9.1: Social Class
9.1.1: Social Class
Society is stratified into social classes on the basis of wealth, income, educational attainment, and occupation.
Learning Objective
Discuss the discrepancies in the formation of social classes, as identified by various sociologists
Key Points
- There are competing models for thinking about social classes in the U.S. — most Americans believe in a three tier structure that includes the upper, middle, and lower classes, but popular variations delineate an upper-middle class and a working class.
- Individuals tend to form relationships with others in their own class, and to consequently acculturate to, or learn the values of behaviors of, their own class. This process strengthens distinctions between classes as each group establishes a unique class culture.
- Due to class mobility, in some cases individuals may also acculturate to the culture of another class when ascending or descending in the social order.
Key Terms
- acculturate
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To acquire the culture (including systems of value and belief) of the society that one inhabits, starting at birth.
- social network
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The web of a person’s social, family, and business contacts, who provide material and social resources and opportunities.
- Class Culture
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A system of beliefs, values, and behaviors that is particular to a socioeconomic group.
Example
- Neighborhood composition is one way in which individuals learn the culture of their own class. Because real estate values are clustered (neighboring homes are likely to have similar values), neighborhoods are stratified by socioeconomic status. One’s neighborhood often determines where individuals go to school, which recreational facilities they use, and where they attend religious services (for example), so neighborhood composition can teach class culture and reinforce distinctions between classes.
Most social scientists agree that society is stratified into a hierarchical arrangement of social classes. Social classes are groupings of individuals in a hierarchy, usually based on wealth, educational attainment, occupation, income, and membership in a subculture or social network. Social class in the United States is a controversial issue, having many competing definitions, models, and even disagreements over its very existence. Many Americans believe in a simple three-class model that includes upper class, the middle class, and the lower class or working class. More complex models that have been proposed by social scientists describe as many as a dozen class levels.
United States Social Classes
While social scientists offer competing models of class structure, most agree that society is stratified by occupation, income, and educational attainment.
Meanwhile, some scholars deny the very existence of discrete social classes in American society. In spite of debate, most social scientists agree that in the U.S. there is a social class structure in which people are hierarchically ranked. Elsewhere in the world, one’s social class may depend more upon race/ethnicity, position at birth, or religious affiliation. For example, in Mexico, society is stratified into classes determined by European or indigenous lineage as well as wealth. In the U.K. class position depends somewhat on family lineage, with members of the nobility traditionally belonging to the aristocracy.
Class Culture
Social class is sometimes presented as a description of how members of society have sorted themselves along a continuum of positions varying in importance, influence, prestige, and compensation. Thought of this way, once individuals identify as being within a class group they begin to adhere to the behaviors they expect of that class. Thus, a person who considers him or herself to be upper class will dress differently from a person who considers him or herself to be working class — one may wear a business suit on a daily basis, while the other wears jeans, for example. By adhering to class expectations, individuals create sharper distinctions between classes than may otherwise exist.
Sociologists studying class distinctions since the 1970s have found that social classes each have unique cultural traits. The phenomenon, referred to as class culture, has been shown to have a strong influence on the mundane lives of people, affecting everything from the manner in which they raise their children, to how they initiate and maintain romantic relationships, to the color in which they paint their houses. The overall tendency of individuals to associate mostly with those of equal standing as themselves has strengthened class differences. Because individuals’ social networks tend to be within their own class, they acculturate to, or learn the values and behaviors of, their own class. Due to class mobility, in some cases individuals may also acculturate to the culture of another class when ascending or descending in the social order. Nonetheless, the impact of class culture on delineating a social hierarchy is significant.
9.1.2: Property
Property is the total of one’s possessions and, therefore, may be a better measure of social class than income.
Learning Objective
Describe the various forms of property – private, public and collective – and their functions
Key Points
- Property goes beyond income as a measure of social class as it reflects the accumulated wealth (e.g., homes, stocks, bonds, savings) in addition to one’s earning potential.
- Private property is distinguishable from public property and collective property, which refers to assets owned by a state, community, or government rather than by individuals or a business entity.
- Economic liberals consider private property to be essential for the construction of a prosperous society.
- Socialists view private property relations as limiting the potential of productive forces in the economy.
- Libertarians believe that private property rights are a requisite for rational and efficient economic calculation.
Key Terms
- economic liberals
-
Economic liberalism is the ideological belief in organizing the economy on individualist lines, such that the greatest possible number of economic decisions are made by private individuals and not by collective institutions.
- libertarian
-
A believer in a political doctrine that emphasizes individual liberty and a lack of governmental regulation and oversight both in matters of the economy (‘free market’) and in personal behavior.
Examples
- An example of private property stimulating economic growth is when a homeowner makes home improvements to increase the value of their home, when in a similar situation a tenant in a government-owned building would not invest money in home improvements.
- An example of private property stimulating economic growth is when a homeowner makes home improvements to increase the value of their home, when in a similar situation a tenant in a government owned building would not invest money in home improvements.
- Socialist policies benefiting national economic growth may include the protection of natural resources to secure longterm access to land, oil, or fresh water, as opposed to private corporation’s solely short term interest in exploiting natural resources for immediate profit.
Property refers to the sum total of one’s possessions, as well as their regular income. It goes beyond income as a measure of social class, as it reflects wealth accumulated (e.g., homes, stocks, bonds, savings) in addition to one’s earning potential. Property is a better overall measure of social class than income, as many individuals who are considered wealthy actually have very small income, and those with less property tend to have less power and prestige.
Income
Income is one form of property, and contributes significantly the measures of wealth. In the United States, the top 1% of the population earns a disproportionate amount of national income, coinciding with their position at the top of the social class hierarchy.
Private property is the ownership, control, employment, ability to dispose of, and bequeath land, capital, and other forms of property by persons and privately owned firms. Private property is distinguishable from public property and collective property, which refers to assets owned by a state, community, or government rather than by individuals or a business entity. The concept of property is not equivalent to that of possession. Property and ownership refer to a socially constructed circumstance conferred upon individuals or collective entities by the state, whereas possession is a physical phenomenon.
Economic liberals consider private property to be essential for the construction of a prosperous society. They believe private ownership of land ensures the land will be put to productive use and its value protected by the landowner. If the owners must pay property taxes, this forces the owners to maintain a productive output from the land to keep taxes current.
On the other hand, socialists view private property relations as limiting the potential of productive forces in the economy. They believe private property becomes useless when it concentrates into centralized, socialized institutions based on private appropriation of revenue until the role of the capitalist becomes redundant.
Lastly, libertarians believe that private property rights are a requisite for rational economic calculation, and that without clearly defined property rights, the prices of goods and services cannot be determined in an “efficient” manner, making the most efficient economic calculation impossible.
9.1.3: Power
Power refers to someone’s ability to get others to do his or her will, regardless of whether or not they want to.
Learning Objective
Compare the positives and negatives associated with the use of power and how power operates in society
Key Points
- Legitimate power, power given to individuals willingly by others, is called “authority”.
- Illegitimate power, power taken by force or the threat of force, is called “coercion”.
- Coercion is power taken by force or the threat of force.
- Influence, in contrast to coercion, refers to the means by which power is used.
- Because power operates both relationally and reciprocally, sociologists speak of the balance of power between parties to a relationship. All parties to all relationships have some power.
Key Terms
- coercion
-
Actual or threatened force for the purpose of compelling action by another person; the act of coercing.
- influence
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An action exerted by a person or thing with such power on another to cause change.
Example
- The authority exerted by political leaders is an example of legitimate power. State- level politicians in the United States are often not wealthy, but they have the authority to enact their wills through government policy.
Power refers to someone’s ability to get others to do his or her will, regardless of whether or not they want to. It is also a measurement of an entity’s ability to control its environment, including the behavior of other entities. Legitimate power, power given to individuals willingly by others, is called “authority;” illegitimate power, power taken by force or the threat of force, is called “coercion. ” In the corporate environment, power is often expressed as upward or downward. With downward power, a company’s superior influences subordinates. When a company exerts upward power, it is the subordinates who influence the decisions of the leader. Often, the study of power in a society is referred to as “politics. “
Power can be seen as evil or unjust, but the exercise of power is accepted as endemic to humans as social beings. The use of power need not involve coercion (force or the threat of force). At one extreme, it more closely resembles what everyday English-speakers call “influence,” or the means by which power is used. Although power can be seen as various forms of constraint on human action, it can also be understood as that which makes action possible, although in a limited scope.
Because power operates both relationally and reciprocally, sociologists speak of the balance of power between parties to a relationship. All parties to all relationships have some power. The sociological examination of power concerns itself with discovering and describing the relative strengths–equal or unequal, stable, or subject to periodic change. Sociologists usually analyze relationships in which the parties have relatively equal or nearly equal power in terms of constraint rather than of power.
9.1.4: Prestige
Prestige refers to the reputation or esteem associated with one’s position in society, which is closely tied to their social class.
Learning Objective
Compare the two types of prestige – achieved and ascribed, and how prestige is related to power, property and social mobility
Key Points
- Prestige used to be associated with one’s family name, but for most people in developed countries, prestige is now generally tied to one’s occupation.
- Highly skilled occupations tend to have more prestige associated with them than low skill occupations.
- Prestige is often related to the other two indicators of social class – property and power.
- Prestige is an important element in social mobility.
Key Terms
- social class
-
A group of people in a stratified hierarchy, based on social power, wealth, educational attainment, and other criteria.
- occupation
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A regular activity performed in exchange for payment, including jobs and professions.
- prestige
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A measure of how good the reputation of something or someone is, or how favorably something or someone is regarded.
Examples
- A college professor has high occupational prestige, largely due to the high level of education associated with the job, even though they often do not have notably high incomes. Funeral directors have low occupational prestige, despite high incomes.
- Funeral directors are examples of people who have low occupational prestige despite high incomes.
Prestige refers to the reputation or esteem associated with one’s position in society. A person can earn prestige by his or her own achievements, which is known as achieved status, or they can be placed in the stratification system by their inherited position, which is called ascribed status. For example, prestige used to be associated with one’s family name (ascribed status), but for most people in developed countries, prestige is now generally tied to one’s occupation (achieved status). Occupations like physicians or lawyers tend to have more prestige associated with them than occupations like bartender or janitor. An individual’s prestige is closely tied to their social class – the higher the prestige of an individual (through their occupation or, sometimes, their family name), the higher their social class.
Prestige is often related to the other two indicators of social class – property and power. A Supreme Court justice, for example, is usually wealthy, enjoys a great deal of prestige, and exercises significant power. In some cases, however, a person ranks differently on these indicators, such as funeral directors. Their prestige is fairly low, but most have higher incomes than college professors, who are among the most educated people in America and have high prestige.
Prestige is a strong element in social mobility. On the one hand, choosing certain occupations or attending certain schools can influence a person’s level of prestige. While these opportunities are not equally available to everyone, one’s choices can, at least to a limited extent, increase or decrease one’s prestige, and lead to social mobility. On the other hand, certain elements of prestige are fixed; family name, place of birth, parents’ occupations, etc., are unchangeable parts of prestige that cause social stratification.
Oxford University Ceremony
The job of professor is an example of an occupation that has high prestige even though many professors do not earn incomes in the top economic bracket.
9.1.5: Status Inconsistency
Status inconsistency occurs when an individual’s social positions are varied and these variations influence his or her overall social status.
Learning Objective
Discuss the concept of status inconsistency and how this phenomena can lead to frustration for people
Key Points
- Introduced by the sociologist Gerhard Lenski in the 1950s, status inconsistency theories predict that people whose status is inconsistent will be more frustrated and dissatisfied than people with consistent statuses.
- Sociologists investigate issues of status inconsistency in order to better understand status systems and stratification.
- Max Weber articulated three major dimensions of stratification in his discussion of class, power, and status.
Key Terms
- sociologist
-
A social scientist focused on the study of society, human social interaction, and the rules and processes that bind and separate people not only as individuals, but as members of associations, groups and institutions.
- status inconsistency
-
A situation in which an individual’s varied social positions can have both positive and negative influences on his or her social status.
- Max Weber
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(1864–1920) A German sociologist, philosopher, and political economist who profoundly influenced social theory, social research, and the discipline of sociology itself.
Examples
- A schoolteacher is an example of someone who experiences status inconsistency; he is granted respect by most members of society, but he do not earn a top income.
- Staus consistency occurs when somebody has similar levels of property, prestige, and class — for example, a Supreme Court justice is held in high esteem, is able to enact their will, and is likely to have accumulated wealth.
Status inconsistency is a situation where an individual’s social positions have both positive and negative influences on his or her social status. Introduced by the sociologist Gerhard Lenski in the 1950s, status inconsistency theories predict that people whose statuses are inconsistent will be more frustrated and dissatisfied than people with consistent statuses. For example, a teacher may have a positive societal image (respect, prestige, etc.), which increases her status but she may earn little money, which simultaneously decreases her status.
All societies have some basis for social stratification, and industrial societies are characterized by multiple dimensions to which some vertical hierarchy may be imputed. The notion of status inconsistency is simple: It is defined as occupying different vertical positions in two or more hierarchies. Sociologists investigate issues of status inconsistency in order to better understand status systems and stratification, and because some sociologists believe that positions of status inconsistency might have strong effects on people’s behavior.
Max Weber articulated three major dimensions of stratification in his discussion of class, power, and status. This multifaceted framework provides the background concepts for discussing status inconsistency. Status inconsistency theories predict that people whose status is inconsistent, or higher on one dimension than one another, will be more frustrated and dissatisfied than people with consistent statuses.
Gerhard Lenski originally predicted that people suffering from status inconsistency would favor political actions and parties directed against higher status groups. According to Lenski, the concept can be used to further explain why status groups made up of wealthy minorities who would be presumed conservative tend to be liberal instead. Since Lenski coined the term, status inconsistency has remained controversial with limited empirical verification.
School Teacher
Teachers are often held in high esteem and exert power over students and in local policy, but they tend to have low incomes and little accumulated wealth.
9.2: Social Class in the U.S.
9.2.1: Social Class in the U.S.
Most social scientists agree that American society is stratified into social classes, based on wealth, education, and occupation.
Learning Objective
Compare and contrast two different social class models
Key Points
- There are competing models for dividing society into discrete classes, but most are based upon a basic three-tiered model that includes an upper class, middle class, and lower class.
- Each social class is thought to share particular cultural traits, such as manner of dress and speech, that reinforce divisions between different classes.
- The “American Dream” holds that U.S. society is meritocratic and status is based on individual achievement, but many social scientists tend to support the idea that inequality is persistent in America and often results from inherited advantages or disadvantages.
Key Terms
- social network
-
The web of a person’s social, family, and business contacts, who provide material and social resources and opportunities.
- acculturate
-
To acquire the culture (including systems of value and belief) of the society that one inhabits, starting at birth.
- The American Dream
-
The belief that with hard work, courage, and determination, anyone can prosper and achieve success.
Examples
- In presidential elections, campaigns often draw on social class distinctions to claim that their opponent is too elite to understand the needs of the majority of Americans. For example, in 2004, the Republican campaign aired commercials of Democratic candidate John Kerry windsurfing to paint him as upper class.
- When an elite politician enters a working class social scene, their apparent unfamiliarity can be seen as evidence of disparate class cultures. Political commentators reached this conclusion in the 2012 Republican presidential primaries when candidate Mitt Romney remarked to an audience of auto manufacturers that his wife owned multiple Cadillacs.
- Whether wealth is distributed among discrete tiers of society or along a continuum, the disparity between America’s poorest and wealthiest individuals is apparent: the top 1% of Americans hold 40% of the country’s wealth.
In the United States, most social scientists agree that society is stratified into a hierarchical arrangement of social classes. Social classes are groupings of individuals in a hierarchy, usually based on wealth, educational attainment, occupation, income, and membership in a subculture or social network. Social class in the United States is a controversial topic; there have been many competing definitions, models, and even disagreements over its very existence. Many Americans believe in a simple three-class model that includes the rich or upper class, the middle class, and the poor or working class. More complex models that have been proposed by social scientists describe as many as a dozen class levels. Meanwhile, some scholars deny the very existence of discrete social classes in American society. In spite of this debate, most social scientists agree that in the United States, there is a social class structure in which people are hierarchically ranked.
Models of U.S. Social Classes
One social class model proposed by sociologists posits that there are six social classes in America. In this model, the upper class in America (3% of the population) is divided into the upper-upper class (1% of the U.S. population), earning hundreds of millions to billions of dollars in income per year, while the lower-upper class (2%) earns millions in annual income. The middle class (40%) is divided into the upper-middle class (14%, earning $76,000 or more per year) and the lower-middle class (26%, earning $46,000 to $75,000 annually). The working class (30%) earns $19,000 to $45,000. The lower class (27%) is divided into the working poor (13%, earning $9000 to $18,000) and the underclass (14%, earning under $9000). This model has gained traction as a tool for thinking about social classes in America, but it notably does not fully account for variations in status based on non-economic factors, such as education and occupational prestige. This critique is somewhat mitigated by the fact that income is often closely aligned with other indicators of status: Those with high incomes likely have substantial education, high-status occupations, and powerful social networks.
Another model for thinking about social class in the United States attributes the following general characteristics to each tier: The upper class has vast accumulated wealth and significant control over corporations and political institutions, and their privilege is usually inherited; the corporate elite is a class of high-salaried stockholders, such as CEOs, who do not necessarily have inherited privilege but have achieved high status through their careers; the upper middle class consists of highly educated salaried professionals whose occupations are held in high esteem, such as lawyers, engineers, and professors; the middle class is the most vaguely defined and largest social class, and is generally thought to include people in mid-level managerial positions or relatively low status professional positions, such as high school teachers and small business owners; the working class generally refers to those without college degrees who do unskilled service work, such as being a sales clerk or housecleaner, and it includes most people whose incomes fall below the poverty line.
U.S. Poverty Rate 1959-2009
This chart depicts the number of people living in poverty during each year from 1959-2003. The poverty rate corresponds to what proportion of Americans live in the lowest economic strata of the hierarchical class system.
Definition of Middle Class
Since the middle class is the largest yet most vaguely defined class, it is important to think about how people come to identify themselves as “middle class.” Some people define middle class by income, whereas others are more concerned with values and job description. For example, one may define themselves as middle class if they needed to go to college to obtain their job, despite having a lower income than a blue-collar worker. Another person may believe that since he makes $100,000 a year (regardless of his job status), he is middle class. Most people define middle class in terms of income and values (such as education and religion).
Class Culture
Sociologists studying class distinctions since the 1970s have found that social classes each have unique cultural traits. The phenomenon, referred to as class culture, has been shown to have a strong influence on the mundane lives of people. Class culture is thought to affect everything from the manner in which people raise their children, to how they initiate and maintain romantic relationships, to the color in which they paint their houses. The overall tendency of individuals to associate mostly with those of equal standing as themselves has strengthened class differences. Because individuals’ social networks tend to be within their own class, they acculturate to, or learn the values and behaviors of, their own class. Due to class mobility, in some cases, individuals may also acculturate to the culture of another class when ascending or descending in the social order. Nonetheless, the impact of class culture on the social hierarchy is significant.
Debates over the Existence and Significance of U.S. Social Classes
According to the logic of the American Dream, American society is meritocratic and class is achievement based. In other words, one’s membership in a particular social class is based on their educational and career accomplishments, and class distinctions, therefore, are not rigid. Many sociologists dispute the existence of such class mobility and point to the ways in which social class is inherited.
Social theorists who dispute the existence of social classes in the United States tend to argue that society is stratified along a continuous gradation, rather than into delineated categories. In other words, there is inequality in America, with some people attaining higher status and higher standards of living than others. There is no clear place to draw the line separating one status group from the next.
9.2.2: Income
Individual and household income remains one of the most prominent indicators of class status within the United States.
Learning Objective
Discuss the relationship between income and class status
Key Points
- Personal income is an individual’s total earnings from wages, investment earnings, and other sources, and the mostly widely cited data on personal income comes from the U.S. Census Bureau’s population surveys.
- Though individuals in a household may hold low prestige or low earning jobs, having multiple incomes can allow for upward class mobility as a household’s wealth increases.
- According to the U.S. Census, men tend to have higher income than women, while Asians and whites earned more than African Americans and Hispanics.
Key Terms
- U.S. Census Bureau
-
The government agency that is responsible for the United States Census, which gathers national demographic and economic data.
- income
-
money one earns by working, or by capitalising off other people’s work
- Bureau of Economic Analysis
-
The Bureau of Economic Analysis (BEA) is an agency in the United States Department of Commerce that measures important economic statistics, including the gross domestic product of the United States.
- personal income
-
All of an individual’s monetary earnings, including salary, investment gains, inheritance, and any other gains.
Examples
- U.S. Census Bureau data on household incomes is used to inform welfare policy, as benefits are distributed based on expectations about what income is needed to access basic resources like food and healthcare.
- Salary alone only measures the income from a person’s occupation, while total personal income accounts for investments, inheritance, real estate gains, and other sources of wealth. Many people who have vast accumulated wealth have virtually non-existent salaries, so total personal income is a better indicator of economic status.
- On an individual basis, a person would need to have a high status, high paying occupation to belong to the upper middle class — occupations that would likely be categorized within the group include those of physician or university professor. However, in a dual-income household the combined income of both earners, even if they hold relatively low status jobs, can put the household in the upper middle class income bracket.
Income in the United States is most commonly measured by U.S. Census Bureau in terms of either household or individual income and remains one of the most prominent indicators of class status. Income is not one of its causes. In other words, income does not determine the status of an individual or household but rather reflects that status. Some say that income and prestige are the incentives provided by society in order to fill needed positions with the most qualified and motivated personnel possible.
Personal income is an individual’s total earnings from wages, investment interest, and other sources. In the United States, the most widely cited personal income statistics are the Bureau of Economic Analysis’s personal income and the Census Bureau’s per capita money income. The Census Bureau also produces alternative estimates of income and poverty based on broadened definitions of income that include many components that are not included in money income. Estimates are available by demographic characteristics of householders and by the composition of households. According to the US Census, men tend to have higher income than women, while Asians and whites earned more than African Americans and Hispanics.
The combination of two or more incomes allows for households to increase their income substantially without moving higher on the occupational ladder or attaining higher educational degrees. Thus, it is important to remember that the favorable economic position of households in the top two quintiles is in some cases, the result of combined income, rather than the high status of a single worker.
Working class
A monument to the working and supporting classes along Market Street in the heart of San Francisco’s Financial District, home to tens-of-thousands of professional upper class and managerial middle class workers.
9.2.3: Wealth
Wealth is commonly measured in terms of net worth, which is the sum of all assets, including home equity, minus all liabilities.
Learning Objective
Define “wealth” and explain how it differs from “income”
Key Points
- The wealth—more specifically, the median net worth—of households in the United States varies with relation to race, education, geographic location, and gender.
- While income is often seen as a type of wealth in colloquial language use, wealth and income are different measures of economic prosperity.
- Assets are known as the raw materials of wealth, and they consist primarily of stocks and other financial and non-financial property, particularly homeownership, that allows individuals to increase their wealth.
- Home ownership is one of the main sources of wealth among families in the United States, but can be inaccessible to low income households due to high interest rates.
Key Terms
- net worth
-
The total assets minus total liabilities of an individual or a company.
- interest rate
-
The percentage of an amount of money charged for its use per some period of time (often a year).
- Assets
-
Any property or object of value that one possesses, usually considered as applicable to the payment of one’s debts.
Examples
- Many wealthy individuals, particularly those with inherited wealth or substantial stock or real estate holdings, actually have low incomes.
- One way that many wealthy individuals increase their wealth is by investing in the stock market. To invest, individuals need to have sufficient assets to buy stock shares.
- When a person decides to buy a house, they take out a mortgage from the bank at an interest rate that may or may not be fixed to stay the same over time. When they can no longer pay back the loan at the agreed upon interest rate, their home is foreclosed and the bank that gave them the mortgage takes ownership of it. Many low to middle-income Americans have had their homes foreclosed upon during the recent recession.
Wealth in the United States is commonly measured in terms of net worth, which is the sum of all assets, including home equity, minus all liabilities. The wealth—more specifically, the median net worth—of households in the United States varies with relation to race, education, geographic location, and gender. While income is often seen as a type of wealth in colloquial language use, wealth and income are two substantially different measures of economic prosperity. While there may be a high correlation between income and wealth, the relationship cannot be described as causal.
Assets are known as the raw materials of wealth, and they consist primarily of stocks and other financial and non-financial property, particularly home ownership, that allows individuals to increase their wealth. Home ownership is one of the main sources of wealth among families in the United States. However, there are racial differences in the acquisition of housing, and this inequality reproduces stratification in wealth across race. For white families, home ownership is worth, on average, $60,000 more than it is worth for black families. A lower proportion of people of color than white people have access to the financial resources needed to purchase a home with the intention of letting its value appreciate over time to increase personal wealth. In many communities with large minority populations, high interest rates can cause roadblocks to home ownership.
Data on personal wealth in the United States shows that the inequality between the nation’s richest and poorest citizens is vast. For example, just 400 Americans have the same wealth as half of all Americans combined. In 2007 more than 37 million U.S. citizens, or 12.5% of the population, were classified as poor by the Census Bureau. In 2007 the richest 1% of the American population owned 34.6% of the country’s total wealth, and the next 19% owned 50.5%. Thus, the top 20% of Americans owned 85% of the country’s wealth and the bottom 80% of the population owned 15%.
Mean Family Net Worth by Decile
This graph shows changes in the average net worth of families in each decile of the U.S. income hierarchy. In recent years, the average net worth of high-income families has grown significantly more than that of middle and lower-income families.
9.2.4: Education
In the U.S., educational attainment is strongly correlated to income and occupation, and therefore to social class.
Learning Objective
Describe how higher educational attainment relates to social class
Key Points
- American society values post-secondary education very highly; it is one of the main determinants of social class, along with income, wealth, and occupation.
- Tertiary education (or “higher education”) is required for many middle and upper class professions.
- Educational attainment is strongly related to income in the United States.
Key Terms
- low-interest loans
-
Money lent with only a small percentage of interest accruing as a charge, often made available to students.
- scholarship
-
Monetary aid given to a student to assist them in paying for an education.
- tertiary education
-
Higher education, including college education and vocational programs beyond high school.
Examples
- In many cases, young university professors earn the same salary as young elementary or high school teachers. Still, professors are generally thought to be upper-middle class, while teachers are usually considered middle class. This disparity can be attributed to the greater educational attainment of professors, who hold doctorate degrees.
- Common middle and upper class professions include those of lawyer, doctor, and CEO. To be a lawyer, one must have a law degree (JD); to be a doctor, one must have a medical degree (MD); to be a CEO, one usually has a business degree (MBA). Thus, education beyond college is required for many middle to upper class professions.
- Among people with professional degrees (such as a law or medical degree), the median household income is $100,000. For high school graduates, the median household income is $36,835. The more well educated a person is, the more highly skilled labor they tend to do, the more income they tend to earn.
The educational attainment of the U.S. population parallels that of many other industrialized countries, with the vast majority of the population having completed secondary education and a rising number of college graduates outnumbering high school dropouts. As a whole, the U.S. population is spending more years in formal educational programs. American society highly values post-secondary education, or education beyond high school; it is one of the main determinants of class and status in the U.S. In fact, the attainment of post-secondary and graduate degrees is often considered the most important feature distinguishing middle and upper middle class people from lower or working class people. In this regard, universities can be regarded as the gatekeepers of the professional middle class.
Many middle-class professions require post-secondary degrees, which are classified as tertiary education (or “higher education”). Tertiary education is rarely free, but the costs do vary widely; tuition at elite private colleges often exceeds $200,000 for a four-year program while public colleges and universities typically charge much less (for state residents). Many public institutions, such as the University of California system, rival elite private schools in reputation and quality. Many colleges and universities offer scholarships to make higher education more affordable. Government and private lenders also offer low-interest loans. Still, by all accounts, the average cost of education is increasing.
In the U.S., income is strongly related to educational attainment. In 2005, the majority of people with doctorate and professional degrees were counted among the nation’s top 15% of income earners. The income of people with bachelor’s degrees was above the national median, while the median income of people with some college education remained near the national median. According to U.S. Census Bureau, 9% of persons aged 25 or older had a graduate degree, 27.9% had a bachelor’s degree or more, and 53% had attended at least some college. According to the same census, 85% of the U.S. population had graduated from high school. These numbers indicate that the average American does not have a college degree or higher. Having a degree is strongly linked to occupation, and therefore income; degree holders work in more highly skilled professions and earn more on average. Thus, having a bachelor’s or graduate degree is a strong indicator of social class.
Income and educational levels differ by race, age, household configuration, and geography. Although the incomes of both men and women are associated with higher educational attainment (higher incomes for higher educational attainment), there remains an income gap between races and genders at each educational level.
Education Pays
This graphic, released by the US Department of Labor, shows the correlation between higher education, employment status, and income. The more education a person attains, the more likely they are to be employed in high paying occupations.
9.2.5: Occupation
In the United States, occupation and occupational prestige are primary indicators of social class, along with income, wealth, and education.
Learning Objective
Explain how occupation may affect a person’s social class
Key Points
- High status professional occupations, such as those of a doctor, lawyer, or CEO, require high educational attainment and are associated with the upper-middle and upper classes.
- Occupation often corresponds with income and educational attainment, which combined determine a person’s social class. However, occupations with high occupational prestige can increase one’s social class without a corresponding increase in indicators, such as income.
- To enter the professions, a person usually must hold a professional degree. Examples of professional degrees include JDs for law, MDs for medicine, and MBAs for business.
Key Terms
- profession
-
An occupation, trade, craft, or activity in which one has a professed expertise in a particular area, especially one requiring a high level of skill or training.
- educational attainment
-
Educational attainment is a term commonly used by statisticians to refer to the highest degree of education an individual has completed.
- occupational prestige
-
The rating of a job based on the social esteem or respect granted to an occupation.
Examples
- Occupations that are frequently held by members of the upper class tend to be well-compensated and require higher education: lawyers frequently make six-figure salaries and must hold JDs, for example. Sometimes, however, the prestige of an occupation overrides income in determining someone’s class membership: professors are often considered upper class though they often have relatively low incomes, while funeral directors are often considered middle class though they have relatively high incomes.
- The upper-middle class is sometimes referred to as the “professional class,” pointing to the dominance of highly compensated, highly educated professionals in this social tier.
- Occupations that are frequently held by members of the upper class tend to be well-compensated and require higher education: lawyers frequently make six-figure salaries and must hold JDs, for example. Sometimes, however, the prestige of an occupation overrides income in determining someone’s class membership: professors are often considered upper class though they often have relatively low incomes, while funeral directors are often considered middle class though they have relatively high incomes.
In the United States, occupation is a primary indicator of social class, along with income, wealth, and education. Occupation is closely linked to Americans’ identities, and is a salient marker of status. The importance of occupation in part results from the substantial amount of time that American’s devote to their careers. The average work week in the United States for those employed full time is 42.9 hours long, and 30% of the population works more than 40 hours per week.
High educational attainment is generally a pre-requisite for entering high status professional occupations. Professional occupations, sometimes called “the professions” or “white collar jobs,” include highly skilled positions, such as that of a lawyer, physician, and CEO. Having a professional occupation is associated with being a member of the upper-middle or upper class. To enter the professions, a person usually must hold a professional degree. Examples of professional degrees include JDs for law, MDs for medicine, and MBAs for business. Because the professions are considered highly skilled, require high educational attainment, and provide high incomes, they are associated with high social status.
Sociologists often talk about the status associated with various occupations in terms of occupational prestige. Occupational prestige refers to the esteem in which society holds a particular occupation. Occupational prestige is one way in which occupation may affect a person’s social class independent of income and educational attainment. While high status occupations often reap high incomes and require significant education, in some cases these three variables are not linked. For example, being a university professor has high status and requires high educational attainment, but does not always result in high income. Its status depends upon the high esteem in which professors are held. In large part because of high occupational prestige, university professors are generally considered members of the upper-middle class. Conversely, funeral directors generally have high incomes and often high educational attainment. Being a funeral director is not a high status job, however, because Americans do not tend to hold the occupation in high esteem it has low occupational prestige. Funeral directors are, therefore, often considered members of the middle class. As illustrated by this example, occupations with high prestige can raise one’s social class even without improving one’s economic status.
Occupation
The social class associated with a particular occupation can change over time as the esteem in which the occupation is held changes. In the late-nineteenth century, at the time of this painting, doctors were not members of the upper class. As the occupation has come to require increased education and to depend upon increasing technological expertise, the occupation’s prestige has risen. Doctors are now commonly considered members of the upper-middle or upper class.
9.3: The Class Structure in the U.S.
9.3.1: Class Structure in the U.S.
American society is stratified into social classes based on wealth, income, educational attainment, occupation, and social networks.
Learning Objective
Discuss America’s class structure and its relation to the concept of the “American Dream”
Key Points
- There are competing models for thinking about social classes in the U.S. — most Americans recognize a three-tier structure that includes the upper, middle, and lower classes, but variations delineate an upper-middle class and a working class.
- High income earners likely are substantially educated, have high-status occupations, and maintain powerful social networks.
- According to the “American Dream,” American society is meritocratic and class is achievement-based. In other words, one’s membership in a particular social class is based on educational and career accomplishments.
Key Terms
- social network
-
The web of a person’s social, family, and business contacts, who provide material and social resources and opportunities.
- The American Dream
-
The belief that with hard work, courage, and determination, anyone can prosper and achieve success.
- Corporate Elite
-
A class of high-salaried stockholders, such as corporate CEOs, who do not necessarily have inherited privilege but have achieved high status through their careers.
Example
- An example of someone who achieves the American Dream might be a person who is born to poor parents but is smart and hardworking and eventually goes on to receive scholarships for a college education and to become a successful businessperson. Modern sociologists argue that in the vast majority of cases, people do not achieve the American Dream — instead, people born to poor parents are likely to stay within the lower class, and vice versa.
Most social scientists in the U.S. agree that society is stratified into social classes. Social classes are hierarchical groupings of individuals that are usually based on wealth, educational attainment, occupation, income, or membership in a subculture or social network. Social class in the United States is a controversial issue, having many competing definitions, models, and even disagreements over its very existence. Many Americans recognize a simple three-tier model that includes the upper class, the middle class, and the lower or working class. Some social scientists have proposed more complex models that may include as many as a dozen class levels. Meanwhile, some scholars deny the very existence of discrete social classes in American society. In spite of debate, most social scientists do agree that in the U.S. people are hierarchically ranked in a social class structure.
Models of U.S. Social Classes
A team of sociologists recently posited that there are six social classes in America. In this model, the upper class (3% of the population) is divided into upper-upper class (1% of the U.S. population, earning hundreds of millions to billions per year) and the lower-upper class (2%, earning millions per year). The middle class (40%) is divided into upper-middle class (14%, earning $76,000 or more per year) and the lower-middle class (26%, earning $46,000 to $75,000 per year). The working class (30%) earns $19,000 to $45,000 per year. The lower class (27%) is divided into working poor (13%, earning $9000 to 18,000 per year) and underclass (14%, earning under $9000 per year). This model has gained traction as a tool for thinking about social classes in America, but it does not fully account for variations in status based on non-economic factors, such as education and occupational prestige. This critique is somewhat mitigated by the fact that income is often closely aligned with other indicators of status; for example, those with high incomes likely have substantial education, high status occupations, and powerful social networks.
United States Social Classes
While social scientists offer competing models of class structure, most agree that society is stratified by occupation, income, and educational attainment.
A commonly used model for thinking about social classes in the U.S. attributes the following general characteristics to each tier: the upper class has vast accumulated wealth and significant control over corporations and political institutions, and their privilege is usually inherited; the corporate elite consists of high-salaried stockholders, such as corporate CEOs, who did not necessarily inherit privilege but have achieved high status through their careers; the upper-middle class consists of highly educated salaried professionals whose occupations are held in high esteem, such as lawyers, engineers, and professors; the middle class (the most vaguely defined and largest social class) is generally thought to include people in mid-level managerial positions or relatively low status professional positions, such as high school teachers and small business owners; the working class generally refers to those without college degrees who do low level service work, such as working as a sales clerk or housekeeper, and includes most people whose incomes fall below the poverty line. In the above outline of social class, status clearly depends not only on income, but also occupational prestige and educational attainment.
Debates over the Existence and Significance of U.S. Social Classes
According to the “American Dream,” American society is meritocratic and class is achievement-based. In other words, membership in a particular social class is based on educational and career accomplishments. Many sociologists dispute the existence of such class mobility and point to the ways in which social class is inherited. For example, a son or daughter of a wealthy individual may carry a higher status and different cultural connotations than a member of the nouveau riche (“new money”). Likewise, being born into a particular social class may confer advantages or disadvantages that increase the likelihood that an adult will remain in the social class into which they were born.
Social theorists who dispute the existence of social classes in the U.S. tend to argue that society is stratified along a continuous gradation, rather than into delineated categories. In other words, there is inequality in America, with some people attaining higher status and higher standards of living than others. But there is no clear place to draw a line separating one status group from the next. Whether one ascribes to the view that classes are discrete groups or levels along a continuum, it is important to remember that all social classes in the United States, except the upper class, consist of tens of millions of people. Thus social classes form social groups so large that they feature considerable internal diversity and any statement regarding a given social class’ culture should be seen as a broad generalization.
9.3.2: The Upper Class
The American upper class is the highest socioeconomic bracket in the social hierarchy and is defined by its members’ great wealth and power.
Learning Objective
Discuss the most important characteristics of the upper class in the U.S.
Key Points
- Members of the upper class accumulate wealth through investments and capital gains, rather than through annual salaries.
- Households with net worths of $1 million or more may be identified as members of the upper-most socioeconomic demographic, depending on the class model used.
- Sociologist Leonard Beeghley asserts that all households with a net worth of $1 million or more are considered “rich. ” He divides the rich into two sub-groups: the rich and the super-rich.
Key Terms
- investment
-
The expenditure of capital in expectation of deriving income or profit from its use.
- capital gain
-
An increase in the value of a capital asset, such as stock or real estate.
Example
- The top .01% of the population, with an annual income of $9.5 million or more, received 5% of the income of the United States in 2007. These 15,000 families have been characterized as the “richest of the rich. “
The American upper class refers to the “top layer,” or highest socioeconomic bracket, of society in the United States. This social class is most commonly described as those with great wealth and power, and may also be referred to as the capitalist class, or simply as “the rich. ” People in this class commonly have immense influence in the nation’s political and economic institutions as well as in the media.
Many politicians, heirs to fortunes, top business executives such as CEOs, successful venture capitalists, and celebrities are considered members of the upper class. Some prominent and high-rung professionals may also be included if they attain great influence and wealth. The main distinguishing feature of this class is their source of income. While the vast majority of people and households derive their income from salaries, those in the upper class derive their income primarily from investments and capital gains.
Households with a net worth of $1 million or more may be identified as members of the upper-most socioeconomic demographic, depending on the class model used. While most contemporary sociologists estimate that only 1% of households are members of the upper class, sociologist Leonard Beeghley asserts that all households with a net worth of $1 million or more are considered “rich. ” He divides the rich into two sub-groups: the rich and the super-rich. The rich constitute roughly 5% of U.S. households and their wealth is largely in the form of home equity. Other contemporary sociologists, such as Dennis Gilbert, argue that this group is not part of the upper class but rather part of the upper middle class, as its standard of living is largely derived from occupation-generated income and its affluence falls far short of that attained by the top percentile. The super-rich, according to Beeghley, are those able to live off their wealth without depending on occupation-derived income. This demographic constitutes roughly 0.9% of American households. Beeghley’s definition of the super-rich is congruent with the definition of upper class employed by most other sociologists. The top .01% of the population, with an annual income of $9.5 million or more, received 5% of the income of the United States in 2007. These 15,000 families have been characterized as the “richest of the rich. “
9.3.3: The Upper Middle Class
The upper-middle class refers to people within the middle class that have high educational attainment, high salaries, and high status jobs.
Learning Objective
Identify the central characteristics of the upper-middle class in the U.S.
Key Points
- Members of the upper-middle class have substantially less wealth and prestige than the upper class, but a higher standard of living than the lower-middle class or working class.
- The U.S. upper-middle class consists mostly of white-collar professionals who have a high degree of autonomy in their work. The most common professions of the upper-middle class tend to center on conceptualizing, consulting, and instruction.
- In addition to having autonomy in their work, above-average incomes, and advanced educations, the upper middle class also tends to be powerful; members are influential in setting trends and shaping public opinion.
Key Terms
- salaried professionals
-
White-collar employees whose work is largely self-directed and is compensated with an annual salary, rather than an hourly wage.
- educational attainment
-
Educational attainment is a term commonly used by statisticians to refer to the highest degree of education an individual has completed.
Example
- Doctors, lawyers, professors, and engineers are all examples of members of the upper middle class. Their professions require high educational status, are well-compensated, and are held in high esteem.
Sociologists use the term “upper-middle class” to refer to the social group consisting of higher-status members of the middle class. This is in contrast to the term “lower-middle class,” which is used for the group at the opposite end of the middle class stratum, and to the broader term “middle class. ” There is considerable debate as to how to define the upper-middle class. According to the rubric laid out by sociologist Max Weber, the upper-middle class consists of well-educated professionals with graduate degrees and comfortable incomes.
In 1951, sociologist C. Wright Mills conducted one of first major studies of the middle class in America. According to his definition, the middle class consists of an upper-middle class, made up of professionals distinguished by exceptionally high educational attainment and high economic security; and a lower-middle class, consisting of semi-professionals. While the groups overlap, differences between those at the center of both groups are considerable.
Among modern sociologists, the American upper-middle class is defined using income, education, and occupation as primary indicators. There is some debate over what exactly the term “upper-middle class” means, but in academic models, the term generally applies to highly educated, salaried professionals whose work is largely self-directed. The U.S. upper-middle class consists mostly of white-collar professionals who have a high degree of autonomy in their work. The most common professions of the upper-middle class tend to center on conceptualizing, consulting, and instruction. They include such occupations as lawyer, physician, dentist, engineer, professor, architect, civil service executive, and civilian contractor. Many members of the upper-middle class have graduate degrees, such as law, business, or medical degrees, which are often required for professional occupations. Educational attainment is a distinguishing feature of the upper-middle class. Additionally, household incomes in the upper-middle class commonly exceed $100,000, with some smaller one-income earners earning incomes in the high 5-figure range.
In addition to autonomy in their work, above-average incomes, and advanced educations, the upper middle class also tends to be powerful; members are influential in setting trends and shaping public opinion. Moreover, members of the upper-middle class are generally more economically secure than their lower-middle class counterparts. Holding advanced degrees and high status in corporations and institutions tends to insulate the upper-middle class from economic downturns. Members of this class are likely to be in the top income quintile, or the top 20% of the economic hierarchy.
University Campus
Advanced education is one of the most distinguishing features of the upper-middle class.
9.3.4: The Lower Middle Class
The lower-middle class are those with some education and comfortable salaries, but with socioeconomic statuses below the upper-middle class.
Learning Objective
Discuss the differences between the lower and upper-middle class
Key Points
- The lower-middle class, also sometimes simply referred to as “middle class,” includes roughly one third of U.S. households, and is thought to be growing.
- Individuals in the lower-middle class tend to hold low status professional or white collar jobs, such as school teacher, nurse, or paralegal.
- The lower-middle class is among the largest social classes, rivaled only by the working class, and it is thought to be growing.
Key Terms
- professional
-
A person whose occupation is highly skilled, salaried, and requires high educational attainment.
- White Collar
-
Describes a person who performs professional, managerial, or administrative work for a salary.
- college education
-
Education beyond secondary school, usually culminating in a bachelor’s degree and serving as a necessary credential for middle class occupations.
Example
- Primary school teachers are examples of members of the lower-middle class. They usually hold college degrees, but often have no graduate degree; they make comfortable incomes, but have low accumulated wealth; their work is largely self-directed, but is not high status.
In developed nations across the world, the lower-middle class is a sub-division of the middle class that refers to households and individuals who are somewhat educated and usually stably employed, but who have not attained the education, occupational prestige, or income of the upper-middle class.
In American society, the middle class is often divided into the lower-middle class and upper-middle class. The lower-middle class (also sometimes simply referred to as the middle class) consists of roughly one third of households—it is roughly twice as large as the upper-middle and upper classes. Lower-middle class individuals commonly have some college education or a bachelor’s degree and earn a comfortable living. The lower-middle class is among the largest social classes, rivaled only by the working class, and it is thought to be growing.
Individuals in the lower-middle class tend to hold low status professional or white collar jobs, such as school teacher, nurse, or paralegal. These types of occupations usually require some education but generally do not require a graduate degree. Lower-middle class occupations usually provide comfortable salaries, but put individuals beneath the top third of incomes.
Elementary School Teacher
Primary school teachers are generally considered lower-middle class. They usually hold college degrees, but often do not hold graduate degrees; they make comfortable incomes, but have low accumulated wealth; their work is largely self-directed, but is not high status.
According to some class models the lower middle class is located roughly between the 52nd and 84th percentile of society. In terms of personal income distribution in 2005, that would mean gross annual personal incomes from about $32,500 to $60,000. Since 42% of all households had two income earners, with the majority of those in the top 40% of gross income, household income figures would be significantly higher, ranging from roughly $50,000 to $100,000 annually. In terms of educational attainment, 27% of persons had a bachelor’s degree or higher. If the upper middle and upper class combined are to constitute 16% of the population, it becomes clear that some of those in the lower middle class boast college degrees or some college education.
9.3.5: The Working Class
The working class consists of individuals and households with low educational attainment, low status occupations, and below average incomes.
Learning Objective
Explain how differences in class culture may affect working-class students who enter the post-secondary education system
Key Points
- Members of the working class usually have a high school diploma or some college education, and may work in low-skilled occupations like retail sales or manual labor.
- Due to differences between middle and working-class cultures, working-class college students may face “culture shock” upon entering the post-secondary education system, with its “middle class” culture.
- Working classes are mainly found in industrialized economies and in the urban areas of non-industrialized economies.
Key Terms
- working class
-
The social class of those who perform physical or low-skilled work for a living, as opposed to the professional or middle class, the upper class, or the upper middle class.
- Blue Collar
-
Describes working-class occupations, especially those involving manual labor.
- manual labor
-
Any work done by hand; usually implying it is unskilled or physically demanding.
Example
- Secretaries, farmers, and hair stylists may all be considered members of the working class. Their occupations may require vocational training but generally do not require a college degree, and they likely earn an income above minimum wage but below the national average.
Working class is a term used in the social sciences and in ordinary conversation to describe those employed in lower tier jobs (as measured by skill, education, and income), often extending to those who are unemployed or otherwise earning below-average incomes. Working classes are mainly found in industrialized economies and in the urban areas of non-industrialized economies.
In the United States, the parameters of the working class remain vaguely defined and are contentious. Since many members of the working class, as defined by academic models, are often identified in the vernacular as being middle class, there is considerable ambiguity over the term’s meaning. In the class models devised by sociologists, the working class comprises between 30 percent and 35 percent of the population, roughly the same percentage as the lower middle class. Those in the working class are commonly employed in low-skilled occupations, including clerical and retail positions and blue collar or manual labor occupations. Low-level, white-collar employees are sometimes included in this class, such as secretaries and call center employees.
Education, for example, can pose an especially intransigent barrier in the United States. Members of the working class commonly have only a high school diploma, although some may have minimal college courses to their credit as well. Due to differences between middle and working-class cultures, working-class college students may face “culture shock” upon entering the post-secondary education system, with its “middle class” culture. Research showing that working-class students are taught to value obedience over leadership and creativity can partially account for the difficulties that many working-class individuals face upon entering colleges and universities.
Battle Strike
Class War: Workers battle with the police during the Minneapolis Teamsters Strike of 1934.
9.3.6: The Lower Class
The lower class consists of those at the bottom of the socioeconomic hierarchy who have low education, low income, and low status jobs.
Learning Objective
Differentiate between the terms “lower class,” “working poor,” and “underclass”
Key Points
- Low educational attainment and disabilities are two of the main reasons individuals can either struggle to find work or fall into the lower class.
- Generally, the term lower class describes individuals working easily-filled employment positions. These positions typically have little prestige or economic compensation, and do not require workers to have a high school education.
- Lower class households are at the greatest risk of falling below the poverty line if a job holder suddenly becomes unemployed.
Key Terms
- Poverty line
-
This is the threshold of poverty used by the U.S. Census Bureau to define the minimum income one must earn to meet basic material needs.
- public assistance
-
the various forms of material aid provided by the government to those who are in need
- underclass
-
the poorest class of people in a given society
- manual labor
-
Any work done by hand; usually implying it is unskilled or physically demanding.
Example
- Store cashiers, seasonal farmhands, and tollbooth operators may all be considered members of the lower class. Their occupations are largely unskilled and consist of repetitive tasks, and they achieve only a meager income.
Defining the Lower Class
The lower class in the United States refers to individuals who are at, or near, the lower end of the socioeconomic hierarchy. As with all social classes in the United States, the lower class is loosely defined, and its boundaries and definitions are subject to debate. When used by social scientists, the lower class is typically defined as service employees, low-level manual laborers, and the unemployed. Those who are employed in lower class occupations are often colloquially referred to as the working poor. Those who do not participate in the labor force, and who rely on public assistance, such as food stamps and welfare checks, as their main source of income, are commonly identified as members of the underclass, or, colloquially, the poor. Generally, lower class individuals work easily-filled employment positions that have little prestige or economic compensation. These individuals often lack a high school education.
Unemployment and the Poverty Line
A number of things can cause an individual to become unemployed. Two of the most common causes are low educational attainment and disabilities, the latter of which includes both physical and mental ailments that preclude educational or occupational success. The poverty line is defined as the income level at which an individual becomes eligible for public assistance. While only about 12% of households fall below the poverty threshold at one point in time, the total percentage of households that will, at some point during the course of a single year, fall below the poverty line, is much higher. Many such households waver above and below the line throughout a single year. Lower class households are at the greatest risk of falling below this poverty line, particularly if a job holder becomes unemployed. For all of these reasons, lower class households are the most economically vulnerable in the United States.
Gilbert Model
This is a model of the socio-economic stratification of American society, as outlined by Dennis Gilbert.
9.3.7: Income Distribution
The United States has a high level of income inequality, with a wide gap between the top and bottom brackets of earners.
Learning Objective
Explain the development of income distribution in the US since the 1970’s and what is meant by the “Great Divergence”
Key Points
- Since the 1970s, inequality has increased dramatically in the United States.
- Different groups get different compensation for the same work. The discrepancy in wages between males and females is called the “gender wage gap,” and the discrepancy between whites and minorities is called the “racial wage gap”.
- While earnings from capital and investment are still a significant cause of inequality, income is increasingly segregated by occupation as well. Of earners, 60% in the top 0.1% are executives, managers, supervisors, and financial professionals.
Key Terms
- great divergence
-
Refers to the growth of economic inequality in America since the 1970s.
- Gender Wage Gap
-
The difference between male and female earnings expressed as a percentage of male earnings.
- Race Wage Gap
-
The difference in earnings between racial or ethnic groups.
Example
- Occupy Wall Street’s mantra, “We are the 99%” points to what protesters see as starkly unequal distribution of income and wealth between the top 1% of earners and the rest of the population. While most social scientists see multiple tiers of income distribution within the bottom 99% of earners, the top 1% does hold a disproportionately high percentage of assets.
Unequal distribution of income between genders, races, and the population, in general, in the United States has been the frequent subject of study by scholars and institutions. Inequality between male and female workers, called the “gender wage gap,” has decreased considerably over the last several decades. During the same time, inequality between black and white Americans, sometimes called the “race wage gap,” has stagnated, not improving but not getting worse. Nevertheless, data from a number of sources indicate that overall income inequality in the United States has grown significantly since the late 1970s, widening the gap between the country’s rich and poor.
Income Distribution by Education
This graph illustrates the unequal distribution of income between groups with different levels of educational attainment. Education is an indicator of class position, meaning that unequal distribution of income by education points to inequality between the classes.
A number of studies by the U.S. Department of Commerce, Congressional Budget Office (CBO), and Internal Revenue Service (IRS) have found that the distribution of income in the United States has become increasingly unequal since the 1970s. Economist Paul Krugman and journalist Timothy Noah have referred to this trend as the “Great Divergence.” Since the 1970s, income inequality has grown almost continuously, with the exceptions being during the economic recessions in 1990-91, 2001, and 2007. The Great Divergence differs in some ways from the pre-Depression era inequality observed in the early 1900s (the last period of great inequality). Before 1937, a larger share of top earners’ income came from capital (interest, dividends, income from rent, capital gains). Post-1970, a higher proportion of the income of high-income taxpayers comes predominantly from employment compensation–60% of earners in the top 0.1% are executives, managers, supervisors, and financial professionals, and the five most common professions among the top 1% of earners are managers, physicians, administrators, lawyers, and financial specialists. Still, much of the richest Americans’ accumulated wealth is in the form of stocks and real estate.
9.4: Social Mobility
9.4.1: Social Mobility
Social mobility is the movement of an individual or group from one social position to another over time.
Learning Objective
Assess how different factors facilitate social mobility
Key Points
- A person’s ability to move between social positions depends upon their economic, cultural, human, and social capital.
- The attributes needed to move up or down the social hierarchy are particular to each society; some countries value economic gain, for example, while others prioritize religious status.
- Social mobility typically refers to vertical mobility, movement of individuals or groups up or down from one socio-economic level to another, often by changing jobs or marriage.
Key Terms
- meritocratic
-
Used to describe a type of society where wealth, income, and social status are assigned through competition.
- social mobility
-
the degree to which, in a given society, an individual’s, family’s, or group’s social status can change throughout the course of their life through a system of social hierarchy or stratification
- Relative Social Mobility
-
A measure of a person’s upward or downward movement in the social hierarchy compared to the movement of other members of their inherited social class.
- Intergenerational Mobility
-
Refers to the phenomenon whereby a child attains higher or lower status than their parents.
Examples
- An individual who is born to poor, uneducated parents but goes on to receive a college degree and become a well-paid corporate executive demonstrates upward social mobility; they improve their social status over their lifetime.
- A person who inherits a trust fund can afford to receive an expensive education; their expensive education is a marker of status that will earn them favor in job interviews; if they work hard at their job, they will eventually receive a promotion; if they make contacts with high ranking employees, they may receive special attention and privileges. In this way, a person’s economic, cultural, human, and social capital can contribute to their chances of being upwardly (or downwardly) mobile.
- In the United States, the trope of the American Dream holds that individuals who work hard and demonstrate intelligence will be professionally successful and attain high social status. By contrast, in the traditional Indian caste system the highest social position was occupied by those who demonstrated priestliness.
Social mobility refers to the movement of individuals or groups in social positions over time. Most commonly, social mobility refers to the change in wealth and social status of individuals or families. However, it may also refer to changes in health status, literacy rate, education, or other variables among groups, such as classes, ethnic groups, or countries.
Social mobility typically refers to vertical mobility, movement of individuals or groups up or down from one socio-economic level to another, often by changing jobs or marriage. Nonetheless, social mobility can also refer to horizontal mobility, movement from one position to another within the same social level, as when someone changes between two equally prestigious occupations.
In some cases, social mobility is intergenerational, as when children attain a higher or lower status than their parents held. Other times, social mobility is intra-generational, meaning that a person changes status within their lifetime. A high level of intergenerational mobility is often considered praiseworthy and can be seen as a sign of equality of opportunity in a society.
A distinction can also be drawn between absolute social mobility, which refers to the total observed movement of people between classes, and relative social mobility, which is an estimate of the chance of upward or downward movement of a member of one social class in comparison with a member from another class. An example of absolute social movement is when a region’s economic development provides quality education to a social group that previously did not have access to education, thus raising the group’s literacy level and socioeconomic status. Relative social mobility might refer to the opportunities presented to a middle class child born in a particular area of the United States, who might be predicted to attain a college level education and a maximum income of $80,000, for example.
Social mobility can be enabled to varying extents by economic capital, cultural capital, human capital, and social capital. Economic capital includes a person’s financial and material resources, such as income and accumulated wealth. Cultural capital includes resources ranging from holding a graduate degree to having a grasp of a group’s customs and rituals, both of which may confer an advantage in job markets and social exchanges. Human capital refers to such individual traits as competence and work ethic, which may enable increased educational or professional attainment. Social capital includes the advantages conferred by one’s social network, such as access to professional opportunities and insider knowledge. These types of capital facilitate mobility by providing access to opportunities and the tools to acquire wealth and status.
Societies present different opportunities for mobility depending on their systems of value. For example, Western capitalist countries are generally meritocratic. In such countries, social standing is based on such personal attributes as educational attainment, income, and occupational prestige. Thus, the degree of mobility in Western capitalist states depends on the extent to which individuals have access to educational and economic opportunity. By contrast, in countries where religious devotion is valued over economic standing, mobility may depend upon individuals’ access to religious rituals and shows of piety. In different countries or regions, the extent to which individuals have social mobility depends upon different factors.
Intergenerational Mobility in a Sample of Developed Countries
This graph shows the results of a study on how much intergenerational social mobility there is in a sample of developed countries. Countries with higher intergenerational income elasticity have lower social mobility — in countries on the left of the graph, children are likely to attain the same social status as their parents.
9.4.2: Growing Gap Between Rich and Poor
Economic inequality (also known as the gap between rich and poor) consists of disparities in the distribution of wealth and income.
Learning Objective
Discuss the causes of economic inequality
Key Points
- Economic inequality refers to inequality among individuals and groups within a society, but can also refer to inequality among countries.
- Inequality is most often measured using the Gini coefficient, a statistic used to demonstrate the dispersion of wealth in a group.
- Both the capitalist market and government interventions can increase or decrease the level of inequality in a society.
Key Terms
- Capitalist Market
-
Refers to an economic system in which supply and demand determines the cost of goods and wages for services.
- supply and demand
-
An economic model of price determination in a market based on the relative scarcity or abundance of goods and services.
- gini coefficient
-
A measure of the inequality of a statistical distribution, ranging from zero (total equality) to one (maximal inequality), used in various disciplines but especially in economics to compare incomes or wealth.
Examples
- The gap between the rich and poor can be illustrated by the fact that the three wealthiest individuals in the world have assets that exceed those of the poorest 10 percent of the world’s population.
- The fact that inequality exists between nations is seen in the statistic that the world’s wealthiest countries have just 13% of the world’s population but 45% of its purchasing power; the poorest nations have 42% of the world’s population and 9% of its purchasing power.
- Using a Gini coefficient, we see that poor nations in Africa and Latin America have some of the greatest inequality in the world, but that wealthier nations like the United States and China also have significant inequality. Thus, national prosperity does not always correspond to individual prosperity, due to inequality in the internal distribution of wealth.
- In the United States, the decline of manufacturing and subsequent high rates of unemployment among unskilled laborers illustrates the impact of market forces on inequality. When the government provides unemployment pay to unskilled laborers who cannot find work, this is a government initiative to regulate growing inequality.
Economic inequality (also known as the gap between rich and poor, income inequality, wealth disparity, or wealth and income differences) consists of disparities in the distribution of wealth (accumulated assets) and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among countries. The issue of economic inequality is related to the ideas of equity: equality of outcome and equality of opportunity. There are various numerical indices for measuring economic inequality, but the most commonly used measure for the purposes of comparison is the Gini coefficient (also known as the Gini index or Gini ratio for Italian statistician and sociologist Corrado Gini). The Gini coefficient is a statistical measure of the dispersal of wealth or income. A Gini coefficient of zero indicates that there is perfect equality—assets are equally divided between all people in the group. A Gini coefficient of one indicates that all of a group’s wealth is held by one individual. Most countries fall toward the middle of this range .
Map of Global Gini Coefficients
Using Gini coefficients, this map illustrates the extent to which each country in the world has internal inequality, or a gap between its richest and poorest citizens.
There are many reasons for economic inequality within societies, and they are often interrelated. Acknowledged factors that impact economic inequality include, but are not limited to:
- Inequality in wages and salaries;
- The income gap between highly skilled workers and low-skilled or no-skills workers;
- Wealth concentration in the hands of a few individuals or institutions;
- Labor markets;
- Globalization;
- Technological changes;
- Policy reforms;
- Taxes;
- Education;
- Computerization and growing technology;
- Racism;
- Gender;
- Culture;
- Innate ability
A major cause of economic inequality within modern economies is the determination of wages by the capitalist market. In the capitalist market, the wages for jobs are set by supply and demand. If there are many workers willing to do a job for a great amount of time, there is a high supply of labor for that job. If few people need that job done, there is low demand for that type of labor. When there is high supply and low demand for a job, it results in a low wage. Conversely, if there is low supply and high demand (as with particular highly skilled jobs), it will result in a high wage. The gap in wages produces inequality between different types of workers.
Apart from market-driven factors that affect wage inequality, government sponsored initiatives can also increase or decrease inequality. Social scientists and policy makers debate the relative merits and effectiveness of each approach to regulating inequality. Typical government initiatives to reduce economic inequality include:
- Public education: Increasing the supply of skilled labor and reducing income inequality due to education differentials.
- Progressive taxation: The rich are taxed proportionally more than the poor, reducing the amount of income inequality in society.
- Minimum wage legislation: Raising the income of the poorest workers
- Nationalization or subsidization of products: Providing goods and services that everyone needs cheaply or freely (such as food, healthcare, and housing), governments can effectively raise the purchasing power of the poorer members of society.
9.4.3: Open vs. Closed Stratification Systems
In an open class system, people are ranked by achieved status, whereas in a closed class system, people are ranked by ascribed status.
Learning Objective
Differentiate between open and closed stratification systems
Key Points
- Social stratification describes the socioeconomic levels of a society as “layers,” with the wealthiest and most powerful citizens being at the top.
- An achievement-based economic system with social mobility and relations between classes is known as an open class system.
- By contrast, people in a closed class system have been confined to their ancestral occupations, and their social status has mostly been prescribed by birth. Most closed class systems are found in less industrialized countries.
- Ascribed status is the social position one is born into and personal characteristics beyond one’s control, such as race and gender. Achieved status is one’s social standing that depends on personal accomplishments.
Key Terms
- ascribed status
-
The social status of a person that is given from birth or assumed involuntarily later in life.
- structural mobility
-
Opportunity for movement in social class that is attributable to changes in the social structure of a society, rather than to changes in an individual.
- achieved status
-
A social status of a person that is acquired, such as being an Olympic athlete, being a criminal, or being a college professor.
Examples
- Though the extent to which individuals have social mobility in the United States is debated, new members of the elite are evidence that there is some mobility between classes. President Barack Obama was born to a family without wealth and faced racial discrimination, but achieved the highest office in the country as a result of his personal achievements.
- In modern western Europe, status depends on individual educational and professional attainment, meaning that people are ranked based on achieved status.
- In medieval Europe, status depended on one’s family history, as nobility was inherited rather than attained through occupational success. Thus, people were ranked by ascribed status.
Social stratification describes the socioeconomic levels of a society as “layers,” with the wealthiest and most powerful citizens being at the top. Typically, the top layer of society tends to have lots of property, as well as prestige and social influence.
Sociologists who study stratification have identified open class systems and compared them to closed class systems. The difference between these types of class systems are their structural mobility. In a class system that has high structural mobility, it’s easy to move around between social classes based on the way the society is structured, regardless of your individual achievements.
In an open class system, the hierarchical social status of a person is achieved through their effort. These types of class systems are achievement-based economic system with social mobility and relations between classes. Status based on family background, ethnicity, gender, and religion, which is also known as “ascribed status,” is less important. In an open class system, there is no distinct line between the classes, and there is a wide range of positions within each status level. Core industrial nations seem to have more of an ideal open class system than less industrialized countries, in which there are fewer opportunities for economic advancement.
Steve Jobs’ Childhood Home
The United States exhibits an open stratification system, where individuals can move between social statuses based on achievement. Pictured is the middle class home of Steve Jobs’ parents, where he founded the technology company that eventually made him one of the world’s wealthiest people.
Compared with industrialized open systems, pre-industrial societies have mostly been found to be closed class systems where there is low social mobility. People in such societies may be confined to their ancestral occupations, and their social status is largely prescribed by status at birth. A society in which traditional or religious caste systems dominate, opportunity for social mobility is unlikely.
Achieved status is a position gained based on merit or achievement (used in an open system). An open system describes a society with mobility between different social classes. Individuals can move up or down in the social rankings; this is unlike closed systems, where individuals are set in one social position for life despite their achievements. Ascribed status is based on who a person is, not what they can do. In closed class systems, people tend to be ranked by ascribed status. When ascribed status is used to determine social position, fixed roles develop, such as those of lord and serf in feudal Europe. Roles are assigned at birth, and there is little change over one’s lifetime. Social mobility is much more frequent in countries that use achievement as the basis for status.
The French Estates
This fifteenth-century woodcutting illustrates the closed stratification system of the three estates of the French Ancien Régime. People were divided into clergy, nobility, and commoners. These categories were discrete, and there was little interaction or mobility between them.
9.4.4: Types of Social Mobility
Social mobility can be vertical and horizontal, absolute and relative, and between generations.
Learning Objective
Describe several types of social mobility
Key Points
- Social mobility refers to the movement of individuals or groups in social position over time.
- Social mobility may refer to classes, ethnic groups, or entire nations, and may measure health status, literacy, or education; however, more commonly it refers to individuals or families, and to their change in income.
- Movement up or down the social hierarchy is called vertical social mobility.
- Movement between two equally ranked social positions is called horizontal mobility.
- Intra-generational mobility (“within” a generation) is defined as change in social status over a single lifetime.
- Absolute mobility measures whether (and by how much) living standards in a society have increased; this is often measured by what percentage of people have higher incomes than their parents.
- Relative mobility refers to how likely children are to move from their parents’ place in the social hierarchy.
Key Terms
- intra-generational mobility
-
Change in social status over a single lifetime.
- vertical mobility
-
Movement of individuals or groups up or down from one socioeconomic level to another, often by changing jobs or through marriage.
- meritocratic
-
Used to describe a type of society where wealth, income, and social status are assigned through competition.
Examples
- Vertical social mobility refers to moving up or down the so-called social ladder. Barack Obama’s ascent from being the child of a middle-class interracial couple to being the president of the United States is an example of upward mobility. Bernie Madoff’s fall from being a rich and powerful Wall Street executive to a prison inmate is an example of downward mobility.
- If a secretary tires of their job and chooses to become a restaurant server, this would be an example of horizontal mobility — the positions occupy roughly the same rung on the social ladder.
- An employee of a large corporation who starts in the mailroom and ends up in a high level management position demonstrates intra-generational mobility — they improve their status over their lifetime. When a child who is born to parents with college degrees attains a graduate degree, this is an example of intergenerational mobility — the child achieves higher status than their parents.
- In the United Kingdom, middle class children born after World War II tended to have higher standards of living than their parents who endured the war. The British middle class thus experienced absolute upward mobility.
- Once the British middle class experienced absolute upward mobility, an individual child became expected to achieve greater status than their parents, even though this was not true in every individual case. The expectation that children’s status would exceed parents was based on relative social mobility.
Social mobility refers to the movement of individuals or groups in social position over time. Most commonly, social mobility refers to the change in wealth and social status of individuals or families. However, it may also refer to changes in health status, literacy rate, education, or other variables among groups such as classes, ethnic groups, or countries.
Social mobility typically refers to vertical mobility, which is the movement of individuals or groups up or down from one socioeconomic level to another, often by changing jobs or through marriage. In some instances though, social mobility is used to refer to horizontal mobility, which is the movement from one position to another within the same social level, as when someone changes between two equally prestigious occupations.
Social mobility can be intergenerational, such as when children attain a higher or lower status than their parents held. Other times, social mobility is intra-generational, meaning that a person changes status within their lifetime. A high level of intergenerational mobility is often considered praiseworthy, and can be seen as a sign of equality of opportunity in a society.
A distinction can be drawn between absolute social mobility, which refers to the total observed movement of people between classes, and relative social mobility, which is an estimate of the chance of upward or downward movement of a member of one social class in comparison with a member from another class. An example of absolute social mobility is when a region’s economic development provides education to a social group that previously did not have access to education, thus raising the group’s literacy level and socioeconomic status. Relative social mobility might refer to the opportunities presented to a middle class child born in a particular area of the United States, who might be predicted to attain a college level education and a maximum income of $80,000, for example.
Social mobility can be enabled to varying extents by economic capital, cultural capital, human capital, and social capital. Economic capital includes a person’s financial and material resources, such as income and accumulated wealth. Cultural capital includes resources ranging from holding a graduate degree to having a grasp of a group’s customs and rituals, both of which may confer an advantage in job markets and social exchanges. Human capital refers to such individual traits as competence and work ethic, which may enable increased educational or professional attainment. Social capital includes the advantages conferred by one’s social network, such as access to professional opportunities and insider knowledge. These types of capital facilitate mobility by providing access to opportunities and the tools to acquire wealth and status.
Each society presents different opportunities for mobility depending on its system of values. For example, Western capitalist countries are generally meritocratic. In these countries, social standing is based on such personal attributes as educational attainment, income, and occupational prestige. Thus, the degree of mobility in Western capitalist states depends on the extent to which individuals have access to educational and economic opportunity. By contrast, in countries where religious devotion is valued over economic standing, mobility may depend upon individuals’ access to religious rituals and shows of piety. In different countries or regions, the extent to which individuals are socially mobile depends upon different factors.
9.4.5: Social Mobility in the U.S.
Strong social and economic mobility is considered part of American Dream, though there is relatively low social mobility in the U.S.
Learning Objective
Explain how the “glass ceiling” and other factors lower social mobility in the United States
Key Points
- Socioeconomic mobility in the United States refers to the movement of Americans from one social class or economic level to another, often by changing jobs or marrying.
- The “glass ceiling” effect is the upper limit on the mobility of minorities, such as African-Americans and women, that prevents them from occupying more than a very small percentage of high status positions.
- For women, another explanation for the glass ceiling effect in the American work force is the job-family trade off.
Key Terms
- Socioeconomic Mobility
-
The movement of Americans from one social class or economic level to another, often by changing jobs or marrying.
- The American Dream
-
The belief that with hard work, courage, and determination, anyone can prosper and achieve success.
- glass ceiling
-
An unwritten, uncodified barrier to further promotion or progression for a member of a specific demographic group.
Examples
- When a young adult graduates college and begins their first full-time, salaried position, they enter a higher occupational status than they held as a student.
- The American Dream is often associated with a series of novels written by Horatio Alger in the late 19th century, most of which told the story of a young person born to a lower class family who achieved higher status through hard work and virtue.
- Women’s glass ceiling, or the upper limit on their upward mobility, has risen significantly since the feminist movement of the 1960s-70s. Still, just 3.2% of publicly traded companies have women CEOs.
Socioeconomic mobility in the United States refers to the movement of Americans from one social class or economic level to another, often by changing jobs or marrying. This “vertical” mobility can be the change in socioeconomic status between parents and children (“inter-generational”), or over the course of a lifetime (“intra-generational”). It typically refers to “relative mobility”—the chance that an American’s income or status will rise or fall compared to others in another income or status group; however, mobility can also be “absolute”— whether (and by how much) living standards in America have increased. The belief that there is significant social mobility in America, or in other words, that Americans can and do rise from humble origins to riches, is called the American Dream.
Researchers have found that in fact, there is relatively low social mobility in the United States. Explanations for this phenomenon include the following:
- The fact that affluent children have better access to superior schools in an economy where pay is higher for educated workers
- The low rate of unionization, which leads to lower wages among the least skilled workers
- Public health problems, like obesity and diabetes, which can limit education and employment
- The sheer size of the income gap between the rich and poor, which makes it harder to climb the proverbial income ladder because the rungs are far apart
- Poverty, since those with low income have significantly lower rates of mobility than middle and higher income individuals
Despite the increased presence of African Americans and women in the work force over the years, women and non-whites hold jobs with less rank, authority, opportunity for advancement, and pay than men and whites. The limit to women’s and minorities’ upward mobility is called the glass ceiling. The glass ceiling is thought to prevent women and minorities from occupying more than a very small percentage of top managerial positions. One reason for the persistence of the glass ceiling, even as explicitly discriminatory policies are eliminated, is the small proportion of high status individuals in the social networks of women and ethnic minorities. The more managers there are in an employee’s immediate work environment, the higher the employee’s chances of interacting and spending time with high status and high income employees. Consequently, the more likely these employees are to be drawn on for promotion.
For women, another explanation for the glass ceiling effect in the American work force is the job-family trade off. While both men and women feel that a conflict exists between work life and family life, women with children, particularly married women, are more likely to either temporarily leave the labor force or cut back on employment by using flex time, working part-time, or working only part of the year. Statistically, men have been willing to accept job conditions that women do not, such as working outside in extreme weather, working where you can become physically dirty on a regular basis, working extra hours, and other such undesirable conditions.
US Gender Pay Gap, by Race/Ethnicity
In the United States, white males have greater social mobility than women and racial/ethnic minorities, whose mobility is limited by the glass ceiling.
9.5: The Impacts of Social Class
9.5.1: Consequences of Social Class
One’s position in the the social class hierarchy has far-reaching effects on their health, family life, education, etc.
Learning Objective
Describe how socioeconomic status (SES) relates to the distributiuon of social opportunities and resources
Key Points
- While sociologists debate exactly how social classes are divided, there is substantial evidence that socioeconomic status is tied to tangible advantages and outcomes.
- Social class in the United States is a controversial issue, with social scientists disagreeing over models, definitions, and even the basic question of whether or not distinct classes exist.
- Many Americans believe in a simple three-class model that includes the rich or upper class, the middle class, and the poor or working class.
Key Terms
- socioeconomic
-
Of or pertaining to social and economic factors.
- hierarchy
-
Any group of objects ranked so that everyone but the topmost is subordinate to a specified group above it.
Examples
- Studies have found that upper class employees tend to feel that they are shown respect and given creative opportunities at work, and consequently report higher job satisfaction than lower class employees. Thus, the class divide in the workplace can lead to greater or lesser levels of overall happiness and stress.
- Health disparities are one example of the relationship between socioeconomic status and quality of life: lower class households have higher rates of infant mortality, cancer, cardiovascular disease, and disabling physical injury than upper class households.
In the United States, a person’s social class has far-reaching consequences. Social class refers to the the grouping of individuals in a stratified hierarchy based on wealth, income, education, occupation, and social network (though other factors are sometimes considered). One’s position in the social class hierarchy may impact, for example, health, family life, education, religious affiliation, political participation, and experience with the criminal justice system.
Social class in the United States is a controversial issue, with social scientists disagreeing over models, definitions, and even the basic question of whether or not distinct classes exist. Many Americans believe in a simple three-class model that includes the rich or upper class, the middle class, and the poor or working class. More complex models that have been proposed by social scientists describe as many as a dozen class levels. Regardless of which model of social classes used, it is clear that socioeconomic status (SES) is tied to particular opportunities and resources. Socioeconomic status refers to a person’s position in the social hierarchy and is determined by their income, wealth, occupational prestige, and educational attainment.
While social class may be an amorphous and diffuse concept, with scholars disagreeing over its definition, tangible advantages are associated with high socioeconomic status. People in the highest SES bracket, generally referred to as the upper class, likely have better access to healthcare, marry people of higher social status, attend more prestigious schools, and are more influential in politics than people in the middle class or working class. People in the upper class are members of elite social networks, effectively meaning that they have access to people in powerful positions who have specialized knowledge. These social networks confer benefits ranging from advantages in seeking education and employment to leniency by police and the courts. Sociologists may dispute exactly how to model the distinctions between socioeconomic statuses, but the higher up the class hierarchy one is in America, the better health, educational, and professional outcomes one is likely to have.
9.5.2: Physical Health
Social class is a strong social determinant of health.
Learning Objective
Describe how a low socioeconomic status (SES) can impact the health status of individuals
Key Points
- Social class is correlated to environmental hazards that increase one’s risk of contracting a disease or sustaining an injury; low access to fresh produce, exercise facilities, and preventative health programs are all environmental hazards that negatively impact health outcomes.
- Health inequality refers to the unequal distribution of environmental hazards and access to health services between demographic groups, including social classes, as well as to the disparate health outcomes experienced by these groups.
- In addition to environmental hazards, lower socioeconomic classes have lower levels of health insurance than the upper class. Much of this disparity can be explained by the tendency for lower status occupations to not provide benefits to employees.
Key Terms
- Environmental Hazards
-
Risk factors related to social and economic conditions that may produce negative health outcomes, including pollution and distribution of grocery stores, for example.
- health inequality
-
The unequal distribution of environmental health hazards and access to health services between demographic groups, including social classes.
- social determinants of health
-
The economic and social conditions that influence individual and group differences in health status.
Examples
- “Food deserts” are areas with low access to fresh produce and nutritious groceries, typically found in poor urban neighborhoods or isolated rural areas, and can be considered an environmental cause of negative health outcomes for the lower class. In food deserts, the combination of inadequate local food options and limited transportation can cause high rates of health problems, such as obesity, diabetes, and heart disease.
- “Food deserts” are areas with low access to fresh produce and nutritious groceries, typically found in poor urban neighborhoods or isolated rural areas, and can be considered an environmental cause of negative health outcomes for the lower class. In food deserts, the combination of inadequate local food options and limited transportation can cause high rates of health problems such as obesity, diabetes, and heart disease.
- Because most health services in the U.S. are paid for through insurance coverage, the low level of insurance coverage among the working and lower classes points to their low level of access to health services ranging from preventative screenings to routine medication to emergency treatment. Meanwhile, most middle, upper-middle, and upper class employees can either independently afford insurance coverage or have it provided by their employers, thus increasing their access to care.
A person’s social class has a significant impact on their physical health, their ability to receive adequate medical care and nutrition, and their life expectancy. While gender and race play significant roles in explaining healthcare inequality in the United States, socioeconomic status (SES) is the greatest social determinant of an individual’s health outcome. Social determinants of health are the economic and social conditions that influence individual and group differences in health status. Social determinants are environmental, meaning that they are risk factors found in one’s living and working conditions (including the distribution of income, wealth, influence, and power), rather than individual factors (such as behavioral risk factors or genetics). Social determinants can be used to predict one’s risk of contracting a disease or sustaining an injury, and can also indicate how vulnerable one is to the consequences of a disease or injury. Individuals of lower socioeconomic status have lower levels of overall health, less insurance coverage, and less access to adequate healthcare than those of higher SES.
Individuals with a low SES in the United States experience a wide array of health problems as a result of their economic position. They are unable to use healthcare as often as people of higher status and when they do, it is often of lower quality. Additionally, people with low SES tend to experience a much higher rate of health issues than those of high SES. Many social scientists hypothesize that the higher rate of illness among those with low SES can be attributed to environmental hazards. For example, poorer neighborhoods tend to have fewer grocery stores and more fast food chains than wealthier neighborhoods, increasing nutrition problems and the risk of conditions, such as heart disease. Similarly, poorer neighborhoods tend to have fewer recreational facilities and higher crime rates than wealthier ones, which decreases the feasibility of routine exercise.
In addition to having an increased level of illness, lower socioeconomic classes have lower levels of health insurance than the upper class. Much of this disparity can be explained by the tendency for middle and upper class people to work in professions that provide health insurance benefits to employees, while lower status occupations often do not provide benefits to employees. For many employees who do not have health insurance benefits through their job, the cost of insurance can be prohibitive. Without insurance, or with inadequate insurance, the cost of healthcare can be extremely high. Consequently, many uninsured or poorly insured individuals do not have access to preventative care or quality treatment. This group of people has higher rates of infant mortality, cancer, cardiovascular disease, and disabling physical injuries than are seen among the well insured.
Health Insurance Distribution (under 65 years)
As seen in this graph, with insurance needed for most health services, access to healthcare is not evenly distributed among Americans. The largest group of insured Americans consists of middle and upper class employees who receive health insurance through employers. As of 2007, 16% of the population had no health insurance coverage and, thus, had greatly limited access to healthcare.
Health inequality refers to the unequal distribution of environmental health hazards and access to health services between demographic groups, including social classes. For example, poor and affluent urban communities in the United States are geographically close to each other and to hospitals. Still, the affluent communities are more likely to have access to fresh produce, recreational facilities for exercise, preventative healthcare programs, and routine medical visits. Consequently, affluent communities are likely to have better health outcomes than nearby impoverished ones. The role of socioeconomic status in determining access to healthcare results in heath inequality between the upper, middle, and lower or working classes, with the higher classes having more positive health outcomes.
Farmers Market
Farmers markets are visible sources of fresh produce and healthy foods. These markets are concentrated in middle to upper income neighborhoods and are not found in food deserts.
9.5.3: Mental Health
Different classes have different levels of access to treatment and encounter different mental health stressors.
Learning Objective
Define mental health and explain why it is regarded as a socially constructed concept
Key Points
- Mental health describes a person’s level of psychological well-being, or the presence/absence of mental disorder. Mental health can include one’s ability to enjoy life and demonstrate psychological resilience.
- Mental health is socially constructed and defined; it is determined by both scientific and cultural knowledge, and it is understood differently by various groups, institutions, and professions.
- The evaluation of which mental states can be considered healthy and which require medical intervention also varies by class.
Key Terms
- mental disorder
-
A psychological pattern, potentially reflected in behavior, generally associated with distress or disability, not considered part of normal development in a person’s culture.
- mental health
-
Emotional well-being, especially with reference to outlook on life, ability to cope with stress, or the absence of a mental disorder.
Example
- Common disorders that affect a person’s mental health can range from attention deficit disorder (ADD), which is often easily treatable and not-disabling, to severe schizophrenia, which can interfere with day-to-day life processes.
Mental health describes a level of psychological well-being or the presence/absence of a mental disorder. From the perspective of “positive psychology” or “holism,” mental health may include an individual’s ability to enjoy life and to demonstrate psychological resilience when confronted with challenges. The World Health Organization defines mental health as “a state of well-being in which the individual realizes his or her own abilities, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to his or her community. “
What counts as healthy enjoyment and resilience depends upon one’s class perspective. Members of different classes encounter different stressors—lower class people likely face more financial stress as it pertains to day-to-day sustenance and well-being, while upper class people might experience stress from the intense social pressures associated with elite circles. The evaluation of which mental states can be considered healthy and which require medical intervention also varies by class.
Mental health is a socially constructed and socially defined concept; different societies, groups, cultures, institutions, and professions have very different ways of conceptualizing its nature and causes, determining what is mentally healthy, and deciding what interventions are appropriate. Definitions of mental health depend on cultural understandings in addition to biological and neurological findings. Members of different social classes often hold different views on mental health. Similarly, different social classes have different levels of access to mental health interventions and to information about mental health. Thus, the diagnosis and treatment of mental disorders varies widely by social class.
Mental Disorders (1837)
To say that mental health is socially constructed means that its definition and criteria can change across time and culture. This lithograph illustrates the eight mental health disorders that were thought to be prominent in England during the early-19th century: dementia, megalomania, acute mania, melancholia, idiocy, hallucination, erotic mania, and paralysis. Since 1837, many of those disorders have been erased from medical textbooks or modified in light of changing social norms.
9.5.4: Family Life
Family life, including marriage, childbearing and household composition are strongly influenced by social class.
Learning Objective
Give examples for effects of social class on marriage, birth rates, and family composition
Key Points
- In the United States, the probability of a first marriage ending is substantially higher for couples with low socioeconomic statuses than for those in the middle or upper class.
- Globally, the birth rate in countries with large impoverished populations is much higher than in wealthier countries.
- In nations with high levels of fertility, upper class individuals tend to have more children than their lower class peers, while in nations with low levels of fertility, upper class families exhibit even lower fertility than average.
- Social class has both a cause and an effect relationship with family composition, and lower social class is often correlated with one-parent households.
Key Terms
- overpopulation
-
A situation which occurs when the number of occupants of an area exceeds the ability of that area to provide for those occupants.
- birth rate
-
The birth rate is typically the rate of births in a population over time.
- Family Life
-
A general term that refers to marriage and childbearing patterns, household composition and home stability.
Example
- Historically, working class rural populations in agrarian regions have had larger families than wealthier urban families. As agricultural families could use the labor of additional children and had limited access to healthcare (resulting in a high rate of infant mortality), having many children was beneficial to these families of low socioeconomic status. By contrast, in urban areas with limited space and no need for manual labor, having additional children was a cost, rather than benefit, to middle and upper income families.
Family life – marriage and childbearing patterns, household composition, and home stability – are strongly influenced by social class. In the United States, the probability of a first marriage ending is substantially higher for couples with low socioeconomic statuses than for those in the middle or upper class. Research shows that the higher rates of divorce for individuals in lower social classes can often be attributed to the greater financial stress these couples face, though factors like class expectations can also play a role .
Probability of First Marriage Dissolution by Race/Ethnicity and Income (1995)
This graph shows that among all races and ethnicities, low income households are more likely to experience divorce than middle and high income households are. Thus, social class bears on rates of marriage dissolution.
Globally, the birth rate in countries with large impoverished populations is much higher than in wealthier countries, indicating that income and wealth play a role in shaping family structures. Demographers have identified a direct relationship between average number of children per household and the economic development of a nation. Today, less developed countries struggle with overpopulation while many governments in developed countries are instituting policies to deal with low birth rates. In nations with high levels of fertility, upper class individuals tend to have more children than their lower class peers. In nations with low levels of fertility, upper class families exhibit even lower fertility than average.
Social class has both a cause and an effect relationship with family composition. For example, single-parent households are likely to have a lower social class because they violate social norms. At the same time, single-parent families can contribute to financial and social instability. A single parent will often face higher costs (in the form of paid childcare), lower earnings (loss of the second parent’s income or loss of time spent at work), or both.
9.5.5: Education
Educational attainment is tied to social class, with upper class individuals acquiring higher degrees from more prestigious schools.
Learning Objective
Discuss three factors contributing to educational inequality
Key Points
- Those in high social classes are likely to have greater educational attainment than those in low social classes.
- Educational inequality is also perpetuated by legacy admission.
- Because members of high social classes tend to be better educated and have higher incomes, they are more able to provide educational advantages to their children as well.
- Educational inequality is one factor that perpetuates the class divide across generations.
Key Terms
- educational attainment
-
Educational attainment is a term commonly used by statisticians to refer to the highest degree of education an individual has completed.
- private school
-
A fee-charging private or independent school.
- legacy student
-
A student who is admitted to a school (often a college or university), primarily because one or both of their parents are alumni of the same institution.
Example
- Many prestigious colleges and universities in the U.S. are known to give preference to “legacy students,” or the children of alumni. This results in, on average, 10-30% of Ivy League undergraduates being the children of alumni, meaning that high educational attainment can be passed down through generations within the upper-middle and upper classes.
Education is a major component of social class, both directly and indirectly. Directly, individuals from higher social classes are more likely to have the means to attend more prestigious schools, and are therefore more likely to receive higher educations. Indirectly, individuals who benefit from such higher education are more likely to land prestigious jobs, and in turn, higher salaries. Just as education and social class are closely intertwined, stratification in education contributes to stratification in social class.
Educational attainment refers to the level of schooling a person completes — for instance, high school, some college, college, or a graduate degree. Upper class individuals are likely to attend schools of higher quality and of greater prestige than those attended by their lower class counterparts. Because members of high social classes tend to be better educated and have higher incomes, they are able to offer greater educational advantages, such as private schooling, to their children as well.
Upper-class parents are better able to send their children not only to exclusive private schools, but also to public state-funded schools. Such schools are likely to be of higher quality in affluent areas than in impoverished ones, since they are funded by property taxes within the school district. Wealthy areas will provide more property taxes as revenue, which leads to higher quality schools. Educational inequality is one factor that perpetuates the class divide across generations.
Such educational inequality is further reinforced by legacy admission, the preference given by educational institutions to applicants who are related to alumni of that institution. Germane to to university and college admissions (particularly in the United States), this practice emerged after World War I, primarily in response to the resulting immigrant influx. Ivy League institutions admit roughly 10% to 30% of students from each incoming class based on this factor.
Educational Attainment and Income (1991-2003)
Households with higher educational attainment are likely to have higher incomes than those with low educational attainment — members of the lowest income bracket tend to have no more than a high school education, while the highest income bracket members tend to hold graduate degrees.
9.5.6: Religion
Social class is associated with individuals’ religious affiliations and practices but not with religiosity itself.
Learning Objective
Explain how social class relates to religious affiliation, denomination and religiosity
Key Points
- Social class is an indicator of religious affiliation, with upper class members concentrated in formal denominations and lower class members concentrated in informal denominations.
- Social class is not an indicator of religiosity; members of each social class practice their faiths with a range of intensities.
- Income, and therefore social class, is related to an individual’s denomination. Religion is also strongly linked to level of education.
Key Terms
- Religious Affiliation
-
The measure of which religious denomination a person identifies with or practices
- religiosity
-
An index of how strongly religious a person is
Example
- Social class can predict which religious denomination a person is likely to belong to; members of the upper class are more likely than others to be Episcopalian or Jewish, while members of the working class are more likely to be Catholic, for example.
Social class, measured by socioeconomic status, is associated with individuals’ religious affiliations and practices. This affiliation has more to do with how religion is practiced rather than degree of religiosity. Members of lower classes tend to be affiliated with more fundamentalist religions and sect-like groups. Members of the middle class tend to belong to more formal churches. For example, American Presbyterians and Episcopalians (two highly formal Protestant denominations), tend to have above average socioeconomic statuses. Methodists and Lutherans (two moderately formal Protestant denominations) tend to have about average SES. Baptists and members of Protestant fundamentalist sects (which tend to be decentralized and informal) have below average SES. Variations in SES across denomination reveal a correlation between religious affiliation and social class.
Social class is not significantly correlated to religiosity, an index of how strongly religious a person is. Religiosity is measured by tracking frequency of church attendance, church group involvement, frequency of prayer, and other such markers of strength of religious practice. Members of each social class show a range of religiosity.
On the other hand, income, and therefore social class, is related to an individual’s denomination. When one looks at average income by religion, there are clear differences. The highest-earning religion on average is Judaism, with an average income of $72,000 in 2000. This is dramatically higher than average; the next highest-earning denomination is Unitarianism at $56,000. Jehovah’s Witness, Church of God, and Seventh Day Adventists are at the bottom of the income distribution, with $24,000, $26,000, and $31,000 respectively .
Religious Affiliation by Median Household Income (2000)
Household income, an indicator of social class, can also indicate what religious denomination a person is likely to embrace. America’s top income bracket is more likely than other groups to be Jewish, while the lowest bracket is more likely to be Jehovah’s Witnesses.
Religion is also linked with education. 72% of Unitarian and 67% of Hindu adherents are college graduates, while only 12% of Jehovah’s Witness and 15% of Church of God members graduated from college.
9.5.7: Politics
The higher one’s social class, the higher their levels of political participation and political influence.
Learning Objective
Evaluate how social class impacts political participation and political influence
Key Points
- Political office holders tend to be of high socioeconomic status, furthering the impact of class on American politics.
- Wealthy, well-educated Americans are more likely to vote and to donate money to politicians than lower class individuals are.
- Those who vote as members of a social class can be said to be participating in identity politics.
Key Terms
- Political Influence
-
The extent to which one’s political participation achieves its desired results, or the amount of power a political actor has to achieve his or her will.
- Political Participation
-
A measure of whether or not a person votes in elections, donates to campaigns, or attends public forums where decisions are made.
Examples
- In the 2008 presidential election, 76.2% of graduate degree holders voted, while only 23.4% of people without high school degrees voted. Educational attainment, an indicator of social class, can predict political participation.
- In the 2004 election, candidates George W. Bush and John Kerry both came from wealthy families, held graduate degrees, and had attended Yale University, an elite Ivy League institution.
Social class impacts one’s level of political participation and political influence. Political participation refers to whether or not a person votes in elections, donates to campaigns, or attends public forums where decisions are made, such as town meetings or city council meetings, for example. Political influence refers to the extent to which one’s political participation achieves its desired results. For example, if one attends a public forum, is their opinion likely to be heard, or if they donate money, is a politician likely to support their desired policy?
Wealthy, well-educated Americans are more likely to vote and to donate money to politicians than lower class individuals. This trend means that middle and upper class individuals have greater political participation and greater political influence than those in lower positions. Additionally, higher status people are more likely to hold political positions than lower class people. An illustration of this is the presidential election between George W. Bush and John Kerry in 2004. Both had millions of dollars of accumulated wealth, and they had higher degrees from Harvard and Yale, respectively.
Those who vote as members of a social class can be said to be participating in identity politics. Identity politics is a phenomenon that arose first at the radical margins of liberal democratic societies in which human rights are recognized, and the term is not usually used to refer to dissident movements within single-party or authoritarian states. Some groups have combined identity politics and Marxist social class analysis and class consciousness. During the 1980s, the politics of identity became very prominent and was linked with new social movement activism.
Voter Turnout by Educational Attainment –2008 Presidential Election
Educational attainment, an indicator of social class, can predict one’s level of political participation. Those with high educational attainment are more likely to vote in elections than those with little education.
9.5.8: Crime and Criminal Justice
Criminal justice is the system of practices and institutions of governments directed at deterring and mitigating crime.
Learning Objective
Describe how the administration of punishment has changed throughout history
Key Points
- When a person is suspected of violating a law, they are processed through the criminal justice system.
- The criminal justice system includes law enforcement (such as police or sheriffs), the courts, and corrections authorities (such as prison wardens and social workers).
- Legislation can attempt to refocus and restructure the criminal justice system in the United States, as when the 1967 President’s Commission on Law Enforcement and Administration of Justice issued recommendations to improve the efficacy of criminal justice.
- These reforms reflected a change in the purpose of the criminal justice system. Historically it had been used as a way to deter crime and punish criminals, but now has the added goal of rehabilitating offenders.
Key Terms
- law enforcement
-
The various government agencies involved in the prevention of crime and the apprehension of criminals.
- adjudication
-
The process of reaching a judgment or sentence in a legal proceeding.
- court
-
A tribunal established for the administration of justice, through which legal issues are adjudicated.
Examples
- Police department reforms are an example of legislative attempts to regulate or improve criminal justice. For example, after significant media coverage of police brutality toward Rodney King in 1991, the Los Angeles Police Department faced pressure to reform its training policies and policies governing the use of force.
- A legal trial is where suspected crimes are adjudicated, meaning that suspects and witnesses are questioned so that guilt or innocence and sentencing can be determined.
- Police department reforms are an example of legislative attempts to regulate or improve criminal justice. For example, after significant media coverage of police brutality toward Rodney King in 1991, the Los Angeles Police Department faced pressure to reform its training policies and policies governing the use of force.
Criminal justice is the system of practices and government institutions directed at upholding social control, deterring, and mitigating crime, or sanctioning those who violate laws with criminal penalties and rehabilitation efforts. The American criminal justice system consists of three main parts: (1) enforcement; (2) adjudication; and (3) corrections. These distinct agencies are the principal means of maintaining the rule of law within society.
The first contact an offender has with the criminal justice system is usually with law enforcement, most often the police who investigate a suspected violation and make an arrest. Next, the courts carry out adjudication or the legal processing of offenders. The courts serve as the venue where disputes are settled and justice is administered. Depending on the offense, either a judge or a jury determines whether the suspect violated the law and what their punitive sentence will be. If found guilty by the court, offenders are then turned over to correctional authorities. Correctional authorities may include prison wardens or social workers, depending on the type of offense.
Courtroom
The criminal justice system includes adjudication, wherein the courts legally process suspects to determine their guilt or innocence and sentencing.
Like all other aspects of criminal justice, the administration of punishment has taken many different forms throughout history. Early on, when civilizations lacked the resources necessary to construct and maintain prisons, exile and execution were the primary forms of punishment. Historically shame punishments have also been used as forms of censure.
The most publicly visible form of punishment in the modern era is the prison. Prisons may serve as detention centers for prisoners after trial. Jails are used for containment of the accused before trial. Early prisons were used primarily to sequester criminals and little thought was given to living conditions within their walls. In America, the Quaker movement is commonly credited with establishing the idea that prisons should be used to reform criminals. This can also be seen as a critical moment in the debate regarding the purpose of punishment.
In the United States, criminal justice policy has been guided by the 1967 President’s Commission on Law Enforcement and Administration of Justice, which issued a ground-breaking report titled “The Challenge of Crime in a Free Society. ” This report made more than 200 recommendations as part of a comprehensive approach toward crime prevention. Some of those recommendations found their way into the Omnibus Crime Control and Safe Streets Act of 1968. The commission advocated a “systems” approach to criminal justice, with improved coordination among law enforcement, courts, and correctional agencies. The commission defined the criminal justice system as the means for society to “enforce the standards of conduct necessary to protect individuals and the community. “
Police Confiscate Gun
Police officers are the most visible members of the law enforcement branch of the criminal justice system, and are charged with maintaining social order by arresting offenders who violate the law.
9.6: Poverty
9.6.1: Poverty
Poverty is the condition of not having access to material resources, income, or wealth.
Learning Objective
Assess how poverty relates to social mobility
Key Points
- The United States officially defines poverty using the poverty line. The poverty line is set at an income level that is three times the approximate cost of a subsistence level food budget.
- Poverty can also refer to the lack of opportunity to improve one’s standard of living (or poor life chances).
- The term “near poverty” refers to earnings that are above the poverty line, but by no more than 25%.
- Social mobility describes a person’s flexibility to change their economic status.
- If there is a high level of social mobility, it is relatively easy for people to escape poverty; if social mobility is low, it is very challenging for people to escape poverty.
Key Terms
- The Poverty Line
-
The threshold of poverty, below which one’s income does not cover necessities.
- Near Poverty
-
The classification “near poverty” describes a demographic group in the United States that earns 25% above the poverty line.
Examples
- People who are homeless, hungry, or ill without access to treatment are examples of people who do not have access to the material resources they need to survive. They live in poverty, as the term is used colloquially, and likely fall under formal income thresholds that designate individuals as officially poor.
- Liberia has a substantially lower GNI PPP than the United States, meaning that the nation’s wealth is much lower. Consequently, someone with an average income in Liberia has a substantially lower standard of living and much less access to resources than someone with an average income in the U.S.
- By local standards of relative poverty, the wealthiest person in a town in Liberia is well-off, but measured on a global scale that person is likely to be considered relatively poor.
Poverty describes the state of not having access to material resources, wealth, or income. The United States officially defines poverty using the poverty line. The poverty line is set at an income level that is three times the approximate cost of a subsistence level food budget. This definition has been in use in the United States to track demographic changes and allocate welfare aid since the 1960s.
“Near poverty” is the term for an income level that is just above the poverty line; it refers to incomes that are no more than 25% above the poverty line.
“Relative poverty” refers to economic disadvantage compared to wealthier members of society, whereas “absolute poverty” refers to a family (or an individual) with an income so low that they cannot afford basic necessities of survival, such as food and shelter.
Poverty may correspond not only to lack of resources, but to the lack of opportunity to improve one’s standard of living and acquire resources. “Life chances” is a term used to describe someone’s access to marketplace resources—essentially, how likely it is in their environment that they might be able to find employment or have a social safety net. Someone who is living in poverty but has high life chances may be able to improve their economic standing, but someone with low life chances will likely have a consistently low standard of living. The term for a person’s ability to change their economic status in a society is known as “social mobility. “
If there is a high level of social mobility, it is relatively easy for people to leave poverty. Easy access to higher education and prevalence of well-paying jobs contribute to social mobility. While some factors that contribute to poverty are the result of individual choices, such as dropping out of school or committing a crime, other factors affect poverty that are beyond individual control. In the United States, minorities and women are more likely to be living in poverty.
9.6.2: Measuring Poverty
Poverty is defined by deprivation, and can be measured with economic or social indicators.
Learning Objective
Compare the differences between absolute and relative poverty
Key Points
- Economic measures of poverty include access to material needs, typically necessities such as food, clothing, shelter, and safe drinking water, measures of income, or measure of wealth.
- Social measures of poverty include access to information, education, health care, or political power.
- Absolute poverty refers to a fixed threshold based on access to income and material resources, while relative inequality is measured using a region’s median income and standard of living and therefore reflects income inequality.
- Relative poverty explains poverty as socially defined and dependent on social context. Usually, relative poverty is measured as the percentage of the population with income less than some fixed proportion of median income.
Key Terms
- relative poverty
-
A measure of wealth inequality, describing an individual or group’s wealth relative to an other individual or group.
- World Bank
-
A group of five financial organizations whose purpose is economic development and the elimination of poverty.
- absolute poverty
-
A measure of poverty based on a set standard that is consistent over time and between countries, referring to the ability of individuals or groups to meet their basic needs.
Examples
- Someone living in economic poverty may be homeless; someone living in social poverty may be illiterate.
- The UN’s measure of global poverty based on whether or not a person earns $1.25/day (adjusted for international purchasing power) is a measure of absolute poverty — it is based on whether or not a person has the bare minimum to meet their material needs.
- The European Union’s poverty threshold is based on relative poverty — it measures how far below median income a person is, rather than whether or not they can meet their daily needs.
Economic measures of poverty focus on material needs, typically including the necessities of daily living such as food, clothing, shelter, or safe drinking water. Poverty in this sense may be understood as a condition in which a person or community is lacking in the basic needs for a minimum standard of well-being, particularly as a result of a persistent lack of income.
Social measures of poverty may include lack of access to information, education, health care, or political power. Poverty may also be understood as an aspect of inequitable social relationships, experienced as social exclusion, dependency, and/or diminished capacity to participate in society.
According to the World Bank, definitions of poverty include low income and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life.
Poverty is usually measured as either absolute or relative poverty. Absolute poverty refers to a set standard which is consistent over time and between countries. The World Bank uses this definition of poverty to label extreme poverty as living on less than US $1.25 per day, and moderate poverty as less than $2 or $5 a day.
Relative poverty explains poverty as socially defined and dependent on social context. Usually, relative poverty is measured as the percentage of the population with income less than some fixed proportion of median income. Relative poverty measures are used as official poverty rates in several developed countries and are measured according to several different income inequality metrics, including the Gini coefficient and the Theil Index. Measurements are usually based on a person’s yearly income and frequently take no account of total wealth.
9.6.3: Explaining Poverty: The Sociological Debate
Sociologists take two opposing approaches to explaining economic stratification: structural-functionalism and conflict theory.
Learning Objective
Discuss the critiques of structural-functionalist approaches to social stratification
Key Points
- According to structural-functionalists, stratification and inequality are actually constructive phenomena that benefit society—specifically, that the privileges attached to high-status incentive motivated, qualified people to work to achieve those positions.
- According to this logic, inequality ensures that the most functionally important jobs are filled by the best qualified people.
- Conflict theorists argue that stratification is dysfunctional and harmful to society, and that it results in competition between the rich and the poor as individuals act for their own economic advantage.
- Conflict theorists hold that competition and inequality are not inevitable but are created and maintained by people trying to gain access to scarce resources.
Key Terms
- conflict-theory approach
-
A sociological theory of poverty that argues that stratification is dysfunctional and harmful to society but persists because it benefits the rich and powerful.
- structural-functionalist approach
-
A sociological approach to poverty that maintains that all parts of society (even poverty) contribute in some way or another to the larger system’s stability.
- social stratification
-
The hierarchical arrangement of social classes, or castes, within a society.
Example
- Being a Supreme Court Justice is a high status and well-compensated occupation. A structural-functionalist would argue that Justices receive high pay and high esteem to motivate people to accept a job with a great deal of social responsibility and public scrutiny. A conflict theorist would say that passing court seats between members of the social elite insulates the judicial branch from the interests of the lower classes.
Two classic sociological approaches to poverty and social stratification are structural-functionalism and conflict theory.
The structural-functionalist approach to stratification asks the question: what function or purpose does stratification serve? The theory’s answer is that all parts of society, even poverty, contribute in some way or another to the larger system’s stability. According to structural-functionalists, stratification and inequality are actually constructive phenomena that benefit society: they ensure that the best people are at the top of the hierarchy and those who are less worthy are at the bottom. Those at the top are given power and rewards because of high abilities, and the high rewards exist to provide incentive for qualified people to do the most important work in high status occupations. According to this logic, inequality ensures that the most functionally important jobs are filled by the best qualified people.
The conflict-theory approach offers a critique of structural-functionalism. First, the critique asserts that it is difficult to determine the functional importance of any job, as a system of interdependence makes every position necessary to the functioning of society. Second, this approach assumes that the system of stratification is fair and rational, and that the ‘best’ people end up on top because of their superiority. But, according to conflict theorists, in reality the system does not work so easily or perfectly and there are barriers to qualified people ascending the hierarchy.
In contrast to structural-functionalists, conflict theorists argue that stratification is dysfunctional and harmful in society. According to this theory, stratification benefits the rich and powerful at the expense of the poor—those in high-status positions continually build on their wealth, only further entrenching the gap between high-status and low-status people. For example, many wealthy families pay low wages to nannies to care for their children, gardeners to tend to their yards, and maids to clean their homes. Conflict theorists believe that this competitive system, together with structural barriers to upward mobility ends up creating and perpetuating stratification systems. Conflict theorists hold that competition and inequality are not inevitable but are created and maintained by people. Meanwhile, structural-functionalists rebut that people do not always act solely out of economic self-interest.
Surgeons
The job of a surgeon is highly regarded and well compensated but requires years of training, long work hours, and high stress. Structural-functionalists argue that the high status that comes with the job acts as incentive for highly qualified people to pursue it.
9.6.4: Social Exclusion
Social exclusion occurs when individuals and communities are blocked from rights and opportunities that are available to others.
Learning Objective
Discuss the causes of social exclusion
Key Points
- Social exclusion is distinct from poverty. Poverty is a distributional outcome, whereas exclusion can be defined as the process of declining participation, solidarity, and access to opportunities.
- Unemployment or lack of transportation can be causes of social exclusion.
- The problem of social exclusion is usually tied to that of equal opportunity, as some people are more subject to such exclusion than others.
- Sociologists see strong links between crime and social exclusion in industrialized societies such as the United States.
Key Terms
- due process
-
a legal concept where a person is ensured all legal rights when deprived of life, liberty, and the pursuit of happiness for a given reason.
- Social exclusion
-
processes through which individuals and entire communities of people are systematically blocked from rights, opportunities, and resources that are normally available to members of society and that are key to social integration.
- equal opportunity
-
equal opportunity is a stipulation that all people should be given access to opportunities for advancement and treated similarly when competing for jobs, housing, and other resources.
Examples
- Before racial segregation was outlawed in the U.S., blacks were systematically denied access to quality schools, leading to educational, social, and eventually occupational exclusion.
- Many employers in the United States, including the government, claim to be “equal opportunity employers,” meaning that they will not systematically exclude groups of people from working for them on the basis of traits such as race, gender, or sexual orientation.
Social exclusion is a concept used in many parts of the world to characterize forms of social disadvantage. It refers to processes through which individuals and entire communities of people are systematically blocked from rights, opportunities, and resources that are normally available to members of society and that are key to social integration. These include housing, employment, healthcare, civic engagement, democratic participation, and legal due process.
Poverty and exclusion are two different concepts. Poverty is a distributional outcome, whereas exclusion can be defined as process of declining participation, solidarity, and access. It is quite difficult to measure social exclusion quantitatively, as social exclusion is relative, sensitive, and variable.
The causes of social exclusion vary from country to country, but there are general causes that social scientists have identified. In modern industrialized societies, paid work is not only the principal source of income with which to buy goods and services, but is also the fount of individuals’ identity and feelings of self-worth. Therefore, unemployment is considered a cause of social exclusion. In some circumstances, lack of transportation can lead to social exclusion. For instance, if lack of access to public transport or a vehicle prevents a person from getting to a job, training course, job center, school, or entertainment venue they may be shut out from opportunities.
The problem of social exclusion is usually tied to that of equal opportunity, as some people are more subject to exclusion than others. Marginalization of certain groups is a problem even in many economically developed countries, including the United Kingdom and the United States, where the majority of the population enjoys considerable economic and social opportunities.
Sociologists see strong links between crime and social exclusion in industrialized societies including the United States. Growing crime rates may reflect the fact that an increasing number of people do not feel valued or included in the societies in which they live. Socially excluded populations may not benefit from the avenues for income and advancement that are open to others, so they resort to illegal means of obtaining resources.
Punk
Punk social groups are often considered marginal and are excluded from certain mainstream social spaces.
9.6.5: The Dynamics of Poverty
Poverty operates in a dynamic cycle, with the effects of poverty increasing the likelihood that it will be transferred between generations.
Learning Objective
Explain the cyclical impact of the consequences of poverty
Key Points
- Poor people are less likely than others to have financial capital, education, and social capital (connections to people with specialized knowledge or in powerful positions). Without these resources, poverty-stricken individuals experience disadvantages which in turn increase their poverty.
- The cycle of poverty can trap families in poverty for generations, and often becomes widespread when economies undergo restructuring from manufacturing-based economies to service-based economies.
- Low-quality education, hunger, and homelessness can all perpetuate poverty by creating barriers to individual economic advancement.
Key Terms
- Cycle of poverty
-
The idea that poverty operates in a dynamic cycle, with the effects of poverty increasing the likelihood that it will be transferred between generations.
- economic restructuring
-
Economic restructuring refers to the phenomenon of shifting between two types of economies, such as from a manufacturing to service economy or agricultural to manufacturing economy.
Example
- Poor people are likely to have low educational attainment; because they have low educational attainment, they are likely to have poor occupational prospects and earn a low income; consequently, their children will be born poor, and will thus have low educational attainment (and so on). This perpetuation of deprivation is the cycle of poverty.
The basic premise of the poverty cycle the idea that poverty is a dynamic process—its effects may also be its causes. In economics, the cycle of poverty has been defined as a phenomenon where poor families become trapped in poverty for at least three generations. These families have either limited or nonexistent social and economic resources. There are many disadvantages that collectively work in a circular process to make it virtually impossible for individuals to break the cycle of poverty. Definitionally, poor people are less likely to have financial capital, education, and social capital (connections to people with specialized knowledge or in powerful positions). Without these resources, poverty-stricken individuals experience disadvantages that, in turn, increase their poverty.
Sociologists have argued that the economic restructuring of the U.S. and other developed nations from manufacturing to service-based economies has led to chronic joblessness in inner cities. In a service economy, there is a higher proportion of high-skill jobs than in a manufacturing economy. Thus, people who have lost their manufacturing positions are unqualified for the jobs available in the new economy. This disparity between available jobs and workforce skill is a driver of cyclical poverty.
Research shows that schools with students who perform worse than the norm are also those hiring the least-qualified teachers, because teachers tend to work in schools in the area where they grew up—teachers who are educated in poor schools come back to teach in the same low quality schools, keeping the schools from improving. Students who attend these low quality schools graduate with little human capital (skills and knowledge), and are thus unqualified for high status occupations. In this way, inadequate or lack of education can perpetuate poverty.
Additionally, those living in poverty suffer disproportionately from hunger, or in extreme cases starvation, and also exhibit disproportionately high rates of disease. These illnesses can be disabling, preventing people in poverty from working in certain occupations or at certain capacities, thus reducing one’s opportunities to improve their social and economic status.
Finally, poverty increases the risk of homelessness. Slum-dwellers, who make up a third of the world’s urban population, live in poverty no better, if not worse, than rural people, who are the traditional victims of poverty in the developing world. People who are homeless or live in slums have low access to neighborhood resources, high status social contacts, or basic services such as a phone line. This limits their ability to improve their economic position, again perpetuating poverty.
Afghan Girl Begging
A young Afghan girl begging in the street in Kabul, 8 September 2008. Photo by Mikhail Evstafiev
Children in Poverty
Street Child, Srimangal Railway Station, Srimangal, Maulvi Bazar, Bangladesh.
9.6.6: The Feminization of Poverty
The feminization of poverty refers to the fact that women represent a disproportionate share of the world’s poor.
Learning Objective
Discuss three causes of female poverty
Key Points
- The feminization of poverty is not only a consequence of lack of income, but is also the result of the deprivation of opportunities and gender biases present in both societies and governments.
- Women’s increasing share of poverty is related to the rising incidence of lone mother households.
- Women in poverty have reduced access to health care services and resources.
- The education of women and children, especially girls, can create greater opportunities for women to lift themselves out of poverty and increase their social position.
- Women’s jobs are more likely than men’s to be forms of informal employment, which takes place in small, unregistered enterprises and is not protected by government regulation.
Key Terms
- feminization of poverty
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a phenomenon in which women represent disproportionate percentages of the world’s poor
- lone mother households
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Households where a single female acts as the sole head of household; in lone mother households, there is usually no adult male present.
- formal employment
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Employment that is government regulated, such that workers are insured a wage and certain rights.
- informal employment
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Employment that takes place in small, unregistered enterprises without external regulation.
Examples
- Recent attempts to reduce global poverty have utilized systems of microcredit, which give small loans to poor households in an attempt to break the cycle of poverty. Nearly all microcredit loans are given to women, reflecting an awareness that in poor households women are often responsible for care of the family and may be the only head of household.
- Examples of types of informal employment that are dominated by women include childcare, eldercare, housecleaning, and sex work, among many others.
The feminization of poverty describes a phenomenon in which women represent a disproportionate percentage of the world’s poor. This trend is not only a consequence of lack of income, but also of lack of opportunities due to gender biases and fixed gender roles in some societies. Gender biases often deprive women of opportunities to independently pursue education or careers and are often linked to the expectation that women are responsible for childbearing and childrearing. Women’s increasing share of poverty is related to the rising incidence of lone mother households.
Many factors place women at higher risk of poverty than their male counterparts. Though low income is the primary cause of female poverty, there are many interrelated sources of this problem. Lack of income deprives women of basic needs, such as food and shelter, and limits their opportunities for advancement. As women disproportionately earn less income than men, they are deprived of basic education and healthcare, which lowers their lifetime earning potential. The responsibilities associated with motherhood further limit women’s economic attainment. Lone mother households, or households without a second parent or guardian, are the households with the highest risk of poverty. Female headed households (where no male is present) are most susceptible to poverty because they have fewer income earners to provide financial support within the household. Lone mother households relate to gender inequality issues as women are more susceptible to poverty and lack essential life needs in comparison to men.
Women in poverty also have reduced access to healthcare services and resources. Partly due to the toll of childbearing, women are disproportionately afflicted with poor health outcomes. Poor health reduced women’s ability to earn income, and, thus, is a key factor increasing and perpetuating household poverty. Increasing health services to women could, therefore, mitigate the feminization of poverty. The education of women and children, especially girls, can create greater opportunities for women to lift themselves out of poverty and increase their social position. Countries with strong gender discrimination and social hierarchies limit women’s access to basic education. Even within the household, girls’ education is often sacrificed to allow male siblings to attend school.
Employment opportunities are limited for women worldwide. Women are often barred from materially controlling their environment due to unequal access to profitable and fulfilling occupational opportunities. Employment can be divided into informal and formal occupations. Formal employment is government regulated, and workers are insured a wage and certain rights. Informal employment takes place in small, unregistered enterprises. A large proportion of women are employed in informal workplaces, reducing the regulation of their employment. This makes it more difficult for women to address workplace grievances and ensure safe and legal working conditions.
Microcredit Lending to Women
Microcredit, a system of providing small loans to individuals and families in impoverished areas in an attempt to reverse the cycle of poverty, is almost always distributed to women.
9.6.7: Government Assistance Programs
Federal assistance is defined as any program that directly assists the public in areas, such as education, health, and public welfare.
Learning Objective
Explain the organizational structure of federal assistance in the United States
Key Points
- The assistance is provided and administered by federal government agencies, such as the U.S. Department of Housing and Urban Development and the U.S. Department of Health and Human Services, through special programs to recipients.
- Programs administer assistance by “granting” or “awarding” a portion of the assistance to recipients. These are called federal grants or awards.
- Recipients of federal grants include state governments, local governments, territories and possessions, Native American tribal governments, non-profit organizations and institutions, and private individuals.
Key Terms
- single audit
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An annual examination of an aid recipient’s operations and records in order to determine whether or not the recipient complied with laws and regulations applicable to the assistance received.
- Earmark Grants
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Federal funds that have been designated for specific projects in appropriations of funding for general programs.
- Formula Grants
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Grants include a specified formula, as a rule, that tells potential recipient governments precisely how they can calculate the quantity of aid to which they are entitled under the provisions of law.
Examples
- Public welfare, such as the temporary aid to needy families (TANF) program, is a major form of federal assistance that provides food and income to families in poverty.
- An example of an agency that oversees the administration of federal assistance is the Department of Housing and Urban Development, which uses grants to provide public affordable housing.
In the United States, federal assistance is defined as any federal program, project, service, or activity provided by the federal government that directly assists or benefits the American public in the areas of education, health, public safety, public welfare, and public works, among others. The assistance is provided and administered by federal government agencies, such as the U.S. Department of Housing and Urban Development and the U.S. Department of Health and Human Services, through special programs to recipients.
Department of Housing and Urban Development
In the U.S., the Department of Housing and Urban Development administers many government assistance programs, most notably federal public housing.
In order to provide federal assistance in an organized manner, the federal government provides assistance through federal agencies. It is the agency’s responsibility to adequately provide assistance, as well as manage, account, and monitor the responsible use of federal funds which were utilized for that assistance. The agencies then supply the assistance to beneficiaries, such as states, hospitals, poverty-stricken families, etc., through hundreds of individual programs.
Programs administer assistance by “granting” or “awarding” a portion of the assistance to recipients. These are called federal grants or awards. Recipients must first apply for the award directly to the federal agency which administers the program. The agency must then determine the amount of assistance to be awarded and notifies the recipient of the award. Given the enormous size of federal assistance provided, the Federal government has designed different types of grants, each with its own unique way of awarding and operating. These include project grants, formula grants, and earmark grants.
Due to the extensive amount of assistance provided by the federal government, the Federal agencies rely on numerous monitoring activities performed by themselves, pass-through entities, and external sources. The most common monitoring procedure used is the single audit, which is an annual examination of a recipient’s operations and records in order to determine whether or not the recipient complied with laws and regulations applicable to the assistance received.