique to the United inequality are blue-collar workers whose manu-
States. Nicholas Bloom, a professor at Stanford, facturing plants have moved or shut down. In
who was quoted in the New York Times, said, 2018, for example, General Motors announced
“This is a truly global phenomenon, and I don’t that several North American plants will be idled,
know any serious economist who would deny with 3,300 immediate layoffs and the threat of as
inequality has gone up. The debate is over the many as 14,000 in the long run. This happened, at
magnitude, not the direction” (Schwartz, 2016). least in part, because of imports of cheap Chinese
Despite a record low level of unemploy- steel. GM employee Nanette Senters stated:
ment, poverty levels still persist at over 12
percent. While this is the third year that poverty To just say, “You’re done,” is wrong. Yes, a
has declined, the percentage of families and chil- company is supposed to make money. But
dren in poverty remains higher than it was in they did get all kinds of money from those
2000 (Edwards, 2018). And while in 2017 the tax cuts, and they are still doing this. I am so
median household income in the United States disappointed. They always take things out
was $61,372, once we control for inflation, this on workers.
increase only brings incomes up to 1999 levels (Campbell, 2018)
(Fontenot, Semega, and Kollar, 2018). Further,
the 2016 compensation of chief executive offi- Despite the layoffs in the auto industry, the
cers (CEOs) in the top 500 U.S. corporations was national unemployment rate has been decreasing
271 times that of the average worker (Mishel and since 2010. This is good news for many workers
Schieder, 2017). As we will see in Chapter 2, who suffered spells of unemployment during the
wealth is even more highly polarized than income financial downturn. At the same time, many of
in the United States, with a small percentage con- the available jobs today are part-time or have
4 Chapter 1 • Introduction: Social Inequality
erratic schedules. This is problematic for people promising development in gender relations in
who need or want consistent full-time work. For that more women have been willing to come
example, Melody Pabon is having trouble sup- forward to report abuse and harassment, it has
porting her child on her part-time salary: also made it clear that the problem of gender-based
inequalities continues to persist in our society.
I’ve been working at Zara, a women’s cloth- The statistics and stories above demon-
ing store in Manhattan, as a cashier and on strate the persistence of inequalities, but they also
the sales floor for about four years. I also show their complexity. Let’s look back at the
just started school to become a medical three stories presented at the beginning of this
assistant. I used to be scheduled to close the chapter. All three of these individuals express
store a lot. On those nights I got home to insecurity and fear in our current environment of
Brooklyn after Mason, my four-year-old, rampant inequality. But their fears are different,
was already asleep. I wanted to be able to depending on their identities and backgrounds.
spend time with him in the evening, so I For Fernando, his ethnic background and citizen-
asked for an earlier shift. But at my job, ship status are central to his concerns. Heather
anyone who is not available 24/7 always expresses the concerns of the working class, and
seems to get their hours cut. And that is what Sarah worries about possibilities for women of
happened to me. I went from working 35 color. These stories tell us that inequalities are
hours to 25 over the course of a few weeks. located in a complex matrix of identities—race,
That’s almost a third of my paycheck. class, gender, nationality, sexuality (among
(National Women’s Law Center, 2015) others) are all statuses that individually and in
combination intersect to bring about different
The injurious impact of inequality is not confined experiences of inequality. This idea, called inter-
to the working class and the poor. In recent years, sectionality (defined briefly below and more
as companies downsize to meet competition and extensively in Chapter 7) is a central and guiding
maintain profits, the effects of social and concept for this text.
economic forces pushing people into different
economic circumstances have been increasingly
KEY TERMS AND CONCEPTS
felt by those in the white-collar ranks. Many of
the jobs lost at General Motors will be white-
Social Inequality and
collar jobs (Boudette, 2018).
Stratification
At the same time that many people are
experiencing downward mobility, advances in As we use it in this text, “inequality” refers to
computer and information technologies have situations where people have different amounts
created opportunities for others to become phe- of something valuable. That could be a material
nomenally rich. Five years ago, nobody had thing such as food or income, or it could be invis-
heard of Evan Speigel. Yet in 2015, the 25-year- ible like prestige or education. Inequality is not
old creator of the application Snapchat was necessarily problematic if most people agree that
among the richest Americans, with wealth well it is fair. For example, in surveys conducted all
in excess of a billion dollars (Wang, 2015). over the world (including the U.S.), about three-
Inequalities extend beyond economic quarters of respondents say performance and
issues, however. For the third consecutive year, effort are legitimate determinants of pay differ-
hate crimes have increased, up 16 percent since ences (Evans, Kelley, and Peoples, 2010). In
2016 (Eligon, 2018). While some of this increase other situations, however, we do not think
is likely due to increased reporting and aware- inequality is fair—for example, if we started dis-
ness, it is also clear that we are currently experi- tributing income based on people’s height, we
encing an era of increased racial tension and might hear some protest.
rhetoric. Similarly, though the #MeToo move- Social stratification is related to inequality,
ment, focused on sexual harassment, represents a but it refers to a “rare form of disparity that
Chapter 1 • Introduction: Social Inequality 5
c lusters social units by layers, or strata, which related areas. Unemployment, inflation, farm and
are homogenous with respect to a wide range of food prices, rent control, feminism, racism, and
goods (both autonomous and relative) and which welfare are all areas that involve income-
occupy a single, well-defined rank order” (Tilly, differential issues. In your own case, think about
1998, p. 27). In simpler terms, social stratifica- the number of ways that income is implicated in
tion refers to a situation where people have different areas of your life. Income, then, at least
unequal access to various resources based on the at first glance, would appear to be a more than
group they belong to, including material goods, adequate measure of economic inequality.
power, symbolic goods, and social status. If the However, when interpreting income statis-
inequality is due to a person’s membership in a tics, several limitations should be kept in mind.
particular group rather than individual character- First, income is only a partial measure of a fami-
istics, this is stratification, not simply inequality ly’s or individual’s economic well-being. It does
(McLeod and Nonnemaker, 1999, p. 321). In this not include the value of stocks, real estate, or
text, we are using “social inequality” and “strati- other noncash economic assets, and, second, if it
fication” interchangeably. is current income, it does not take into account
the income trajectory an individual may be on if,
for example, they are just beginning in a lucra-
Quintiles
tive career. Third, some of the estimates of
In order to describe the level of inequality in our income are based on pooled findings from several
society, we have to have a way to divide up the government studies that are not always identical
population. Like many other social scientists, we in methodology or measures of income. Finally,
have chosen to use quintiles. A quintile is simply and most significantly, the Internal Revenue
a fifth (20 percent) of the population. The top Service contends that income is underreported
quintile of income earners, for example, are the and not all persons who are required to file
20 percent of people who earn the most (80 income tax returns do so. The majority of under-
percent of the population earns less than they reported income is from businesses or self-
do). The “middle quintile” would be the people employment because these are sources that are
who earn more than 40 percent of people in the hard for the IRS to track (I.R.S., 2016). Related
population, but less than the top 40 percent of to this, high-income earners are more likely to
income earners. underreport income than low-income earners
(Johns and Slemrod, 2010).
While income provides important informa-
Income and Wealth
tion about people’s life circumstances, wealth
In many parts of this text we discuss how income gives us a more complete measure of a family’s
and wealth are distributed in society. Thus, it is economic power, since it consists of the value of
important that we have a good understanding of all the family’s assets minus its debts. Thus,
what the terms mean. Money income, as defined wealth includes the value of homes, automobiles,
by the Census Bureau, includes money from vir- businesses, savings, and investments. Even this
tually all sources, including wages or salaries, measure, however, does not fully reflect the
Social Security, welfare, pensions, and others. access of the wealthy to a greater number of
There are some advantages to using total money financial tools that serve to enhance their eco-
income when assessing the extent of economic nomic opportunities and market situation. For
inequality. In the first place, it is certainly more example, ownership of a great deal of stock in a
immediately quantifiable than many other meas- corporation that is interlocked or directly con-
ures, such as real estate. Second, income is nected with other corporations may give an indi-
highly valued in U.S. society and serves as a vidual indirect influence over the economic
basis on which people are evaluated by others. behavior of the latter organizations. Like poverty,
Third, income inequalities saturate and are wealth has economic implications beyond the
reflected in a number of other economically actual size of the holdings. Economic opportunities
6 Chapter 1 • Introduction: Social Inequality
are at least in part a function of the economic of the middle of the distribution generally stays
tools a person has at their disposal. stable. In other words, increases or decreases in
There is not a lot of consensus on how to inequality are driven by the top and bottom of the
measure the distribution of wealth, for several distribution. The Gini Index is also criticized
reasons. First, information about wealth is diffi- because it is unable to specify where changes in
cult to obtain. Virtually all data about it come the distribution occur. For example, if the Gini
from various field surveys and administrative Index goes down, it is impossible to know who
records (such as tax records). Often, individuals the winners and losers are. Finally, when you see
are hesitant to be interviewed, and this is espe- a Gini Coefficient, it is important to ask if it was
cially true of the wealthy who, for several calculated before or after taxes and transfers
reasons, may be sensitive about their wealth. (transfers include non-earned income like welfare
Sherman (2017) conducted in-depth interviews payments or financial aid). Inequality in societies
with New Yorkers in their thirties and forties is usually less after taxes and transfers.
who had a household income of over $250,000.
She commented:
Palma Ratio
In the interviews, most people described Concerns about the Gini Index led to the devel-
themselves as reluctant to talk about money opment of the Palma ratio. This is a ratio of
in any detail with anyone except their part- the income of the top 10 percent divided by that
ners and sometimes other close family of the bottom 40 percent. The interpretation of
members. They described money as deeply the Palma ratio is more intuitive than the Gini
private—‘more private than sex,’ in the Index. For example, if a country has a Palma
words of one psychotherapist I interviewed. ratio of 5, the top 10 percent receive five times
(p. 18) the income of the bottom 40 percent (Pizzigati,
2014). Joseph Stiglitz, a Nobel Prize-winning
Sherman found that her interviewees were very economist, and Michael Doyle, former Assist-
concerned about anonymity and they felt deeply ant Secretary-General of the United Nations,
ambivalent about their wealth, making them argue that all nations should set as a goal a
unwilling to be honest about the true extent of Palma ratio of less than 1 (Doyle and Stiglitz,
their holdings or spending. As a result, it is likely 2014).
that what wealthy people report on surveys may
not be accurate.
Globalization
Another term that is central to understanding
Gini Index
inequality is globalization. Globalization has
The Gini Index (often called the “Gini Coeffi- been defined in two basic ways, one which is nar-
cient’) is a popular way to assess the level of rowly economic and another which incorporates
inequality in a society. It measures the extent a variety of dimensions and is sometimes referred
of difference between the actual distribution of to as the “grand” theory of globalization. In this
income and a hypothetical situation in which latter view,
everyone receives the same percentage of
income. The ratio has a possible value range of Globalization refers to a multidimensional
0 to 1; 0 indicates complete equality, and 1 indi- set of social processes that create, multiply,
cates complete inequality. Some researchers crit- stretch, and intensify worldwide social inter-
icize the Gini Index because it is very sensitive dependencies and exchanges while at the
to the economic situation of people in the middle same time fostering in people a growing
of the distribution and it takes less account of the awareness of deepening connections between
extremes. This is important because research the local and the distant.
suggests that, across countries and time, the share (Myers Jr, 2014, p. 45)
Chapter 1 • Introduction: Social Inequality 7
This definition includes not only increasing eco- theorists who argued that inequality functions to
nomic ties between countries but also closer cul- ensure that there are incentives for the best
tural and social ties. A narrower conceptualization people to take the most important jobs in society.
of globalization views it as a strictly economic When people are well matched to jobs, society
phenomenon, involving the increase in direct functions effectively and everyone benefits.
investment, flow of workers, and free trade
between countries. It is primarily this latter defi-
Inequality in the U.S. in Global
nition that we will use in our assessment of glo-
Context
balization’s impact on inequality among nations
and within the United States. As we will explore further in Chapter 2, the
United States has notably high levels of
inequality. In Table 1.1 you can see how we rank
Intersectionality
against other large industrial countries.
First coined by Kimberlé Crenshaw (1989), the Remember that the Gini Index would be “0” in a
term intersectionality refers to the idea that situation of complete equality. Our number is
people experience inequality differently, depend- .39. The Palma Ratio shows that the top 10
ing on their particular status. Thus, while gender percent of earners has 1.8 times the income of
inequalities are certainly consequential, Black the entire bottom 40 percent. Looking more
women face very different discrimination than do
White women. Inequalities represent a “matrix of TABLE 1.1 Income and Inequality among
domination” (Collins and Bilge, 2016), whereby Households within Selected Rich
intersecting statuses and identities combine to Industrial Countries: 2017
create a system of exploitation and domination. Country Gini Palma Ratio
To fully understand the lived experiences of Coefficient
inequality, we need to understand how the com-
bination and intersection of statuses affect our Australia .34 1.3
lives. Austria .28 1.0
Belgium .27 0.9
Canada .31 1.2
Marxist vs. Functionalist Perspective
Denmark .26 0.9
on Inequality
Finland .26 0.9
Starting in Chapter 2, we introduce two of France .29 1.1
several important perspectives on inequality. The Germany .29 1.1
“Marxist” perspective is based on the work of Greece .34 1.3
Karl Marx, a German classical theorist, who Ireland .30 1.1
wrote in the middle of the nineteenth century. Italy .30 1.3
You will read about his life and theories in detail Netherlands .28 1.0
in Chapter 6. In brief, however, a “Marxist” New Zealand .35 1.4
framework traces our current level of inequality Norway .27 1.0
to capitalism. Because capitalism is a zero-sum Sweden .28 1.0
game, there will always be winners and losers. Switzerland .30 1.1
The winners work hard to maintain and increase United States .39 1.8
their advantage. One way that large business
Source: https://data.oecd.org/inequality/income-
owners seek to increase their profits, for example,
inequality.htm.
is by reducing the wages of workers. A function-
alist perspective on inequality is quite different Note: In Chapter 4, you will notice that we give a
different Gini Coefficient for the U.S. This is because
from a “Marxist” view. It sees inequality as the OECD calculates Gini using post-tax and transfer
having many benefits for society. In Chapter 7, income whereas many other organizations use
we introduce the ideas of Davis and Moore, two pre-tax and transfer.
8 Chapter 1 • Introduction: Social Inequality
policies that directly redistribute income. This U.S. has a particularly large gap. For example,
shows that they feel any fair distribution of goods CEOs earn 357 times the salary of the lowest
should be based more on equality of opportunity wage worker (Kiatpongsan and Norton, 2014).
rather than equality of result. In sum, a majority of Americans appear to
Perceptions of economic inequality are support the principle of income inequality as being
generally viewed differently and separately from fair, but they do not see the present system as
views of racial and gender inequality. With racial necessarily equitable. They also underestimate the
and gender inequality, inequalities of outcome extent of economic inequality in the country, and
are seen as evidence of inequalities of oppor- they are decidedly split on whether the government
tunity. That is, if we find that there are differ- should do something about income inequality. It is
ences in outcome by race, it is a fair assumption clear that Americans’ attitudes about inequality are
that there are unfair obstacles in the way of some, complex and often contradictory.
and thus the inequality is seen as unjust. With
economic inequality, however, inequality of
Is Inequality Inevitable?
outcome coexists with inequality of opportu-
nity—and inequality of outcome may be due to Perhaps the most basic issue relates to the inevi-
differences in efforts or skills rather than oppor- tability of inequality. It is important to clarify
tunity. Thus, as McCall suggests, an intersec- that reference is being made here to institutional-
tional model of income inequality should ask: ized rather than individual inequality (i.e., struc-
tured inequality between categories of individuals
How are perceptions of rising class that are systematically created, reproduced, legit-
inequality affected: by perceptions of trends imated by sets of ideas, and relatively stable). We
in racial and gender inequality? by racial and would not be studying this phenomenon if it were
gender differences in education, wealth, not a prominent feature of contemporary society
poverty, employment, and residential with significant consequences. To ask whether it
segregation? by racial and gender identities? is inevitable is to address the origins of inequality
and by intersections of these with social (i.e., whether it is caused by natural or artificial
class identities and social movements? factors). If social inequality is directly linked to
(2014, p. 30) conditions inherent in the nature of groups of
individuals or society, then little might be
Regardless of whether Americans support the expected to eliminate it. On the other hand, if
general idea of inequality, most agree that we such inequality arises because of the conscious,
have too much of it today. About two-thirds think intentional, and freely-willed actions of indi-
that the current amount of income inequality is viduals or the structures they create in society,
too large, and 63 percent believe wealth and then perhaps it can be altered.
income should be more equally distributed One side argues that inequality is always
(Newport, 2015). Most Americans—as well as going to be present because of personal differ-
residents of other countries—believe there should ences among individuals either in the form of
be a limit on the amount of inequality. An inter- basic differences in their own makeups or differ-
national survey of forty countries, including the ences in the amount of effort they expend. A
United States, showed that citizens feel that those large majority of Americans would appear to
in the highest-ranking occupations should be agree. A recent poll, for example, found that 43
paid, on average, 4.6 times the salary of those in percent of Americans think that the rich got that
the lowest-ranking positions. This ratio varies way because they worked harder than other
across countries with a low of 2:1 in Denmark to people (42 percent said it was due to advantages
a high of 20:1 in Taiwan. Respondents in the U.S. they had been given) (Dunn, 2018). If there is an
said that the ideal gap is 7:1. Actual income gaps open society and if people vary in their talents
are much higher (on average there was a 10:1 and motivations, then this would suggest that
ratio across all the countries in the study) but the inequality is inevitable, a simple fact of society.
10 Chapter 1 • Introduction: Social Inequality
of inequality for individuals and society. Chapter Each chapter ends with a short set of ques-
12 looks at how health and the environment have tions and film suggestions, addressing some critical
a profound impact on the outcomes of individual issues raised by the chapter. They are aimed at
people and communities. In Chapter 13, we forcing you to come to grips with central problems
examine crime and the criminal justice system. in inequality, often by looking at inequality in your
We ask how categories including socioeconomic own life. The Web Connections sections suggest
position, race, and gender affect the steps in the various websites where you can get more informa-
criminal justice process from the chances of tion and which you can use as bases for course
being arrested to the likelihood of being given a exercises. These should broaden and deepen your
long sentence. Street crimes, white-collar crimes, understanding of inequality. Many chapters also
and hate crimes are each discussed. We also contain a brief Nutshell covering a topical issue
show how inequality plays a role in determining from the popular press or a Mini-Case addressing a
who commits a crime in the first place. specific issue to be analyzed. Each issue is intro-
Part 5 of the book explores the possibility duced to serve as a point of departure for class-
for change. In Chapter 14, we examine how room discussion. Finally, a Glossary of Basic
social movements—both current and historical— Terms used in the text follows the last chapter.
have changed inequality. These movements The lines separating the social sciences are
include the labor, civil rights, and women’s often vague, the result being that discussions in
movements as well as #metoo and #blacklives- the book often will draw on the work of econo-
matter. All of these movements can be viewed as mists, anthropologists, as well as sociologists,
reactions to inequalities that were perceived as and others. In addition, there is material from
unjust. Chapter 15 is a chance to think about other countries. These inclusions, hopefully,
alternatives to our current system and ways that result in a more thorough and well-rounded per-
you might be able to become involved in chang- spective on the structure and process of social
ing how goods are distributed in society. inequality in the United States.
Summary
So far, we have learned that inequality is a pared to its industrial counterparts, the United
central topic in society that affects many areas of States ranks at the top in terms of its income and
our lives. As in the United States, there are signi- wealth inequality. Research tells us that Ameri-
ficant differences in economic inequality among cans hold significant misperceptions about the
nations. Generally, economic inequality is greater level of inequality in society but that, in general,
in poorer countries, although there are major they would prefer to see a more equitable distri-
variations among industrial nations. When com- bution of wealth and income.
Critical Thinking
1. Try to think of a personal relationship you have problem of those living below the middle class?
with someone who is unequal to you in some way, Explain your answer.
and yet the inequality appears to have few negative 3. Is it possible for equality in political power to exist
effects on you or your relationship. What character- alongside economic inequality?
istics lessen the impact of the inequality in this rela- 4. Gazing into your crystal ball, do you think the
tionship? Discuss some lessons from this long-run impact of increasing relationships among
relationship that might be used to diminish the neg- peoples around the world will lead to a leveling of
ative effects of inequality in society as a whole. inequalities among them, or will it solidify or
2. Is social inequality a problem that demands the increase existing inequalities?
full attention of society, or is it merely a personal
12 Chapter 1 • Introduction: Social Inequality
Web Connections
Several of the following chapters use information and representative of the whole population? (3)
obtained from national polls, many of which are Were any important groups excluded from the
published on the Internet. The National Council on poll? (4) Was the technique used in the interview
Public Polls suggests that among the questions you likely to affect the answers received? (5) Was the
should consider before accepting poll results are wording of the questions neutral or biased in some
the following: (1) Who sponsored and who con- way? (6) Are the survey results still valid or are
ducted the poll? (2) Is the sample large enough they out-of-date? (Carr, 2005).
PART 1
Class is not discussed or debated in public because class identity has been stripped from
popular culture. The institutions that shape mass culture and define the parameters of public
debate have avoided class issues … [F]ormulating issues in terms of class is unacceptable,
perhaps even un-American.
(Mantsios, 2004, p. 193)
But their reluctance to discuss class does not mean that Americans do not think about it. The
meaning of class for the public is rooted in their everyday experiences and relationships.
Awareness of class differences begins early; even preschool children categorize individuals as
rich or poor and make judgments about them on that basis (Horwitz, Shutts, and Olson, 2014).
By elementary school, children can reliably identify social class location, and they have definite
ideas about behavioral and social differences between groups (Mistry, Brown, White, Chow,
and Gillen-O’Neel, 2015).
Class structure is also a subjective reality for adults. When asked about it, people in the
United States are much more likely to agree on and have clear images of the top and bottom of
the class structure than they are of the middle classes, which are seen as more amorphous and
heterogeneous. The perceived distinctiveness of the top, for example, is based not only on their
wealth, but also on the social and cultural boundaries that are seen as separating them from
15
16 Part 1 • Extent and Forms of Social Inequality
those below. Because of their extraordinary class position. Researchers have found that the
wealth, those at the top of the economic hier- higher someone’s education is, the higher the
archy often take on notoriety or celebrity status social class in which they place themselves. Sim-
(e.g., Bill Gates, the Kennedy family). Those ilarly, the social class of the person’s family of
who have “old wealth” are often very guarded origin helps determine subjective class position
about who is let into their group and who is not, (Hout, 2008; Speer, 2016). We also know that, as
which again identifies them as unique and people age, they tend to identify with higher
different from those below them (Howard, 2008; classes. In contrast, being non-White, rural, or
Kendall, 2002). The popular image of the bottom from Northeast U.S. predicts lower rankings on
is similarly clear, with that perception being subjective social class (Bird and Newport, 2017;
dominated by stereotypes of individuals who are Speer, 2016).
chronically on welfare, homeless, and often of One’s subjective social class is partially
minority status. The economic middle, in con- determined by occupation. Occupations that have
trast, is seen as mainly made up of white-collar a lot of freedom and autonomy and those that
professionals, semiprofessionals, and highly paid have lower levels of intensity (meaning that
blue-collar workers, that is, a loose collection of workers have enough time to complete their jobs)
widely varying individuals not nearly as homo- are generally classified as higher class (Horowitz,
geneous in the public’s eye as those at the top 2016). With respect to other criteria, married
and bottom. Below them, the working class is men and women vary in how much they consider
often described as being composed of those in their separate incomes and educations when
less-skilled, routine white-collar and blue-collar describing their class position. Studies indicate
positions. When asked to identify how many that during the 1970s and 1980s, married women
“rungs” there are on the class ladder, the majority moved from “borrowing” their husband’s class
of Americans (88 percent) identify five or more identification to using both their own economic
(Davidai and Gilovich, 2018). contribution and their husband’s (“sharing” class
Most Americans feel at least fairly strongly status). Men during these same years, however,
that they belong to a particular class (Hout, continued to gauge their class based only on their
2007). When asked to place themselves in the own contributions (Davis and Robinson, 1988).
class structure (“subjective class”), usually Today, couples are more likely to agree that both
80–90 percent of adults say that they are either the husband’s and wife’s incomes affect their
“middle” or “working” class. In 2016, a survey class position equally, but they differ on whether
by the Gallup Organization indicated that 58 their own as well as their spouse’s education help
percent of the adults interviewed considered define their class position (Yamaguchi and
themselves as “middle” or “upper-middle” class, Wang, 2002). What all these research results
while 30 percent classified themselves as suggest is that while social class is clearly a
“working” class. Only 3 percent thought they salient concept for Americans, how people
were “upper class,” and 8 percent labeled them- decide on their own class is complicated.
selves “lower” class. Interestingly, while income
is a moderately strong predictor of subjective
TWO VIEWS OF THE U.S. CLASS
class identification, it is not determinative. For
STRUCTURE
example, less than 10 percent of Americans who
have an income between $30,000 and $40,000 a Mirroring popular disagreements are debates
year report that they are “lower class” even among scholars about the nature of the class
though their income is well below the nation’s structure in the United States. Some portrayals of
median. At the other end of the spectrum, only a class structure use sets of very diverse criteria,
third of people who make over $250,000 identify called a “socioeconomic definition of class,”
as “upper class” (Bird and Newport, 2017). whereas others try to be more faithful to
There is a large literature looking at the “Marxist” criteria. Neither of these approaches is
factors—besides income—that influence subjective inherently better than the other, and each focus
Chapter 2 • Class, Income, and Wealth 17
on criteria that have been found to have separate tiated from other families above or below them
effects on individuals’ life conditions. Each with regard to characteristics such as occupation,
approach attempts to identify meaningful breaks income, wealth and prestige” (p. 11). Using this
in the class system, and, as such, each is useful in definition, the Gilbert-Kahl model proposed that
characterizing different aspects of economic the United States contains six major classes. A
inequality. Consequently, rather than presenting condensed version of this model is presented
only one model of the U.S. class structure, in the here. The percentage of households in each class
following sections we will examine both socio- is enclosed in parentheses.
economic and “Marxist” images of the U.S. class
system. 1. Capitalist Class (1 percent): Graduates of
high-ranking universities who are in top-
level executive positions or are heirs who
Class Structure as a Continuum
have an income average of $1.5 million
Traditionally, U.S. researchers have defined mainly from assets.
social class in terms of occupational status, 2. Upper Middle Class (14 percent): Indi-
education, and/or income. Individuals or families viduals with at least a college degree who
that fall in the same category on these dimen- are in higher professional or managerial
sions are then said to be in the same social class. positions or owners of medium-sized busi-
Generally, people receive a score based on their nesses who have incomes of about $200,000.
placement on these variables; in essence, social At the top of the upper middle class, are very
class is determined by a statistical score. Since highly paid professionals (such as doctors or
these scores are continuous, with small differ- corporate lawyers) who earn hundreds of
ences in scores between individuals in adjacent thousands of dollars but rely on their income
positions, the class hierarchy is frequently viewed rather than assets. This subgroup is called
as a continuum where the boundaries between the “working rich.”
classes are not always clear and distinct. Classes 3. Middle Class (30 percent): Individuals who
may merge imperceptibly into one another and, have high school degrees and maybe some
as a result, boundary determination becomes an college who are in lower managerial or
important problem. white-collar, or high-skilled, high-pay, blue-
Another characteristic of this approach is collar occupations who make about $85,000
that the dimensions used to measure social class a year.
are not all purely economic in nature. Occupa- 4. Working Class (25 percent): Persons with
tional status is essentially a measure of the pres- high school degrees who are in lower-level
tige of an occupation—that is, it reflects the white-collar (e.g., clerical, sales workers) or
subjective judgment of individuals about an occu- blue-collar positions (e.g., operatives) whose
pation. Education is also a noneconomic phenom- incomes are about $40,000 per year.
enon. The result is that this measure of social class 5. Working Poor (15 percent): Those with
is multidimensional in that it mixes economic with some high school who are service workers
social dimensions of inequality. Consequently, it or are in the lowest paid blue-collar, and
is often referred to as socioeconomic status clerical positions who have average incomes
(SES). SES measures do not assume any kind of of $25,000.
necessary relationship between the classes. There 6. Underclass (15 percent): Individuals with at
is no assumption, for example, that the upper and best some high school education who work
working classes are in conflict with each other. part-time, are unemployed, or are on welfare,
Classes are merely the result of scores on a series and who have incomes under $15,000.
of socioeconomic dimensions.
As an example of this approach to class, In surveying different models of U.S. class struc-
Gilbert (2018) defined social class as “groups of ture that use several kinds of socioeconomic cri-
families, more or less equal in rank and differen- teria, there are some remarkable similarities as
18 Part 1 • Extent and Forms of Social Inequality
well as differences among them. These models and to place those who do complex, high-skilled,
usually see the structure as being composed of well-paying blue-collar work into the middle
five to seven classes, rather than as a dichotomy class. As technological change occurs, and some
or trichotomy. Also, the proportion of the popu- physical labor by humans is replaced by
lation said to be in each class in each model is machines, the character of the working-class
very similar. Generally, the working and middle changes correspondingly.
classes, in which the majority of the population
is placed, are considered to be about equal in
Class Structure as Antagonistic
size, and the upper class is generally said to be
Categories
around 1 percent. Then, depending on whether
employed as well as unemployed people are In contrast to the continuum approach, Marxist
included in the lower class, its percentage can sociologists generally object to the mixing of
range from 10 to 25 percent. economic, status, and other socioeconomic vari-
Some of the most significant differences in ables because they believe it dilutes what Marx
traditional models center on the criteria used to considered to be the core economic meaning of
place individuals in various classes. One notable social class. Marx believed class was basically an
difference lies in the distinctions made about the economic phenomenon defined by an individu-
lower class. Some researchers simply include all al’s position in the social relations of production,
those who are poor, while others draw a line by control over the physical means (property)
between those who are poor but work and those and the social means (labor power) of produc-
who are chronically unemployed and poor for tion. In other words, class is not defined by
long periods of time. The term underclass came income or occupation but rather by ownership/
into popular use in the 1980s and 1990s to refer control in the system of production. In this view,
to the latter group. A number of critics have introducing other socioeconomic variables, such
argued, however, that the term has come to have as prestige or occupational status, only distorts
a pejorative and racialized meaning (Gans, 1996; the meaning of social class. Thus, in the Marxist
Wacquant, 2007). In other words, the term is definition, class is much less multidimensional in
used to refer symbolically to poor urban Blacks nature. Moreover, the class system is not a con-
and it implies that poverty is solely the result of tinuous hierarchy in which the lines between
deviant behavior, rather than emphasizing struc- classes blur and classes merge into each other.
tural roots. For this reason, we have chosen to Rather, the boundaries between the classes are
use the term “severely disadvantaged” through- discrete and clear. Finally, classes in this view
out this text except when we are discussing a are defined by the exploitation that exists
model, such as Gilbert’s, that uses the between them and by the interconnection
underclass term. between the functions of each class. This means
Another difference among the models of that a given class is defined by its relationship to
class structure concerns the way they treat white- another class. Workers are members of the
collar and blue-collar occupations. Traditionally, working class, for example, because of the nature
blue-collar work has been considered manual in of their relationship to capital and capitalists.
nature, while white-collar work has been defined Different classes perform distinct but interrelated
as nonmanual. Manual work was generally functions in capitalist society.
viewed as requiring primarily physical and While some Marxists define class strictly
routine tasks rather than mental and intricate in terms of structural position, others incorporate
skills/tasks. Recently, however, the lines distin- a social-psychological dimension into their con-
guishing the nature of blue-collar and white- ception, arguing that class consciousness or a
collar jobs have become blurred. The routine shared sense of belongingness and organized
nature of much low-level white-collar work has opposition must also be present for social classes
encouraged some analysts to place individuals to be present—that is, individuals must identify
who do this kind of work into the working class, with each other and understand their real
Chapter 2 • Class, Income, and Wealth 19
r elationship to other classes and act on that best, and it pales in comparison to some Euro-
knowledge. Kraus, Piff, and Keltner (2011) pean countries, such as Sweden, France, and
stated flatly that the concept of class has both Italy. There have been specific instances when
subjective and objective dimensions with the workers have banded together and fought corpo-
subjective element being a sense of unity that rations, despite dangers to each worker’s welfare
develops as a class emerges: (McCall, 2008). But while evidence suggests that
there is some consistency between class position
Social class reflects more than the material and attitudes toward corporations and manage-
conditions of people’s lives. Objective ment, American workers as a whole have not
resources (e.g., income) shape cultural prac- acted on their beliefs in the political arena. The
tices and behaviors that signal social class. lower level of unionization and the absence of a
These signals create cultural identities working-class political party in the United States
among upper- and lower-class individuals— have slowed the development of class solidarity
identities that are rooted in subjective per- (Sernau, 2006).
ceptions of social-class rank vis-a-vis others. Perhaps the most sophisticated attempt to
(p. 246) analyze the class structure of the United States in
Marxist terms comes from Erik Wright. Wright’s
In this approach, people become a real social characterization of U.S. class structure uses
class when they acquire a common culture and exploitation as the defining element (Western and
political awareness. In addition to occupying the Wright, 1994; Wright and Cho, 1992). Classes
same location or position in relation to the means and class locations are distinguished by an indi-
of production, then, people in the same social vidual’s ability to exploit or be exploited on the
class “share the distinctive traditions common to basis of (1) property; (2) organizational author-
their social position” (Szymanski, 1978, p. 26). ity; and (3) expertise or skill.
This common identity, especially when it Combining these three criteria, Wright
involves awareness of common exploitation and (2000) identified several class “locations” within
engagement in class struggle, Marx suggested, is this structure of class relationships. The specific
what welds an aggregate of people into a social categories in his model are shown graphically in
class, or a “class-for-itself ” (Carrier and Kalb, Figure 2.1 but, in broad strokes, the most ele-
2015). mental distinction in Wright’s model is between
The existence of a class-for-itself means those who have property and those who do not
that it exists as a self-conscious group ready to (owners vs. nonowners). Among owners, Wright
advance its own interests. The strength of this separated groups based on how many people they
kind of class consciousness among the working employ. Application of the other two criteria of
class in the United States has been moderate at class location, authority and expertise, results in
Relation to
Owners Employees Authority
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6PDOO ([SHUW 6NLOOHG 1RQVNLOOHG 6XSHUYLVRUV
(PSOR\HUV 6XSHUYLVRUV 6XSHUYLVRUV 6XSHUYLVRUV
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Relation to Scarce Skills
FIGURE 2.1 Erik Olin Wright’s Model of Class
20 Part 1 • Extent and Forms of Social Inequality
distinctions among nonowners. For example, is an older person without a college degree who
supervisors and managers are distinguished by does not have the same potential to leave fast
the fact that they have more authority than other food work for something more lucrative. This
workers. Positions also differ in the level of skills “temporal” aspect of class position means that to
and expertise required, with some positions define class location fully, one must take into
requiring advanced credentials (“experts”), others account the span of the broader career trajectory
requiring less training (“skilled”), and a final cat- in which the current position is embedded. The
egory that requires no advance training (“non- addition of the concepts of mediated and tem-
skilled”). In this scheme, the owners might be poral class position makes Wright’s characteriza-
considered the capitalist class, and the nonskilled tion of class structure more complex as well as
workers compose the working class. The remain- realistic.
ing groups among employees (managers, super- Several critics have raised questions about
visors, experts, and skilled workers) might be Wright’s measure of class position. Resnick and
viewed as the middle class because they have Wolff (2003) argue that classes of employees can
characteristics of both those above and below be distinguished according to whether they
them. In a real sense, as Wright has put it, these (1) produce surplus (workers), (2) appropriate it
employees occupy “contradictory” locations (capitalists), or (3) are given part of the distribu-
because not only are they exploited as workers, tion of the surplus that is produced (managers/
they also exploit others because of their authority supervisors). This would suggest that there are
and/or expertise assets. three main classes in a capitalist society such as
Wright’s model gives a rather static, broad the United States. Following Marx, Resnick and
view of the class structure and how persons Wolff define workers as “productive” because
might be located within it. But he has pointed out they actually create the surplus, while capitalists,
that class position also depends on the relation- managers, and the like are classified as “unpro-
ship a person has with others in their family— ductive.” Resnick and Wolff do not contend that
relationships that may link the individual to their class model is better than Wright’s, but only
different classes. In other words, a person’s own that there are potentially several models, each of
position is “mediated” by the position of others. which taps a different part of social and eco-
For example, a woman might be a lawyer (an nomic reality and, therefore, helps us to under-
“expert”) while her husband is a supervisor in a stand some parts of class reality while ignoring
factory (“nonskilled supervisor”). Wright asks others.
how having different class positions in one It should also be noted that there are
family affects each person’s class position. He researchers who argue that we have moved past a
points out that families of origin matter too— time when defining class based on ownership of
making a college professor whose parents capital or authority helps to explain group differ-
worked as janitors (“nonskilled workers”) experi- ences in life conditions, attitudes, and lifestyles.
ence their own class position differently from a The modern workplace, they argue, is simply
professor whose parents were also academics different from how it used to be. For example,
(“experts”). These varying sets of relationships technological advances have increased occupa-
connect each of these workers to the class struc- tional specialization and thus divisions between
ture in different ways. occupations have become increasingly apparent.
In addition, Wright points out that two While 100 years ago, it may have been fairly
individuals may be in the same class at a given easy for workers to move between different kinds
time, but one is located on a clear and recognized of manual labor, it is much harder to move
career path that will take that person to a higher between modern occupations. For example, a
position. For example, two people might be computer programmer would be hard pressed to
working together at the same fast food restaurant, suddenly become a graphic designer. Occupa-
but one is a college student who will end up with tional associations also limit who can join par-
a high-paying job after graduation and the other ticular occupations through credentialing,
Chapter 2 • Class, Income, and Wealth 21
increasing people’s identification with their occu- p ayments). Investment capital is money used in
pation (Grusky, Weeden, and Sørensen, 2000). ways that are “generative”—in other words, they
There is some empirical support for the conclu- increase their value over time. This includes home
sion that occupations are correlated with a range ownership, a retirement account, or owning stocks.
of outcomes (Weeden and Grusky, 2005), but People generally only have investment capital if
research continues to show that Marxist-inspired they have enough consumption capital to meet
models also hold explanatory power. For their basic needs. Skill capital means knowledge
example, Wodtke’s work (2017) shows that a that can be exchanged on the labor market. For
class model based on ownership of capital and example, a lawyer has a specific set of skills
authority strongly predicts income as well as gained from going to law school. Finally, social
political and social attitudes. capital refers to the networks (family, friends, and
As we have seen, there is lack of agree- acquaintances) people can utilize to provide
ment on the exact definition and measurement of support and information about jobs. This model
social class, even among Marxists. Marx never recognizes that there can be class differences
gave an explicit, clear-cut definition of class. He within occupations, for example, between a lawyer
suggested various definitions and different working in a large urban firm and one working
numbers and types of social classes at different alone in an office in a small town.
points in his writing. Nevertheless, his approach In their analysis of the U.S. economy,
and that of contemporary Marxist analysts are Wysong, Perrucci, and Wright find that class is
clearly different from those discussed earlier who arrayed in a double diamond shape (see Figure
define class in broader socioeconomic terms. In 2.2). The privileged class includes owners, employ-
sum, Marxists generally view classes as (1) dis- ers, managers and professionals while the new
crete rather than continuous, (2) real rather than working class (which makes up 80 percent of the
statistical creations, (3) economic in nature, and population) includes everyone else (from profes-
(4) conflict-ridden. In contrast, traditional conser- sionals in non-elite firms to the self-employed to
vative approaches define classes as existing along
a continuous hierarchy, largely statistically
created, and being multidimensional and relat- Superclass:
ively harmonious in their relationships. Owners and Employers
Credentialed
Class:
A Hybrid Model Managers and
Privileged
Professionals
Wysong, Perrucci, and Wright (2014) propose a Class (20%)
model that is a hybrid between a continuum and
a Marxist model of class. Like Marxist models, it
posits two major antagonistic classes with little Comfort
Class
movement between them. Like continuum
models, however, the model sees class as Contingent Class:
embodied in people, not in occupational posi- Wage Earners and
tions. In other words, individual people have the Self-Employed
different kinds of capital giving them different New
class positions. Marx thought that class was Working
Excluded
instead embodied in the labor market position an Class
Class
(80%)
individual occupied.
Wysong, Perrucci, and Wright believe
there are four types of capital that determine FIGURE 2.2 Double-Diamond Model of Class
class. Consumption capital can be thought of as Structure and Class Segments
post tax income and it includes wages and Source: Adapted from Wysong, Perrucci, and Wright
government transfers (for example, welfare (2014).
22 Part 1 • Extent and Forms of Social Inequality
the working poor and unemployed). At the same of European countries, and attempts by Latin
time, the authors believe that there is a gradient of American nations to better integrate their eco-
class within each diamond. This allows for some nomies all have economic repercussions for the
mobility within either the upper or lower dia- United States.
monds, meaning that it is possible to move from Downsizing, lean production, and the
being unemployed to being part of the working exportation of jobs to cheaper foreign labor
poor, or to move from being a professional to an markets have been primary ways U.S. manufac-
owner. turers have reduced costs and responded to
foreign competition. Successful penetration of
U.S. firms into foreign countries may mean
Global Variation in the Class
higher profits for some, but it also spells lower
Structure
incomes for many workers, both white-collar and
The class structure of any society is shaped by blue-collar workers alike. Higher unemployment
the political, cultural, economic, and technolo- means lower incomes for those affected, in part
gical context in which it is embedded. Politically, because it means lower pressures for increased
changes in rules and resources governing labor- wages. Not surprisingly, job loss and fear of job
management conflict, including unionization of loss dampen appeals for wage increases, as does
workers, affect class conditions and relationships. the weakness of U.S. labor’s power (Aaronson
Government trade and immigration policies, and Sullivan, 1998; Volgy, Schwarz, and
poverty programs, tax laws, and restrictions on Imwalle, 1996). Unsuccessful foreign penetration
business help determine the size and composition by U.S. corporations, on the other hand, means
of classes, the extent of income and wealth fewer exports for U.S. firms, lower profits, and,
differences, and the channels for moving up and very likely, lower stock prices. The latter means
down the class ladder. Culturally, broad-based declines in the wealth of those who own these
values about democracy, equality, and justice can stocks. Thus, individuals throughout the entire
serve to temper the extent of social inequality, class system are affected by international eco-
whereas the presence of prejudice, stereotypes, nomic events, but not in the same ways.
and derogatory ideologies about different groups The demand for goods produced by U.S.
can perpetuate such inequality. Finally, economic employees fluctuates with economic and political
and technological developments have become changes in other countries. For example, the dis-
increasingly significant for the changing com- appearance of almost 5.7 million U.S. manufac-
position of classes and for shifts in the distribu- turing jobs between 1998 and 2013 was linked to
tion of individuals among classes. These a wide range of international issues. In the 1990s,
developments need to be emphasized. as economic crises occurred in Asian markets,
In recent years, technological develop- their currencies were devalued, prices of their
ments have sped the integration of national eco- goods dropped, and importation of these goods
nomies into a global network. What happens to into the United States became more attractive
steelworkers in Ohio, textile employees in North (Scott, 2015). Between 2009 and 2018, the
Carolina, and electronic-component workers United States complained numerous times that
across the country is directly tied to the inter- the Chinese government manipulated the value
national context within which the U.S. economy of its currency so as to make its exports more
operates. The ties created among nations make attractive, resulting in lower demand for U.S.-
each more vulnerable to economic and political made goods. Trade deficits continue today, not
shifts in other countries. Like a giant web, pres- only with China, but also with countries includ-
sure on any part causes reverberations through- ing Mexico, Germany, and Japan (U.S. Census
out the system. The growth of China and India as Bureau, 2018c). It should be noted, however, that
economic powers, political instability in the many economists argue that there are some bene-
Middle East, economic changes in Russia, the fits to trade deficits. For example, they signal that
possible exit of Britain from the economic union our economy is strong and that consumers have
Chapter 2 • Class, Income, and Wealth 23
high confidence (causing them to buy a lot of institutions, allowing them to engage in high-risk
products). We also benefit when our trading part- lending and investment strategies. Credit default
ners end up reinvesting much of their profits back swaps (CDSs) are one example of financializa-
into the U.S. (for example, in the form of buying tion. A CDS involves three parties: an institution
Treasury bonds), boosting our economy (Con- who offers a financial investment, the people
stable, 2017). who buy the investment (the investor), and a
Just as international events and conditions second financial institution who insures the bond
affect economic fortunes in the United States, so for the investor. It’s complicated, but let’s say
too do U.S. activities affect economic conditions that Ford Motor Company decides to offer ten-
in other countries. The deep economic crisis of year bonds to investors. The potential investors,
2008–2010 originated in the United States but however, worry that Ford will end up defaulting
had worldwide implications. American mortgage and they will lose their money. Another financial
problems and falling house prices, for example, institution can insure the bond (for a fee), guar-
devalued stocks in markets in Europe and else- anteeing that the investor will regain their invest-
where. This, in turn, reduced the wealth of many ment if Ford defaults (Arentsen, Mauer,
average citizens. The very interconnectedness of Rosenlund, Zhang, and Zhao, 2015; Stulz, 2010).
nations means that problems in one of them, New financial products like these CDSs began
especially a dominant one like the United States, taking up a larger percentage of the economy.
have severe repercussions for others. A groundbreaking study looked at the
effects of financialization on income inequality.
The researchers found that financialization
EMERGING ISSUES IN THE SHAPING
caused workers to lose bargaining power. As
OF THE U.S. CLASS STRUCTURE
companies put more of their resources into finan-
There have been a number of recent economic cial endeavors and less into production, workers
changes that shape our class structure. Many of began to be less important to the profit margin.
these changes can be subsumed under the broad Simultaneously, companies began to set CEO
heading of neoliberalism. Neoliberalism refers compensation based on the value of stock instead
to a set of beliefs that revolve around the capital- of product market share. This made productivity
ist free market. People who subscribe to neo- (and hence workers) less important to CEOs, dis-
liberalism, for example, see government couraging them from raising wages (Tomaskovic-
regulation as inhibiting the power of the market Devey and Lin, 2011).
to self-correct and they support privatization as a Another aspect of financialization that
way to increase efficiency. Neoliberal principles impacts inequality involves stock buybacks.
have supported a trend of financialization in the Since changes in the regulations in 1983, com-
United States. While there is some debate about panies can choose to purchase back their own
what the term means, financialization generally stock shares. They do this so there will be fewer,
refers to financial institutions and transactions but more valuable, shares on the market. Stock-
coming to play an increasingly large role in the holders benefit because their shares are worth
economy. As part of this, non-financial institu- more and the CEO benefits in two ways. First,
tions have begun participating more in the finan- many CEOs receive part (often the majority) of
cial market (Tomaskovic-Devey and Lin, 2011). their compensation in stock options. When the
For example, companies such as Sears (not tradi- stock’s price goes up, the CEOs gain. Second, if
tionally a financial institution) have entered into their compensation is tied to the price of the
the financial market by offering loans and engag- stock, they receive a large bonus when the stock
ing in financial trading. price rises. At the same time, workers suffer
The trend of financialization began in the because money that could be put toward building
1970s and accelerated quickly from the 1980s new plants, researching new products, or paying
through the early 2000s. It was made possible by wages is being used to buy back stock (Hanauer,
the deregulation of banks and other financial 2015). While some types of financialization have
24 Part 1 • Extent and Forms of Social Inequality
slowed somewhat since the Great Recession involves home health aides (47 percent), personal
(Lapavitsas and Mendieta-Muñoz, 2018), stock care assistants (39 percent), and physician assist-
buybacks have not. In fact, the tax cuts that Con- ants (37 percent). The growth in these occupa-
gress passed at the end of 2017 appear to have tions is largely driven by the aging of the U.S.
led to a wave of buybacks. In just the first three population. A final area of growth is in techno-
months of 2018, companies bought back $200 logy fields including software development (31
billion of their stock—a full doubling from the percent) and information security analysts (28
year before (Otani, Rubin, and Francis, 2018). percent). While the technology occupations tend
A second important trend affecting income to have high average salaries (around $100,000
inequality involves changes in the types of jobs per year), the other growing occupations have
that are available in the economy (called “the much lower levels of pay. For example, solar
occupational structure”). The occupational panel installers make an average of $39,490 per
structure can be affected by factors including year and home health aides make $23,210 (U.S.
technology, globalization, availability of Bureau of Labor Statistics, 2018b).
resources, and demand for particular goods. Finally, as we look at the class structure, we
Research shows, for example, that the U.S. occu- must consider the rise of the contingent work-
pational structure has changed greatly between force. Contingent workers are not employees of
1960 and today, with many fewer jobs involving a company but rather are hired on an as-needed
routine tasks. This is largely due to technological basis as independent contractors or consultants.
innovation leading educated workers to have an One type of contingent work involves jobs in the
increasing edge over the less well educated gig economy. Today one in five jobs in the U.S.
(Atalay, Phongthiengtham, Sotelo, and Tannen- is held by a contract worker. Between 2005 and
baum, 2017). 2015, 94 percent of new jobs in the U.S. were
The Bureau of Labor Statistics tracks the contingent (Katz and Krueger, 2016). These
occupational structure. They predict that the top- workers can be found across the occupational
two fastest-growing occupations between 2016 structure—from factory workers to lawyers. The
and 2026 will be solar panel installers (105 reason contingent labor is attractive to companies
percent growth) and wind turbine technicians (96 is because it is cheaper than hiring full-time
percent growth). These jobs are both related to a workers. Contract workers can be laid off when
reorientation of the economy toward the produc- they are not needed. Companies also do not have
tion of green energy. A second area of growth to pay as much in benefits for contingent
MINI-CASE 2.1
II
It is in business and in professional pursuits that the occupational
progress of women, and their emancipation from traditional
prejudices, are most marked. Although in the lower ranks of labour in
these pursuits there is a mass of women who, impelled by necessity,
work for low wages at mechanical tasks which offer no chance of
advancement, there is, nearer the top, a large group of women who
have been more fortunate in worldly position and education, and who
are spurred as much either by interest in their work or a desire to be
self-supporting, as by actual need to earn; who share, in other
words, the attitude that leads young men to strike out for themselves
even though their fathers may be able to support them. It is the
woman animated by these motives who is doing most for the
advancement of her sex; for it is she, and not the woman who works
through necessity, who really challenges the traditional prejudices
concerning the proper place of women. The woman labourer proves
the need of women to earn; the business woman or professional
woman who works because she wants to work, is establishing the
right of women to earn. More than this, as she makes her way into
one after another of the occupations that have been held to belong
to men by prescriptive right, she is establishing her claim, as a
human being, to choose her work from the whole wide field of human
activity. It is owing to the attitude towards life adopted by such
women, to their preference of independence and action over the
dependence and passivity in vogue not so many years ago, that it is
coming to be quite the expected thing that young women of the well-
to-do classes shall set out to earn their living, as young men do,
instead of stopping under the parental roof, with a watchful eye out
for men who will marry and support them. Need I remark that nothing
is more likely than this new attitude to bring about the substitution of
the “union by affection” for the union by interest? The woman who is
economically independent is under much less temptation to marry
from economic motives than the woman for whom marriage
represents the only prospect of security.
There is still a goodly number of prejudices and discriminations to be
overcome before women in business and the professions shall stand
on an equal footing with men as regards opportunity and
remuneration. Except where she is in business for herself, the
woman in these pursuits must generally be content with a lower rate
of pay than men; and if observation may be taken to count for
anything, she is expected to work somewhat harder for what she
gets—less loafing on the job is tolerated in her than in the male
employee. She is also more likely to find herself pocketed; that is to
say, in a position from which, because of her sex, there is no
possibility of further advance because the higher positions are
reserved for men. It is so universally the rule that women must
content themselves with reaching the lower rungs of the
occupational ladder, that the instances where they manage to attain
to places of responsibility and authority are still rare enough to be
found worthy of remark in the press. The same thing is true of
political positions; women are not yet represented in politics in
anything like a just proportion to their numbers, nor are they often
able to get themselves either elected or appointed to responsible
positions. None the less, considering the comparatively short time
since their emergence into the business world and the world of
public affairs, they are already making an excellent showing.
The world of business and the professions, like the world of industry,
has its occupations which are considered peculiarly suitable for
women. Strictly subordinate positions are thought to suit them very
well; hence there is quite an army of women stenographers,
bookkeepers, clerks and secretaries to be found in the business
section of any modern city. The personnel of the nursing profession
is made up almost exclusively of women; and the work of teaching in
our public schools, especially where it is most conspicuously
underpaid, is largely in their hands. There is, to be sure, an
impression current among members of school boards that marriage
disqualifies a woman for the teaching profession; but the single
woman is fairly secure in her position, possibly because it does not
pay well enough to be very attractive to men. Occupations
connected with the arts are also held, in this country, to be
particularly well adapted for women, although it must be noted that
the prejudice of male musicians is effective enough to exclude them
from the personnel of our important orchestras. It is in the creative
arts that their work is most welcomed; more especially in the field of
literature; and this may seem strange, in view of the fact that so
many eminent authorities believe that their sex renders them
incapable of attaining any significance in creative work. It is, I
apprehend, rather to the low opinion in which aesthetic pursuits are
held in this country than to a high opinion of female ability, that this
peculiar condition must be ascribed.
But if certain occupations are considered peculiarly appropriate for
women, there is none the less a great deal of prejudice against them
in others. The idea that woman’s place is the home has no more
disappeared from the world of business and the professions than it
has disappeared from the world of industry, even though it is the
business woman and the professional woman who are doing most to
dislodge it. And here it may be well to remark a fact that has already
been noted, with some pointed comment, by Ethel Snowden,
namely: that woman’s invasion of the gainful occupations appears to
be found unwomanly in proportion to the importance of the position
to which she aspires.
It is the married woman in business or in professional work, as it is in
industry, who suffers most from the surviving prejudices concerning
her sex. When there are economies to be effected through the
discharge of workers, the idea that the married woman is normally a
dependent comes immediately to the fore, and she is the first
employee to be discharged. For example, Equal Rights of 8 August,
1925, noted in an editorial that the city of St. Louis had begun a
campaign for economy by discharging twelve married women; that
there was a movement on in Germany to reduce governmental
expenses by a wholesale discharge of women employees; and that,
according to rumour, Mr. Coolidge’s campaign of economy was
being made to bear most heavily on married women. The comment
of Equal Rights on the action of the city of St. Louis is worth quoting:
St. Louis employed twenty-seven married women. It
investigated the economic condition of all these, retained nine,
discharged twelve, and was, at last report, still considering the
case of the other six. St. Louis did not investigate the economic
condition of the men employees, to see whether or not these
might continue to live if they were discharged. St. Louis did not
try to find out whether or not these men had fathers, brothers,
mothers, or wives who might support them while they were
looking for other jobs. St. Louis assumed that men have a right
to economic independence and the increased happiness and
opportunity that it brings. St. Louis assumed that women have
no such right.
FOOTNOTES:
[26] Ellis: Man and Woman. 5th ed. p. 14.