Companies like Amazon, Louis Vuitton, Zara, Walmart, Microsoft, Facebook, and Apple (to name a few) help us to understand inequality because the Chief Executive Officers (CEOs) of these companies are worth billions and many of their workers are living at or below the poverty line, even with safeguards like minimum wage laws and laws restricting the number of hours employees can work. These laws protecting worker rights have historically been won largely as a result of workplace disasters, such as the Triangle Shirtwaist Factory Fire in 1911, which killed 146 workers at a garment factory in New York City. There have been other types of workplace disasters in the United States, particularly in the extractive mining, oil, and coal industries, and these have resulted in laws put in place to protect American workers. However, most workers in other countries that manufacture apparel, electronics, and other items for export are not afforded similar protections. Consider the working conditions and lack of protections given workers involved in the 2013 collapse of the garment factory inside of the Rana Plaza in Bangladesh.

Figure 1. A demonstration of protest and mourning for the Triangle Shirtwaist Factory fire of 1911. (Photo courtesy of The U.S. National Archives/flickr)

While you read this section, think about the global system that allows U.S. companies to outsource their manufacturing to peripheral nations, where many women and children work in conditions that some characterize as slave labor. Do consumers in the United States have a responsibility to foreign workers? Should U.S. corporations be held accountable for what happens to garment factory workers who make their clothing? What can you do as a consumer and a voting citizen to help such workers? In this section, we’ll learn about systemic social stratification and social inequality in the United States and around the world.

Social Stratification and Social Inequality

Social Stratification

Figure 2. Strata in rock illustrate social stratification. People are sorted, or layered, into social categories. Many factors determine a person’s social standing, such as income, education, occupation, geography, as well as age, race, gender, and even physical abilities. (Photo courtesy of Just a Prairie Boy/flickr)

Social stratification is a system of ranking individuals and groups within societies. It refers to a society’s ranking of its people into socioeconomic tiers based on factors like wealth, income, race, education, and power. You may remember the word “stratification” from geology class. The distinct horizontal layers found in rock, called “strata,” are an illustrative way to visualize social structure. Society’s layers are made of people, and society’s resources are distributed unevenly throughout the layers. Social stratification has been a part of all societies dating from the agricultural revolution, which took place in various parts of the world between 7,000-10,000 BCE. Unlike relatively even strata in rock, though, there are not equal numbers of people in each layer of society. There are typically very few at the top and a great many at the bottom, with some variously populated layers in the middle.

Social Inequality

Social inequality is the state of unequal distribution of valued goods and opportunities. All societies today have social inequality. Examining social stratification requires a macro-sociological perspective in order to view societal systems that make inequalities visible. Although individuals may support or fight inequalities, social stratification is created and supported by society as a whole through values and norms and consistently durable systems of stratification.

Most of us are accustomed to thinking of stratification as economic inequality. For example, we can compare wages in the United States to wages in Mexico. Social inequality, however, is just as harmful as economic discrepancy. Prejudice and discrimination—whether against a certain race, ethnicity, religion, or the like—can become a causal factor by creating and aggravating conditions of economic inequality, both within and between nations.

Gender inequality is another global concern. Consider the controversy surrounding female circumcision (also known as female genital mutilation or FGM). Nations favoring this practice, often through systems of patriarchal authority, defend it as a longstanding cultural tradition among certain tribes and argue that the West shouldn’t interfere. Western nations, however, decry the practice and are working to expose and stop it.

Inequalities based on sexual orientation and gender identity exist around the globe. According to Amnesty International, a range of crimes are commonly committed against individuals who do not conform to traditional gender roles or sexual orientations (however those are culturally defined). From culturally sanctioned rape to state-sanctioned executions, the abuses are serious. These legalized and culturally accepted forms of prejudice, discrimination, and punishment exist everywhere—from the United States to Somalia to Tibet—restricting the freedom of individuals and often putting their lives at risk (Amnesty International, 2012).

Watch the following video to learn about stratification in general terms. You’ll learn some key principles regarding social stratification, namely that:

• Stratification is universal, but varies between societies;
• It is a characteristic of society and not a matter of individual differences; in other words, we need to use the sociological imagination to understand social stratification and see it as a social issue and not just an individual problem;
• It persists across generations, although it often allows for some degree of social mobility;
• Stratification continues because of beliefs and attitudes about social stratification

Systems of Social Stratification

Sociologists distinguish between two systems of stratification. Closed systems accommodate little change in social position and are typically based on ascribed status or some trait from birth. They do not allow people to shift levels and do not permit social relationships between levels. Open systems, which are based on achievement, allow movement and interaction between layers and classes. These different systems reflect, emphasize, and foster certain cultural values and shape individual beliefs. Some stratification systems include slavery, caste systems, feudal/estate systems, and class systems.

The Estate System

The ninth century gave rise to feudal societies. These societies contained a strict hierarchical system of power based around land ownership and protection. The nobility, known as lords, placed vassals in charge of pieces of land called fiefdoms. In return for the resources that the land provided and a guaranteed place to live, vassals promised to fight for their lords. Feudalism was a closed system where land ownership was inherited. The peasants who worked the land served lords for generations and generations as the estate system hierarchy was automatically reproduced at birth.

Like slavery in the U.S., a person’s birth determined his or her social standing. In the estate system, this meant a person could be born a peasant, a commoner, or with access to more property and opportunity, such as a member of the clergy or nobility might have. The justification for this rigid hierarchy was often based on certain religious beliefs, especially that of “divine right,” or the idea that some men rule by God’s will. Ultimately, the social and economic system of feudalism failed and was replaced by capitalism and the technological advances of the industrial era.

The Caste System

Figure 7. India used to have a rigid caste system. The people in the lowest caste suffered from extreme poverty and were shunned by society. Some aspects of India’s defunct caste system remain socially relevant. In this photo, an Indian woman of a specific Hindu caste works in construction, and she demolishes and builds houses. (Photo courtesy of Elessar/flickr)

Caste systems are closed stratification systems in which people can do little or nothing to change their social standing. A caste system is one in which people are born into their social standing category, or “caste,” and will remain in it their whole lives. People are assigned occupations regardless of their talents, interests, or potential. There are virtually no opportunities to improve a person’s social position.

In the Hindu caste tradition, people were expected to work in the occupation of their caste and to enter into marriage according to their caste. Endogamy refers to the practice of marrying within one’s own caste category. Accepting this social standing was considered a moral duty. Cultural values reinforced the system. Caste systems promote beliefs in fate, destiny, and the will of a higher power, rather than promoting individual freedom as a value. A person who lived in a caste society was socialized to accept his or her social standing.

Although the caste system in India has been officially dismantled, its residual presence in Indian society is deeply embedded. In rural areas, aspects of the tradition are more likely to remain, while urban centers show less evidence of this past. In India’s larger cities, people now have more opportunities to choose their own career paths and marriage partners. With India’s emergence as an economic power, corporations have introduced merit-based hiring and employment standards to the nation.

In enlightening video below, author Isabel Wilkerson teaches about African American experiences and social mobility at a particular time in U.S. history. Listen for how she applies the notion of social caste in a particular historical context:

The Class System

A class system is an open system based on both social factors and individual achievement. Individuals within a class system are free to gain a different level of education or employment from that of their parents, and can socialize with and marry members of other classes. The class system has fluid boundaries–think of “rags to riches” stories, or stories of wealthy and powerful people being brought low through criminal conviction for crimes such as fraud, insider trading, murder, or extortion.

Class is determined by wealth and income and is considered an achieved status, or one which is earned. Wealth refers to the total value of money and assets such as property and stocks, whereas income refers to the money a person earns from work and/or investments. A person can have a lot of wealth but little income (i.e., someone with a trust fund or inheritance), and conversely, someone can have a large income but very little wealth (i.e., someone who spends as much as they make, but does not purchase property or invest). 

Max Weber identified the following three components in class systems of stratification: class, status, and power (1922). Class, as stated above, includes wealth and income. Status is the prestige or honor accorded to one’s position and/or to one’s name. Power is the ability to exert one’s will over others. One can examine President Donald Trump as an individual who has reached some of the highest levels of class, status, and power. The President of the United States (POTUS) is often described as the most powerful politician in the world, and one of the main duties of POTUS is to oversee the U.S. armed forces, which itself entails an extraordinary amount of power.

Weber’s views on class differed with those held by Marx, who viewed society as composed of the two classes of bourgeoisie (owners of the means of production) and the proletariat (workers). Weber thought economic position was important, but also emphasized status and power as important components for understanding the class system. An Olympic Gold Medalist for example, might enjoy a high status, and may also increase her income and wealth through endorsements with big brands like Nike or Adidas, but this does not necessarily make them powerful.

Another sociological perspective distinguishes the classes, in part, according to the relative power and control they have over their own lives. In this view, the upper classes not only have power and control over their own lives but their social status also gives them power and control over the lives of others. Consider the 1% and the disproportionate political power that billionaires hold in making decisions that affect other peoples’ lives. 

The Weberian framework is particularly helpful in examining the interconnectedness of class, status, and power, and how these components influence class stratification. Consider decisions regarding health care. Most middle class jobs include health and dental insurance, which allow individuals and families to have a greater degree of control over health-related decisions. In contrast, the working class and the working poor have less control over their work or health care decisions, and often struggle to acquire and maintain access to health insurance. The lowest classes are made up of people in society who have the least amount of control over their lives. 

Meritocracy

Meritocracy is an ideal system based on the belief that social stratification is the result of personal effort—or demonstrated merit—that determines social standing. High levels of effort will lead to a high socioeconomic position, and vice versa. The concept of meritocracy is an ideal—because a society has never existed where social rank was based purely on merit. Because of the complex structure of societies, processes like socialization, and the realities of economic systems, social standing is influenced by multiple factors—not merit alone. Inheritance and pressure to conform to norms, for instance, disrupt the notion of a pure meritocracy. While an entirely untroubled meritocracy has never existed, sociologists see traces of meritocracy throughout modern societies when they study the role of academic and job performance rating, as well as the systems used for evaluating and rewarding achievement in these areas.

One good way to examine stratification in the United States is to break down the population in quintiles, or five groups each representing 20% of the population.

This CrashCourse video explains general information related to each quintile, then examines ways that class, status, and power all play into stratification in the U.S.

Think It Over

• In what ways does the class system support the myth of a pure meritocracy? Who is helped and who is hurt by this ideology? 
• Using your sociological imagination, consider how a history of colonialism and/or imperialism and/or slavery residually affects a country’s system of stratification. Please consider the United States and at least one other country.

Class in the United States

Below, we will explore the major divisions of social class in the United States and their key subcategories.

Upper Class

Figure 8. Members of the upper class can afford to live, work, and play in exclusive places designed for luxury and comfort. (Photo courtesy of PrimeImageMedia.com/flickr)

The upper class is considered the top, and only the elite get to see the view from there. Money provides not just access to material goods, but also access to power and status, as Max Weber described. As corporate leaders, members of the upper class make decisions that affect the job status and security of millions of people. As media owners, they influence the collective identity of the nation. They run the major network television stations, radio broadcasts, newspapers, magazines, multi-media publishing companies, and sports franchises. As board members of the most prestigious colleges and universities, they influence cultural attitudes and values. As philanthropists, they establish foundations to support social causes. As campaign contributors, they sway politicians, sometimes to protect their own economic interests.

The “Middle” Class

Figure 9. These members of a club likely consider themselves middle class. (Photo courtesy of United Way Canada-Centraide Canada/flickr)

Many people, including a majority of Americans, consider themselves middle class, but there are differing ideas about what that means. People with annual incomes of $150,000 call themselves middle class, as do people who annually earn $30,000. That helps explain why, in the United States, the middle class is broken into upper and lower subcategories.

The Upper Middle Class

Upper-middle-class people tend to hold bachelor’s and postgraduate degrees. They’ve studied subjects such as business, management, law, or medicine.

Comfort is a key concept for this group, as they work hard and live materially secure lives. Upper-middle-class people tend to pursue careers that earn higher incomes. They provide their families with large homes and nice cars. They may go skiing or boating on vacation, and their children receive high-quality education and healthcare (Gilbert, 2010).

The Average Middle Class

In the average middle class, people hold jobs supervised by members of the upper middle class. They fill administrative support positions, or work as teachers, as office or bank clerks and assistants, and are often in lower-level “white collar” jobs. Average middle class members generally hold bachelor’s degrees from four-year colleges or associate’s degrees from two-year community or technical colleges.

Compared to lower class work, average middle class jobs carry more prestige and come with slightly higher paychecks. With these incomes, people can afford a decent, mainstream lifestyle, but may struggle to maintain it. They generally don’t have enough income to build significant savings. In addition, their grip on class status is more precarious than in the upper tiers of the class system. They tend to own their own homes but the mortgages are often more cumbersome, leaving less money for travel, investments, and private schools. 

Watch this video to learn about how the middle class in America has shrunk in recent years.

The Lower Middle Class or Working Class

Working-class people often hold jobs in manual labor, or so called “blue collar” work. These jobs are often hands-on and might include physically demanding occupations such as factory work, machine maintenance, or construction. These people work jobs that may initially require little prior skill or experience and they often perform routine tasks under close supervision. At the more advanced level, these workers may hold certifications and be qualified as better paid “skilled” workers. These jobs are sensitive to recessions and other economic downturns, as well as to global movement of production overseas and the automation of factory work. When budgets are tight, this group is often the most likely to lose their jobs.

Most often working class people have less formal education and earn less money compared to the average middle class individual.

Figure 10. This man is a custodian at a restaurant. His job, which is crucial to the business, is considered lower class. (Photo courtesy of Frederick Md Publicity/flickr)

The Lower Class

The lower class is comprised of the working poor. Like some members of the working class, they often have unskilled, low-paying employment with hourly wages. However, their jobs rarely offer benefits such as healthcare or retirement planning, and their positions are often seasonal or temporary. They work as sharecroppers, migrant farm workers, house cleaners, entry-level retail and service staff, and day laborers. Some are high school dropouts. Some are illiterate, unable to read job ads.

How can people work full-time and still be poor? Even working full-time, millions of the working poor earn incomes too meager to support a family. While the federal minimum wage is $7.25 per hour, the actual minimum wage varies from state to state, with a 2018 maximum, for example, of $11.50 in Washington. However, in many states the average is about $8.00 per hour (Department of Labor, 2014). At that rate, working 40 hours a week earns $320. That comes to $16,640 a year, before tax and deductions. Even for a single person, the pay is low. A married couple with children would have a very hard time covering expenses.

The underclass is the United States’ lowest tier. Members of the underclass live mainly in inner cities and many are unemployed or underemployed. Those who do hold jobs typically perform menial tasks (i.e., picking up plastic bottles) for little pay. Some of the underclass are homeless. For many, welfare systems provide a much-needed support through food assistance, medical care, housing, and the like.

Watch the following CrashCourse video to review the social classes in the United States: upper class, upper middle class, average middle class, working class, and lower class.

Status Consistency

Social stratification systems determine social position based on factors like income, education, and occupation. Sociologists use the term status consistency to describe the consistency, or lack thereof, of an individual’s rank across these factors. Caste systems correlate with high status consistency, whereas the more flexible meritocracy class system has lower status consistency.

To illustrate, let’s consider Susan. Susan earned her high school degree but did not go to college. That factor is a trait of the lower-middle class. She began doing landscaping work, which as manual labor is also a trait of the lower-middle class or even of the lower class. However, over time, Susan started her own company. She hired employees. She won larger contracts. She became a business owner and earned a lot of money. Those traits represent the upper-middle class. There are inconsistencies between Susan’s educational level, her occupation, and her income. In a class system, a person can work hard and have little education and still be middle or upper class, whereas in a caste system that mobility would not be possible. In a class system, low status consistency correlates with having more choices and opportunities.

Think It Over

• Why do you think so many Americans describe themselves “middle class”? 
• What could be problematic with the way middle class status is calculated? In the documentary, the range for middle class inclusion for a single person is $24,000-$73,000. What factors are not being taken into account? 

glossary

capital flight:

the movement (flight) of capital from one nation to another, via jobs and resources

caste system:

a system in which people are born into a social standing that they will retain their entire lives

chattel slavery:

a form of slavery in which one person owns another (“chattel” means “property”)

class:

a group that shares a common social status based on factors like wealth, income, education, and occupation

class system:

social standing based on social factors and individual accomplishments

core nations:

dominant capitalist countries

debt accumulation:

the buildup of external debt, wherein countries borrow money from other nations to fund their expansion or growth goals

debt bondage:

the act of people pledging themselves as servants in exchange for money for passage, and are subsequently paid too little to regain their freedom

deindustrialization:

the loss of industrial production, usually to peripheral and semi-peripheral nations where the costs are lower

endogamy:

refers to the practice of marrying within one’s own caste category

first world:

a term from the Cold War era (1945-1991) that is used to describe industrialized capitalist nations

fourth world:

a term that describes stigmatized minority groups who have no voice or representation on the world stage

global stratification:

a comparison of the wealth, economic stability, status, and power of countries as a whole

gross national income (GNI):

the income of a nation calculated based on goods and services produced, plus income earned by citizens and corporations headquartered in that country

income:

the money a person earns from work or from dividend-paying investments

meritocracy:

an ideal system in which demonstrated personal effort and ability—or merit—determines social standing

peripheral nations:

nations on the fringes of the global economy, dominated by core nations, with very little industrialization

second world:

a term from the Cold War era (1945-1991) that describes nations with moderate economies and standards of living which were aligned with communist state power during that period

semi-peripheral nations:

in-between nations, not powerful enough to dictate policy but acting as a major source of raw materials and an expanding middle class marketplace

social inequality:

is the state of unequal distribution of valued goods and opportunities

social stratification:

a system of ranking individuals and groups within societies

standard of living:

the level of wealth available to acquire material goods and comforts to maintain a particular socioeconomic lifestyle

status consistency:

the consistency, or lack thereof, of an individual’s rank across social categories like income, education, and occupation

third world:

a term from the Cold War era (1945-1991) that refers to poor, unindustrialized countries that were often not aligned with either capitalist or communist state power during that period

wealth:

the value of money and assets a person has, perhaps due to inheritance