Stratification, Class, and Inequality: Understanding Societal Divisions

1. Stratification, Class, and Inequality Chapter 8

2. Stratification, Class, and Inequality • Which income group lost the greatest percentage of its wealth during the Great Recession of 2008? • (a) the upper class • (b) the middle class • (c) the lower class

3. Basic Concepts

4. Basic Concepts • Social Stratification • How individuals and social groups are divided in society and the inequalities of wealth and power that result • Structured Inequalities • Social inequalities that result from patterns in the social structure • There are three basic types of stratification systems—slavery, caste, and class systems.

5. Basic Concepts • Slavery • A form of social stratification in which some people are literally owned by others as their property • Total subjection of individual to the interests of their owners

6. Basic Concepts • Caste systems • A social system in which one’s social status is given for life • Social life is segregated • Intimate relationships are restricted to members of one’s own caste

7. Basic Concepts • Class • A large group of people who hold similar material prosperity and power • Life chances-Max Weber • A person’s opportunities for achieving economic prosperity based on history/background • mediated by class and race

8. Basic Concepts • Economic differences are the basis of class differences. These economic differences are explored by looking at four factors—income, wealth, educational attainment, and occupational status.

9. Basic Concepts • Income • Payment, usually derived from wages, salaries, or investments • Unequal distribution of income among class groups

10. Basic Concepts In 2011 the top 5 percent of households in the US received 22.3 percent of total income, the highest 20 percent obtained 51.1 percent and the bottom 20 percent received only 3.2 percent. The mean household earnings of the bottom 20 percent of people was about the same in 1974 as in 2010. In that same time period the richest fifth saw their incomes grow by 50 percent. The richest 5 percent of households grew 65 percent.

11. Basic Concepts • Wealth • The assets that an individual owns, such as cash, savings, and checking accounts and investments in stocks, bonds, and real estate • Unequal distribution across class groups • Racial divisions persist • Top 10% median worth $1,194,300 (2010) $3,300,000 (2013) • Lowest had $6,200 (2010) $6,400 (2013)

12. Basic Concepts • Education • College education predicts occupation, income, and wealth later in life • Racial differences persist • Occupation • Affected by education • Affects income and wealth

13. Basic Concepts

14. Basic Concepts • Class and Lifestyle • Economic capital • Cultural capital • The French sociologist Pierre Bourdieu saw social class groups as identifiable according to their levels of cultural and economic capital. Increasingly, individuals distinguish themselves not according to economic or occupational factors but on the basis of cultural tastes and leisure pursuits.

15. Basic Concepts Occupations of the 1%

16. Basic Concepts

17. Theories of Stratification in Modern Societies

18. Theories of Stratification in Modern Societies • Karl Marx • Class is based on peoples relationship to the means of production • How production of material goods is carried on in a society, including technology and social relations between producers

19. Theories of Stratification in Modern Societies • Karl Marx • Capitalists • People who own companies, land, or stocks and use them to generate economic returns • Surplus profit • Working class • People who sell their labor to capitalists and generate surplus value

20. Theories of Stratification in Modern Societies • Max Weber • Besides relationships to the means of production, class divisions depend on skills, credentials, and social status • Pariah groups prevented from opportunities • Groups who suffer from negative status discrimination

21. Theories of Stratification in Modern Societies • Kingsley Davis and Wilbert Moore • Stratification is functional • Important positions in society require special skills and offer greater rewards • Most qualified people fill the most important roles and receive the greatest benefit but…

22. Evidence shows that opportunities to develop skills and acquire credentials differ depending on one’s gender, class, race, and ethnicity. • The theory also fails to explain why some jobs are highly paid even though they are not socially necessary.

23. Theories of Stratification in Modern Societies • Erik Olin Wright • Class divisions based on: • Control over investments or monetary capital • Control over the physical means of production • Control over labor power • Contradictory class locations(white collar and professional employees influence some aspects of production but lack control over others)

24. Theories of Stratification in Modern Societies • Annette Laureau • Different parenting styles on the basis of social class position • Concerted cultivation (middle class, teamwork, time management, assertiveness) vs. natural growth (working class, free play, defer to authority, unstructured time)

25. Research on Social Stratification Today

26. Research on Social Stratification Today • The upper class in the United States • Earns more than $180,000/yr (5%) • Broadly composed of the more affluent members of society, especially those who have inherited wealth, own businesses, and hold large numbers of stocks (shares)

27. Research on Social Stratification Today • The middle class in the United States • Upper Middle Class $100,000-$180,000 • Lower Middle Class $38,000-$100,000 • Composed broadly of those working in white-collar and lower managerial occupations • Occupational prestige, income, and wealth split middle class into upper middle and lower middle classes

28. Research on Social Stratification Today • The working class in the United States • Average income $20,000-$38,000/yr • Broadly composed of people working in blue-collar or manual labor occupations • Globalization/job loss

29. Research on Social Stratification Today • The lower class in the United States • Composed of people who work part-time or not at all and whose annual household income is typically below $20,000

30. Research on Social Stratification Today • The “under class” in the United States • Individuals situated at the bottom of the class system, often composed of people in the highest-poverty neighborhoods of the inner city • “New urban poor”

31. Research on Social Stratification Today • Social mobility • Intergenerational mobility-social movement across generations • Intragenerational mobility-how far an individual moves up or down the socioeconomic scale during his or her working life • Structural mobility-economy creates higher paying jobs, increasing prosperity. • Exchange mobility-talented move up, less talented move down

32. Research on Social Stratification Today • Upward intergenerational mobility • Higher education • Since 2008 weak labor market doesn’t guarantee a job to new graduates

33. Research on Social Stratification Today Levels of poverty • Absolute poverty • The minimal requirements necessary to sustain a healthy existence • Relative poverty • Poverty defined according to the living standards of the majority in any given society

34. Research on Social Stratification Today • Measuring poverty • The poverty line • An official government measure that defines those living in poverty in the United States • In 2015, $24,250 annually was the poverty income for a family of four

35. Research on Social Stratification Today

36. Research on Social Stratification Today • Working poor • People who work, but whose earnings are not enough to lift them above the poverty line

37. Research on Social Stratification Today • Working poor • In 2011, minimum wage was $7.25/hour for full-time annual income of $14,500 • Only 5 percent of low-income families that work full-time, full-year qualify for welfare

38. Research on Social Stratification Today • The feminization of poverty • An increase in the proportion of the poor who are female • Growing numbers of women who are single mothers, divorced, or separated • Children in poverty • Related to economic conditions and government spending

39. Research on Social Stratification Today • Homeless • People who have no place to sleep and either stay in free shelters or sleep in public places not meant for habitation • Young single men of working age • Families (often single women) with children

40. Unanswered Questions

41. Unanswered Questions • Why are Poverty Rates Rising in the United States? • Culture of poverty • Poor are socialized to learn values, beliefs, and lifestyles that are incompatible with upward mobility in the class system • Dependency culture • Culture of individuals who rely on government welfare subsidies rather than working for pay

42. Unanswered Questions • Why are Poverty Rates Rising in the United States? • Social structure • Inequities are built into the system that affect opportunities available to people depending on their gender, race, ethnicity, education, or social class

43. Unanswered Questions • What Can Be Done to Combat Poverty? • Welfare systems • Provide basic benefits like food, housing, and medical care to the poor • Critics argue that welfare recipients become dependent on a system that is supposed to make them independent

44. Unanswered Questions • What Can Be Done to Combat Poverty? • Welfare reform • Time limits • Work-training programs

45. Unanswered Questions

46. Unanswered Questions • How Will These Economic Patterns Affect Your Life? • Decreasing effect of education on mobility chances • Increasing income inequality • Global economic competition