PowerPoint Presentation prepared by Terri Petkau, Mohawk College CHAPTER SIX Social Stratification Harvey Krahn INTRODUCTION • Will examine: Types of stratification systems Explanations of social stratification Occupations, social class, and inequality in Canada Copyright © 2011 by Nelson Education Ltd Occupational mobility in Canada Distribution of wealth in Canada Material inequality and the poor in Canada* 6-3 SOCIAL STRATIFICATION • Social stratification: Refers to persistent patterns of social inequality in a society Copyright © 2011 by Nelson Education Ltd Is perpetuated by the way wealth, power, and prestige are distributed and passed on from one generation to the next Exists in all societies* 6-4 FEATURES OF SOCIAL HIERARCHIES • Status: Rank or position in a social hierarchy • Statuses may be: Copyright © 2011 by Nelson Education Ltd i. Ascribed (assigned at birth), or ii. Achieved (earned by performance)* 6-5 TYPES OF STRATIFICATION SYSTEMS 1. Open stratification system: Stratification system in which merit rather than inheritance (ascribed characteristics) determines social rank Allows for social change Copyright © 2011 by Nelson Education Ltd • Is reflected in a meritocracy: Positions are achieved, not ascribed Characterized by equal opportunity and high social mobility (movement up or down a social hierarchy)* 6-6 TYPES OF STRATIFICATION SYSTEMS 2. Copyright © 2011 by Nelson Education Ltd Closed stratification system Stratification system in which inheritance rather than merit determines social rank Little social change possible • Reflected in a caste system: Positions are ascribed, not achieved Characterized by little social mobility • Although Canada is in principal a meritocracy, ascribed statuses still play an important role* 6-7 CLASS AND CLASS STRUCTURE • Class: Position in an economic hierarchy occupied by individuals or families with similar access to, or control over, material resources (e.g., working class, professional class) • Class structure: Relatively permanent economic hierarchy comprising different social classes Copyright © 2011 by Nelson Education Ltd • Socioeconomic status: Person’s general status within an economic hierarchy, based on income, education, and occupation* 6-8 EXPLANATIONS OF SOCIAL STRATIFICATION • Several theories or explanations of social stratification Copyright © 2011 by Nelson Education Ltd • Accounts offered by Marx, Weber, Davis and Moore, Lenski, Wright, and Parkin Understandings are mediated by time and place in which social theories developed* 6-9 MARX ON STRATIFICATION • Writings focus particularly on 19th century European world rapidly being changed by industrial capitalism Industrial Revolution: Tremendous increase in level of economic production and degree of inequality Copyright © 2011 by Nelson Education Ltd • Key concepts in Marx’s theory: Mode of production: Overall system of economic activity (e.g., slavery, capitalism)…* 6-10 MARX ON STRATIFICATION • Mode of production comprises: i. Means of production: Technology, capital investments, raw materials used in production Copyright © 2011 by Nelson Education Ltd ii. Social relations of production: Relationships between main classes involved in production* 6-11 MARX: SOCIAL CLASSES Copyright © 2011 by Nelson Education Ltd • Two major classes within industrial capitalism: i. The bourgeoisie: Owners of the means of production ii. The proletariat: Workers who exchange their labour for a wages • Secondary class: The petite bourgeoisie: Independent owners/ producers (e.g., farmers) and small business owners* 6-12 MARX: EXPLOITATION • Exploitation of wage labourers was result of surplus value: Copyright © 2011 by Nelson Education Ltd When proceeds from sale of goods produced by wage-labourers far exceed cost of wages, raw materials, etc. Surplus value then turned into profits for owners (i.e., capitalists)* 6-13 MARX: CLASS CONFLICT • Class conflict: Conflict between major classes within a mode of production Is driving force behind social change Eventually leads to evolution of new mode of production Copyright © 2011 by Nelson Education Ltd • Envisioned capitalism being replaced with socialist mode of production (i.e., no private property with its attendant exploitation and inequality)* 6-14 MARX: CLASS CONSCIOUSNESS AND REVOLUTION • Theorized workers would develop classconsciousness: Recognition by members of a class of their shared interest in opposition to members of another class Copyright © 2011 by Nelson Education Ltd Would lead to revolutionary upheaval and eventually classes society based on collective ownership of means of production (e.g., communism)* 6-15 RESPONSES TO MARX • Criticized for predictions not finding support in: i. Later capitalist societies, which were characterized by absence of widespread class conflict, growth of the middle class, and relative decline in material inequality in 20th century Example: Western Europe and North America Copyright © 2011 by Nelson Education Ltd ii. Later socialist systems of government, which were characterized by persistent inequality, and new hierarchy that controls political and bureaucratic apparatus Example: Russia* 6-16 WEBER ON STRATIFICATION • Focused on determinants of power: Ability to impose one’s wishes on others • i. Copyright © 2011 by Nelson Education Ltd Structural basis of power: Class (power derived from position in economic hierarchy) ii. Status (power derived from culturally and socially defined position that person occupies in a group) iii. Party (political power) • Power depends on one’s location in these three structures* 6-17 WEBER: SOCIAL CLASS AND LIFE CHANCES • Gave primary emphasis in social stratification to economic underpinnings • Claimed there was larger variety of class positions than found in Marx’s theory Copyright © 2011 by Nelson Education Ltd • Emphasized life chances: Opportunities (or lack thereof) for higher standard of living and a better quality of life that are available to members of a given class* 6-18 DAVIS AND MOORE: FUNCTIONAL THEORY OF STRATIFICATION • Inequality exists in all societies Must be necessary • All societies have occupational roles that need to be filled, with some roles requiring more training than others (e.g., the more important roles) Copyright © 2011 by Nelson Education Ltd • Greater rewards (e.g., money, prestige) necessary to encourage people to undertake extended training and fill these important roles • Social inequality is therefore necessary and inevitable* 6-19 CRITICISMS OF DAVIS AND MOORE Copyright © 2011 by Nelson Education Ltd • Theory does not account for the following: Huge income and wealth inequalities Gender differences in income even if same type of work undertaken Inherited wealth Arbitrariness of denoting most important roles (e.g., movie stars, nurses, daycare workers) • Criticized as justification for large inequalities* 6-20 LENSKI: TECHNOLOGY AND STRATIFICATION SYSTEMS • Society’s technological base largely determines degree of inequality within it Copyright © 2011 by Nelson Education Ltd • Owners of means of production need to rely on well-educated managerial and technical workers Reliance gives rise to workers’ demands for greater portion of the growing wealth in industrial society Employers give in to demands because they cannot produce wealth without these workers • Envisioned movement towards more equal distribution of wealth* 6-21 WRIGHT’S NEO-MARXIST THEORY OF CLASS • Recognized that as industrial capitalism matured, the middle class had grown and become more diverse Copyright © 2011 by Nelson Education Ltd • Emphasized “contradictory class locations”: An occupational grouping with divided loyalties • Also identified three classes of owners and nine classes of wage labourers* 6-22 ERIC OLIN WRIGHT’S TYPOLOGY OF CLASS LOCATION IN CAPITALIST SOCIETY Copyright © 2011 by Nelson Education Ltd 6-23 WRIGHT’S NEO-MARXIST THEORY OF CLASS • Argued exploitation of one class by another can occur through: Control of property or means of production (as Marx insisted) Copyright © 2011 by Nelson Education Ltd Ownership of skill or credential assets, and Control of high positions within organizations* 6-24 PARKIN’S NEOWEBERIAN APPROACH Copyright © 2011 by Nelson Education Ltd • Developed Weber’s concept of social closure: Methods used by more powerful groups to maintain their unequal access to status and resources, and to exclude others from such access • i. Two types of closure strategies: Exclusion: Organized effort of the privileged, more powerful groups to maintain their advantaged position (e.g., lawyers, members of trade unions) Usurpation: Effort of excluded groups to gain advantages and power at expense of more powerful groups (e.g., women)* ii. 6-25 OCCUPATIONS, SOCIAL CLASS, AND INEQUALITY IN CANADA • Most prominent occupational shift over 20th century was decline in agricultural occupations • Also decline (albeit less) in other natural resourcebased occupations (e.g., forestry, fishing, mining) Copyright © 2011 by Nelson Education Ltd • Increase in white-collar occupations (e.g., managerial, professional, clerical [office jobs], sales, and service categories) Have come to greatly outnumber blue-collar occupations (e.g., manufacturing, construction, transportation, and resource-based operations)* 6-26 OCCUPATIONS, SOCIAL CLASS, AND INEQUALITY IN CANADA • Increase in proportion of occupations requiring higher education • Rise in average incomes (until early 1980s) Copyright © 2011 by Nelson Education Ltd • Occupational shifts suggest: Greater class diversity, not polarization of classes Rising standard of living for Canadian workers, not increasing poverty and exploitation* 6-27 Copyright © 2011 by Nelson Education Ltd OCCUPATIONAL DISTRIBUTION OF LABOUR FORCE PARTICIPANTS,* CANADA, 1911, 1951, 2006 6-28 OCCUPATIONS, SOCIAL CLASS, AND INEQUALITY IN CANADA Copyright © 2011 by Nelson Education Ltd • Gender-based labour market stratification has continued: Since middle of last century, proportion of women in labour force has risen But mostly in low-paid, low status “pink-collar” sector (clerical, sales, and service occupations) • Large class of paid workers differentiated by: Decision-making authority Income status Occupational power* 6-29 OCCUPATIONS, SOCIAL CLASS, AND INEQUALITY IN CANADA • Dramatic decrease in proportion of self-employed Canadians over past century • Increase in unemployment Copyright © 2011 by Nelson Education Ltd • Part-time and temporary work more common • Income growth has stopped • Increase in income and wealth inequality* 6-30 OCCUPATIONAL MOBILITY AND STATUS ATTAINMENT • Occupational mobility: Moving up and down occupational and income ladders • Intragenerational occupational mobility: Mobility within an individual’s lifetime Copyright © 2011 by Nelson Education Ltd • Intergenerational occupational mobility: Process of reaching occupation location higher or lower than location held by parents • Occupational status attainment: Main determinant of status of a person’s current job is status of first job (dependent on educational attainment)* 6-31 OCCUPATIONAL MOBILITY IN CANADA Copyright © 2011 by Nelson Education Ltd • Globally, one of highest rates of upward mobility • More upward than downward intergenerational mobility • Relatively open stratification system (especially during 1970s and 1980s) • Yet intergenerational transfer of advantage persists* 6-32 THE DISTRIBUTION OF WEALTH IN CANADA • Limited number of people continue to own or control very large portion of wealth • Concentration of ownership and wealth inequality continue to increase: Copyright © 2011 by Nelson Education Ltd Wealthiest 10% of families holds almost half of all wealth in Canada CEO’s multimillion dollar compensation packages versus 11% of Canadian families with no net worth* 6-33 INCOME DISTRIBUTION: HIGHPAYING AND LOW-PAYING OCCUPATIONS • Upper middle class: Those with well-paid managerial and professional occupations (e.g., lawyers, dentists) Copyright © 2011 by Nelson Education Ltd • Lower working class: Retail workers and those employed in service occupations (e.g., childcare and home support services) • Gender differences hidden in occupational earning patterns: Females earn less than males in all occupations but earnings ratio varies considerably by occupation* 6-34 AVERAGE EARNINGS IN SIX OCCUPATIONS MOST COMMONLY HELD BY 15- TO 24-YEAROLDS WITH A UNIVERSITY DEGREE/ DIPLOMA AND WORKING FULL-TIME, FULL YEAR BY SEX, CANADA, 2006 Copyright © 2011 by Nelson Education Ltd 6-35 INCOME INEQUALITY • Since mid-20th century, little change in distribution of total income across households • But increase in income inequality Decline in share of total income received by the three middle quintiles Copyright © 2011 by Nelson Education Ltd • Immigrants significantly overrepresented among Canada’s working poor despite higher education and training • Since 1990, average family income increased by 1%, versus 40% increase in average family debt* 6-36 THE POOR: DEFINING AND MEASURING POVERTY • Various ways of defining poverty: Absolute poverty: Those with so little income that survival is difficult Copyright © 2011 by Nelson Education Ltd Relative poverty: Those with significantly less income than others in their society • Canada’s low-income cut-off (LICO) or poverty line: Those who spend more than 55% of gross income on basic necessities* 6-37 WHO ARE THE POOR? • Proportion of poor Canadians in 2001: 14.4% • Only minority unemployed or out of labour force • Working poor (those employed in low wage jobs) make up large proportion of the poor Copyright © 2011 by Nelson Education Ltd • Aboriginal Canadians among poorest citizens • Poverty rate for single-parent families and seniors (aged 65+) living alone: Both 42% in 2001 • Poverty not a static status: Sizable number move in and out of poverty each year* 6-38 INCIDENCE OF LOW INCOME FOR SELECTED FAMILY UNIT TYPES, CANADA, 1980, 1990, 2004 Copyright © 2011 by Nelson Education Ltd 6-39 SOCIAL ASSISTANCE FOR THE POOR • Misconception that level of social assistance provides disincentive to work • Ontario social assistance provides: Copyright © 2011 by Nelson Education Ltd Income of only 34% of poverty line for single employable adults Income of only 56% of poverty line for single parents Income of only 59% of poverty line for those with disabilities* 6-40 TOTAL WELFARE INCOME ($), AS PERCENTAGE OF (PRETAX) POVERTY LINE AND OF MEDIAN INCOME Copyright © 2011 by Nelson Education Ltd 6-41 MATERIAL INEQUALITY IN CANADA: A SUMMARY • Level of material inequality is relatively low compared with many other countries and with a century ago Copyright © 2011 by Nelson Education Ltd • But have witnessed increases in: Corporate concentration Wealth inequality Income inequality Number of working poor Unemployment rates (long-term trend) Part-time and temporary employment Inequality in earnings (re: polarization in hours worked)* 6-42 MATERIAL INEQUALITY IN CANADA: A SUMMARY • Reduction in employment opportunities • More competitive economic environment (due to globalization) • Routine layoffs and downsizing Copyright © 2011 by Nelson Education Ltd • Replacement of full-time permanent jobs with parttime and temporary positions • Weakened labour movement • Decrease in state efforts to reduce material inequalities* 6-43 CONSEQUENCES OF MATERIAL INEQUALITY • Position in class structure has effect on belief systems, behaviours, voting patterns, lifestyles, and, most importantly, life chances (e.g., health, longevity, educational attainment, criminality) Copyright © 2011 by Nelson Education Ltd • Increasing inequality may mean more social unrest among the poor But more opposition today from better-organized, better-funded middle class* 6-44 RESPONDING TO INEQUALITY Copyright © 2011 by Nelson Education Ltd • Two views: 1. Inequality is inevitable and need not be addressed (tends to be espoused by the well-off) 2. Inequality is unjust and needs to be addressed (tends to be espoused by the poor): i. Socialist response: Overthrow capitalism ii. Reformist response: Government redistribution of wealth to the poor (e.g., through pensions, minimum-wage legislation, unemployment insurance, etc.)* 6-45 RESPONDING TO INEQUALITY: CANADA’S RESPONSE? • Canada’s “liberal” welfare policies espouse faith in power of free market to produce wealth and improve condition of poor (despite little evidence of success) Copyright © 2011 by Nelson Education Ltd Priority today given to deficit-reducing initiatives rather than reduction of material inequality • Responding to inequality effectively will require willingness on part of many to accept less so that others can have more** 6-46