Chapter 7Social Stratification:

United States and Global Perspectives

Chapter Outline

• Social Stratification: Shipwrecks and Inequality

• Patterns of Inequality• Global Inequality• Is Stratification Inevitable? Three

Theories• Social Mobility • Noneconomic Dimensions of Class

Social Stratification: Shipwrecks and

Inequality• Writers and filmmakers use the

shipwreck as a literary device.• It allows them to sweep away all

traces of privilege and social convention and reveal human beings stripped to their essentials.

Robinson Crusoe (1719)

• Defoe was one of the first writers to portray capitalism favorably.

• He believed that people get rich if they possess the virtues of good businessmen.

• Defoe tells the story of an Englishman marooned on a desert island.

• His strong will, hard work, and inventiveness turn the poor island into a thriving colony.

Swept Away (1975)

• A yacht shipwrecks while on a cruise in the Mediterranean.

• The only survivors are a rich woman and a lowly deckhand.

• They fall in love.• When they are rescued and return

home, the woman turns her back on the deckhand, who is once again just a common laborer.

Swept Away (1975)

The movie sends three messages:1. It is possible to be rich without working

hard, because one can inherit wealth. 2. One can work hard without becoming

rich. 3. Inequality disappears only on the

desert island, without society as we know it.

Economic Inequality in the United States

• In the mid-1990s, the richest 1% owned 39% of national wealth.– The richest 10% owned almost 72%.– The poorest 40% owned 0.2% percent

of all national wealth.– The bottom 20% had a negative net

worth - they owed more than they owned.

10 Richest Americans, 2003

NameNet Worth($ billion)

Source

1 Bill Gates 46 Microsoft Corp.

2 Warren Buffet

36 Berkshire Hathaway

3 Paul Allen 22 Microsoft Corp.

4 Helen Walton 20.5 Wal-Mart stores (inheritance)

5 John Walton 20.5 Wal-Mart stores (inheritance)

10 Richest Americans, 2003

NameNet Worth($ billion)

Source

6 Alice Walton 20.5Wal-Mart stores

(inheritance)

7S. Robson

Walton 20.5 Wal-Mart stores

8 Jim Walton 20.5 Wal-Mart stores

(inheritance)

9Lawrence

Ellison 18 Oracle Corp.

10 Michael Dell 13 Dell Computer Corp.

Income Classes Households, 2001

Income Class% of

HouseholdsAnnual Income

Upper upper 1.0 $1 million

Lower upper 12.4$100,000-$999,999

Upper middle 22.5 $57,500-$99,999

Income Classes, Households, 2001

Income Class% of

HouseholdsAnnual Income

Average middle

18.8 $37,500-$57,499

Lower middle or working

22.7 $20,000-$37,499

Lower 22.6 $0-$19,999

Distribution of National Income Among Households

Patterns of Income Inequalities

• 1974 - The top 5th of households earned 9.8 times more than the bottom 5th.

• 2001 -The top 5th earned more than half of all national income.

• The rich have been getting richer, middle-income earners and the poor have been getting poorer.

Global Inequality

• 1/5 of the world’s population lacks shelter.

• More than 1/5 lacks safe water.• 1/3 of the world’s people are without

electricity.• More 2/5 lack adequate sanitation.• There are still about 27 million slaves in

Mozambique, Sudan, and other African countries.

Polling Question

• If you were asked to use one of the following four names for your parents' social class, which would you say they belong in?A. Upper classB. Middle classC. Working classD. Lower class

Gini Index

• A measure of income inequality with a value ranging from zero to 1.

• A Gini index of zero indicates every household earns the same amount of money.

• A Gini index of 1 indicates that a single household earns the entire national income.

• Most countries have Gini indexes between 0.2 and 0.5.

U.N. Indicators of Human Development, Top 6 Countries,

2000Country

and RankLife

ExpectancyAdult

LiteracyGDP/

Capita

Norway 78.1 98% 29,918

Sweden 79.3 98% 24,277

Canada 78.5 98% 27,840

Belgium 77.9 98% 27,178

Australia 78.7 98% 25,693

United States 76.5 98% 34,142

U.N. Indicators of Human Development, Bottom 6 Countries,

2000

Countryand Rank

Life Expectancy

Adult Literacy

GDP/ Capita

Ethiopia 44.5 39.1 668

Burkina Faso 45.3 23.9 976

Mozambique 40.6 44.0 854

Burundi 40.6 48.0 591

Niger 44.2 15.9 746

Sierra Leone 37.3 n.a. 490

Top Ten Countries, Millions of Internet Users, 2003

Internet Connectivity and Population Density, 2001

Social Characteristics of Internet Users, U.S.,

September 2001Family Income ($) Internet Use %

Less than 15,000 25.0

15,000–24,999 33.4

25,000–34,999 44.1

35,000–49,999 57.1

50,000–74,999 67.3

75,000 78.9

Social Characteristics of Internet Users, U.S.,

September 2001Educational Attainment Internet Use %

Less than high school 12.8

High school diploma/GED 39.8

Some college 62.4

Bachelor’s degree 80.8

Beyond bachelor’s degree 83.7

Social Characteristics of Internet Users, U.S., September 2001

Race Internet Use %

Asian American/ Pacific Islander

60.4

White 59.9

Hispanic 31.6

Black 39.8

Social Characteristics of Internet Users,U.S., September 2001

Age Group (years) Internet Use %

3–8 27.9

9–17 68.6

18–24 65.0

25–49 63.9

Household Income Inequality and Low Income, Selected

Countries

Inequality and Development

Polling Question

• Our nation should give more money to assist the poor to have better lives.A. Strongly agreeB. Agree somewhatC. UnsureD. Disagree somewhatE. Strongly disagree

Types of Societies

• Foraging Societies• Horticultural and Pastoral Societies• Agrarian Societies• Industrial Societies• Postindustrial Societies

Theories of Stratification: Marx

• A person’s class is determined by the source of his or her income:– The bourgeoisie owns the means

of production. – The proletariat do physical labor. – The petty bourgeoisie own

means of production but do some physical labor themselves.

Theories of Stratification: Weber

• Four main classes:– large property owners– small property owners– propertyless but relatively highly

educated and well-paid employees

– propertyless manual workers

Weber’s StratificationScheme

Theories of Stratification: Functionalism

• Some jobs are more importantthan others.

• People have to make sacrifices totrain for important jobs.

• Inequality is required to motivate people to undergo these sacrifices.

Criticisms of Functionalism

• Inequality encourages the discovery of talent only for those who can afford to take advantage of the opportunities available to them.

• Once people attain high-class standing, they can use their power to maintain their position and promote the interests of their families regardless of their children’s talent.

Blau and Duncan’s Model of Occupational

Achievement

Poverty Threshold

• The poverty threshold is set at three times the cost of an economy food budget and adjusted for: – number of people in the household– annual inflation rate– whether adult householders are

younger than 65

United States Poverty Threshold

• In 2003, the poverty guideline for individual adult householders under the age of 65 was $8980 per year.

• For a family of four with two children under the age of 18, the poverty guideline was $18,400.

Polling Question

• The poor are poor because the American way of life doesn't give all people an equal chance.A. Strongly agreeB. Agree somewhatC. UnsureD. Disagree somewhatE. Strongly disagree

Poverty Rate

Myths about the poor

• The majority of poor people are African- or Hispanic-American single mothers with children. – In 2001, fully 45% of the poor

were non-Hispanic whites– Female-headed families

represented 51% of the poor, 41% lived in married-couple families.

Myths about the poor

• People are poor because they don’t want to work. – More than 38% of the poor over age

15 worked in 2001, nearly 12% full time.

– 46% of poor people are under age 18 or over 65.

– Many of the poor are unable to work due to health or disability issues.

Myths about the poor

• Poor people are trapped in poverty. – Only about 12% of the poor

remain poor 5 or more years in a row

Myths about the poor

• Welfare encourages married women with children to divorce so they can collect welfare, and it encourages single women on welfare to have more children.– Women on welfare have a lower

birthrate than women in the general population.

– Welfare payments are very low and recipients suffer severe economic hardship.

Myths about the poor

• Welfare is a strain on the federal budget. – “Means-tested” welfare

programs require recipients to meet an income test to qualify.

– Such programs accounted for only 6% percent of the federal budget in 2001.

American’s View of the Class System

• Most Americans are aware of the class system and their place in it.

• Most Americans believe inequality persists because it serves the interests of the advantaged members of society.

• However, most Americans disapprove of government intervention to lower the level of inequality.

Quick Quiz

1. Since the early 1960s:a. more upward than downward mobility

has occurred in the United Statesb. more downward than upward mobility

has occurred in the United Statesc. the amount of downward and upward

mobility has been about equald. more upward than downward mobility

has occurred in the United States, and the gap between upward and downward mobility started to shrink when many Americans reported deterioration in their economic situation

Answer: d

1. Since the early 1960s: more upward than downward mobility has occurred in the United States, and the gap between upward and downward mobility started to shrink when many Americans reported deterioration in their economic situation.

2. The _________________ is a measure of income inequality that ranges from 0 (every household earns the same amount of money) to 1 (all income is earned by a single household).

Answer: Gini Index

• The Gini Index is a measure of income inequality that ranges from 0 (every household earns the same amount of money) to 1 (all income is earned by a single household).

3. For Marx, the bourgeoisie:a. own the means of productionb. do not do any physical laborc. own the means of production

and do physical work themselves

d. are economically inefficiente. own the means of production,

and do not do any physical labor

Answer: e

• For Marx, the bourgeoisie own the means of production, and do not do any physical labor.

4. Which of the following is not one of the major classes in capitalist society according to Weber?a. large property ownersb. small property ownersc. service workersd. propertyless but educated and

well-paid employeese. propertyless manual workers

Answer: c

• Service workers are not one of the major classes in capitalist society according to Weber.

5. According to the functional theory of stratification, social inequality is necessary because the prospect of high material rewards motivates people to undergo the sacrifices needed to get a higher education.

a. Trueb. False

Answer: a:

• According to the functional theory of stratification, social inequality is necessary because the prospect of high material rewards motivates people to undergo the sacrifices needed to get a higher education.

6. lau and Duncan's main research finding:a. ascription is about as powerful as

achievement in determining social mobility in American society

b. respondents' own achievements had much more influence on their current occupational status than did ascribed characteristics

c. ascribed characteristics had much more influence on respondents' current occupational status than did their own achievements

d. all of the above

Answer: b

6. lau and Duncan's main research finding: respondents' own achievements had much more influence on their current occupational status than did ascribed characteristics.