Labour markets and social inequalities

G

Social Stratification

Systematic Inequalities between groups of people

Socioeconomic Level

refers to the position or rank of an individual or group within a society based on various factors that reflect their economic and social standing. It is commonly used to describe the relative position of individuals or families within a hierarchical structure

• A higher level generally provides better access to resources, opportunities, and a higher standard of living,

• while a lower level may involve limited access to these resources.

Three basic models of social stratification

• Slavery - ownership of certain people

• Caste- status for life

• Class- position based on economics

Slave Systems

some people are considered less than human and are owned as property. Their legal rights are limited, certain relationships are prohibited, and as you might imagine, and social power is essentially nonexistent.

Caste Systems

societal groupings are based on deeply held cultural ideals and boundaries. The Indian caste system exemplifies this societal form of stratification, having both cultural and economic impacts. Caste systems are rigidly based. They are characterized by hereditary status, endogamy, and social barriers and are sanctioned by custom, law, and religion.

Class Systems

Stratification system we are familiar with. People are divided according to economic markers such as income, wealth, ownership, and so on. There are many different characterizations of what constitutes class, and we will be talking about these characterizations today.

socioeconomic status view

Income, occupation, education, power

Social stratification cube 

–economic capital (income, salary)

–education (prestige, respect)

– power (authority)

—Time

What is the "Reproduction of Social Strata" in terms of social class?

Social class tends to be passed down across generations, with advantages like education, income, and marriage choices often reinforcing class divisions over time.

How does social class affect university attendance in Europe?

Children from the highest social classes are 80% more likely to attend university compared to children from working-class backgrounds.

What is the correlation between parents' and children's education levels?

The correlation is about 0.44, indicating a moderate positive relationship; children tend to have similar educational levels to their parents.

How does parents' income relate to children's income?

There is a correlation of 0.35, meaning children’s incomes often mirror their parents', suggesting that social mobility can be limited.

What is marriage homogamy and how common is it?

marriage homogamy refers to marrying within the same social class. It occurs in about 55% of marriages and is more likely (70%) among children from the highest social classes.

What does "marriage preferences vs. marriage remainders" mean?

People tend to prefer partners from similar social classes (“marriage preferences”), while those who don’t marry within their class are less common (“marriage remainders”), reinforcing social class structures.

Two reasons of reproduction

Social and Cultural

What is the Glass Ceiling? (social reproduction)

an invisible barrier that prevents certain groups, often women and minorities, from advancing to higher-level positions in organizations, despite qualifications and achievements.

What are Social Barriers?(social reproduction)

are obstacles, like discrimination and lack of access to education or networks, that restrict individuals or groups from achieving social mobility or equal opportunities.

What is a Social System?(social reproduction)

is the organized structure of society, which includes institutions, norms, and values that shape relationships and influence social roles and statuses.

Why is it said that "everyone wants the same"?(social reproduction)

This phrase suggests that, regardless of background, people generally aspire to similar goals (like stability, success, and fulfillment), but social barriers and systems affect their ability to achieve these equally.

What is the Sticky Floor? (cultural reproduction)

term for barriers that keep low-income or entry-level workers from advancing in their careers, limiting upward mobility within organizations.

What are Cultural Values and Attitudes?

are shared beliefs and perspectives within a society or group that influence how people think, behave, and interact.

How do Cultural Values Affect Behavior?

Cultural values shape behavior by providing guidelines on what is acceptable, desirable, and meaningful, influencing choices, habits, and interpersonal interactions.

Why do "people want different things"?

Individuals’ desires and goals are influenced by their personal experiences, cultural backgrounds, and values, leading to varied aspirations and definitions of success or happiness.

Two concepts of social stratification

inequality of conditions and inequality of opportunities

What is Inequality of Conditions?

refers to the unequal distribution of resources, income, wealth, and opportunities, resulting in significant differences in people’s living standards and access to goods and services.

What is Unequal Distribution of Income?

means that income is not shared equally among individuals or groups, leading to disparities in wealth, quality of life, and economic stability.

How do Differences in Wealth and Material Conditions Affect People?

Differences in wealth and material conditions create social and economic divides, impacting access to housing, healthcare, education, and other essential resources.

How Do Different Incomes Affect Access to Goods?

it affect people’s ability to purchase goods and services, with higher incomes providing greater access to quality goods, services, and opportunities.

What is Inequality of Opportunity?

refers to the unequal chances individuals have to succeed due to differences in their starting positions, often influenced by factors like family background, location, and socioeconomic status.

What are Unequal Start Positions?

mean that people begin life with different resources and advantages, such as family wealth, quality of education, or social connections, affecting their future opportunities.

How Do Different Start Positions Affect Education, Jobs, and Incomes?

individuals have varied access to quality education, job opportunities, and income levels, impacting their long-term economic and social mobility.

What is Cumulative Advantage?

refers to the process by which individuals or groups with initial advantages continue to gain more benefits over time, reinforcing their superior status.

What is the Matthew Effect?

describes the phenomenon where "the rich get richer and the poor get poorer," highlighting how initial advantages can lead to increased opportunities and rewards over time.

How do Advantages Tend to Strengthen Themselves?

a tendency to strengthen themselves because those who are already advantaged gain access to more resources and opportunities, perpetuating their higher social status.

How do Disadvantages Affect Social Class Reproduction?

can also strengthen over time, as individuals facing initial setbacks are often limited in their access to resources, leading to compounded challenges.

What is Compensatory Advantage?

refers to the resources (economic, cultural, social, family) that individuals use to mitigate risks and challenges throughout their lives, influencing their opportunities for success.

What are Self-Maintaining Properties of Social Stratification?

All forms of social stratification have powerful self-maintaining properties that preserve existing conditions, making it difficult to change one's social class or status over time.

Lorenz Curve

A graphical representation showing the distribution of income/wealth. It illustrates the shape of material inequality; the further it bows from the diagonal line, the greater the inequality.

Gini Coefficient:

A numerical measure (0 to 1) indicating the size of material inequality. A coefficient of 0 represents perfect equality, while 1 signifies maximum inequality. It quantifies the degree of inequality based on the Lorenz curve.

What is ascription?

assigning roles or social status based on traits beyond an individual’s control, like family background, race, or social class at birth.

What characterizes an ascriptive society?

values inherited traits for social roles, with limited social mobility and status largely fixed at birth

What is achievement?

refers to attaining roles, recognition, or rewards based on personal abilities, education, skills, and accomplishments.

What is a meritocratic society?

structured around the idea that people succeed based on merit—often measured through education, skill, and hard work. In such societies, social mobility is possible, as individuals can advance regardless of their background

What is ontological equality?

the belief that everyone is created equal, with a goal of ensuring equal respect and status within the culture.

The main goal is equal respect and status within the culture.

What is equality of condition?

ensuring everyone starts from the same place, or a "level playing field," to promote fairness.

Goals include increasing diversity and implementing affirmative action.

What is equality of opportunity?

means inequality is acceptable as long as everyone has the same opportunities for advancement and is judged by the same standards.

Which type of equality aligns most closely with modern capitalist society?

Equality of opportunity

What is equality?

the provision of equal access to resources and opportunities, ensuring everyone receives the same thing, regardless of their background or needs.

What is equity?

the provision of personalized resources needed for individuals to reach common goals, with supports tailored to each person's needs while maintaining the same goals and expectations for all.

What is inequality?

refers to the uneven distribution of resources, opportunities, and outcomes across groups, characterized by vertical differences and variation within a population based on specific criteria.

What are the three tightly coupled concepts?

Inequality, segregation, diversity

• diversity indicates mostly variety or quantity of groups in population

• inequality and segregation indicate precise differences among groups

GGC: Great Gatsby Curve

Shows the relationship between economic inequality and intergenerational mobility.

• High inequality (e.g., U.S.) correlates with low mobility,

• low inequality (e.g., Denmark) supports high mobility.

  • Suggests policies addressing inequality can enhance fairness and opportunity.

What is segregation?

the uneven distribution of groups across separate places, occupations, or institutions, indicating horizontal differences between populations in specific areas, such as the educational system or labor market.

How is diversity defined?

indicates the variety or quantity of different groups within a population, without necessarily implying equality or segregation among them.

What is an advantage of the Gini coefficient?

it’s suitable for comparing inequality across different historical periods or countries, providing a single numerical value for analysis.

What is a disadvantage of the Gini coefficient?

does not show the shape of inequality; different distributions can yield the same Gini coefficient, obscuring the specifics of inequality.

What is an advantage of the Lorenz curve?

it illustrates the shape of inequality, allowing for differentiation among various types of inequalities and how they manifest in a population.

What is a disadvantage of the Lorenz curve?

it is not well-suited for large-scale comparisons; multiple curves can create confusion and make interpretation difficult.

What does the share of income indicate?

the share of income refers to the distribution of income among different segments of the population, such as the top 10%, 1%, 0.1%, and 0.01%.

What is the 20:20 ratio?

The 20:20 ratio compares the income of the top 20% of the population to that of the bottom 20%, reflecting income inequality (e.g., SE=4, UK=7, US=8).

What is the Robin Hood index?

measures income inequality by calculating the proportion of total income that would need to be redistributed from the rich to the poor to achieve equality.

What is the Atkinson index?

index assesses income inequality, taking into account the societal aversion to inequality; it can be adjusted to reflect different degrees of sensitivity to income disparities.

What does Theil's entropy measure assess?

measure quantifies income inequality by analyzing the distribution of income within a population, capturing variations across subgroups.

What is the Palma ratio?

compares the income share of the top 10% of earners to that of the bottom 40%, highlighting disparities in wealth distribution.

Retrospective vs. Prospective Measurement

Looks at past generations or historical data to measure changes in social status over time (e.g., comparing a child’s status to their parents').

Predicts future mobility based on current conditions, such as education or economic opportunities.

Structural Social Mobility vs. Net Social Mobility:

Mobility caused by societal changes (e.g., new industries, automation, economic growth) rather than individual effort.

Mobility resulting from individual actions or changes (e.g., education, hard work) after accounting for structural effects.

Absolute vs. Relative Social Mobility:

Focuses on whether people are better or worse off than previous generations in absolute terms(e.g., higher income, better living standards).

Examines an individual’s change in rank or position within the social hierarchy compared to others.

Percent/Proportions vs. Odds Ratios

Shows the share of individuals who experience upward or downward mobility (e.g., "30% moved up").

Compares the likelihood of mobility between groups (e.g., "Children of professionals are 3x more likely to stay in higher-status jobs than children of laborers").

DI, D, or Δ (Index of Dissimilarity)

measures the level of segregation by comparing the relative distributions of two groups (e.g., genders) across categories of a variable (e.g., study fields). It shows the proportion of one group that would need to switch categories to achieve an equal distribution.

Transforming Occupations into Measurable Variables

Nominal occupation categories are converted into ordinal (ranked) or continuous (scaled) variables to make them useful for sociological research. The process uses the International Standard Classification of Occupations (ISCO) as a framework.

International Standard Classification of Occupations (ISCO)

Classify jobs and occupations into standardized categories based on the tasks and duties performed. Its purposer is make global comparisons of occupations easie and to help analyze labour market trends like employment, wages, and socio-economic inequalities.

How does International Standard Classification of Occupations (ISCO) Work?

1. Hierarchy of Categories: organizes jobs into major groups, sub-groups, and further detailed levels. (Major group: Health professionals ,Sub-group: Medical doctors,Detailed: General practitioners, surgeons, etc.)

2. Classification Criteria:
   Jobs are grouped based on:

   • Skill level: The amount of education, training, or experience needed.

   • Skill specialization: The type of knowledge or tools required.

Categorical Approach to Occupation Stratification

Class Approach : Groups occupations into broad social classes based on shared traits.

Key Features:

1. Limited Categories:Small number of distinct social classes (e.g., working class, middle class).

2. External Heterogeneity:Members of different classes differ (e.g., income, job security).

3. Internal Homogeneity:Members within the same class are similar (e.g., working conditions, contract types).

4. Empirical Testing:Categories tested using real-world data:

   • • Conditions: Income, vacation time, contract type.

     • Opportunities: Promotions, financial bonuses, mobility chances.

Continuous Approach to Occupation Stratification

Organizes occupations along a hierarchical, continuous scale instead of broad categories.

1. Hierarchical Approach:Ranks occupations on a single scale (e.g., income, education, skill requirements).

2. Unlimited Distinctions:Allows fine-grained distinctions, capturing subtle differences between occupations.

3. Single-Dimension Representation: Differences represented by one parameter (e.g., score or index).

4. Indexes vs. Prestige Scales:

   • Prestige scales: Based on public perception.

   • Indexes (e.g., ISEI): Focus on measurable factors like education and income.

Karl Marx (1818–1883) German philosopher, economist, and sociologist.

argued that modern society is divided into two main classes: the bourgeoisie and the proletariat. The bourgeoisie owns the means of production, while the proletariat only owns their labor power. Marx believed that class antagonism exists between these two groups, with conflict arising from the capitalist system. He defined social classes based on their relationship to production, emphasizing the structural specification of classes as determined by who controls the means of production.

Max Weber (1864–1920) German sociologist, philosopher, and political economist.

focused on class position as being defined by one’s labor market position, with emphasis on jobs. Unlike Marx, he recognized that there are many classes and that cultural behavior plays a role in defining social classes. His theory highlights that social class is not just determined by economic factors but is also shaped by cultural specifications such as lifestyle, values, and social behaviors.

-EGP and ESeC => ESeG

The most popular social class empirical indications today

The European Socio-economic Classification (ESeC)

is a statistical tool used to understand and analyze social structures and socioeconomic inequalities across the European Union (EU). It was developed in 2006 by Eurostat with the help of a consortium of academics from six EU countries. The ESeC provides a framework for classifying individuals into different social classes based on their occupation and socio-economic characteristics.

what are the four main distinctions in the ESEC

Employers, Self-Employed, Employees, The Excluded

Employers (ESEC)

These are individuals who buy the labor of others and have some degree of authority and control over them.

• Large: Employers with substantial enterprises.

• Small: Employers with smaller businesses.

• Professional: Employers in professional sectors (e.g., lawyers, doctors).

• Non-Professional: Employers in non-professional sectors (e.g., small business owners, retail managers).

Self - Employed (ESEC)

Individuals neither buy labor nor sell their labor to an employer. They operate independently.

• Professional (free lancers, consultants)

• NOn-Professional ( artisans)

Employees (ESEC)

sell their labor and place themselves under the authority of their employer. They are part of an employment relationship where their work is governed by a contract

• Employees are classified based on how they are regulated by employers through employment contracts. This can affect their labor market situation and work conditions.

The Excluded (ESEC)

This group refers to individuals who are excluded from the employment relationship for various reasons, including:

• They have never worked involuntarily (e.g., unable to find work).

• They are long-term unemployed (e.g., sick, disabled, retired, on maternity leave, students, or temporarily out of work).
  These individuals are often considered outside the typical employment system, facing barriers to entering or re-entering the labor market.

what information do you need for empirical identification of ESeC position?

1.Occupation

2.Employment status

3.Size of organization (mainly for employers)

•Each combination of occupation, employment status and size of the organization is then assigned it

What is the Standard International Occupational Prestige Scale (SIOPS)?

a system developed by Donald J. Treiman in 1977 to rate the social prestige of occupations based on evaluations from 60 countries. It averages the opinions of people or experts on how desirable or valued certain jobs are. Occupations are ranked using ISCO codes and assigned prestige ratings based on general desirability.

Work

carrying out of tasks that require the expenditure of mental and physical effort - production of goods and services

occupation

a type of work that is done in exchange for a regular wage or salary

Labour market

the place where employers and employees interact with each other.

Economy

institutions that provide for the production and distribution of goods and services

Paid work

• any activity or labor that individuals perform in exchange for wages or salaries

• jobs in the formal economy where people are hired and compensated for their efforts.

What sociological factors are associated with employment?

• Formal Employment: Official, regulated jobs with security and benefits.

• Economic Exchange: Labor traded for money or goods.

• Social Status and Identity: Jobs define social standing and personal identity.

• Gender and Class: Employment is influenced by gender roles and socio-economic class.

Unpaid work

activities that contribute to society or the economy but are not compensated with wages. This includes work such as caregiving, volunteering, and household chores.

The informal economy

includes transactions and labor that take place outside regular, official employment structures, and much of this work is unpaid, such as care provided within the family or community.

Types of informal economy (unpaid work)

Domestic and Care Work: Tasks related to household management and caring for family members, often unpaid, such as cleaning, cooking, and child or elder care.

Volunteer Work: Work done for the community or a cause without monetary compensation, including charity work or roles in non-profit organizations.

Reproductive Labour: Unpaid work related to reproducing and maintaining the labor force, such as childbirth, caregiving, and homemaking.

Invisible Work: Work that is essential but often overlooked or undervalued, such as behind-the-scenes tasks or emotional labor that support others but are not formally recognized or paid.

As women historically are more likely to engage in unpaid deomestic labout what are the sociagicall implications of it

• Value of Work: Unpaid domestic labor, mostly done by women, is essential but undervalued in economic systems, reflecting societal biases that prioritize paid work over caregiving.

• Economic Dependency: Women’s traditional focus on domestic roles often leads to economic dependency on male partners, limiting their financial independence due to lower participation in paid labor.

• Feminist Perspectives: Feminists advocate for gender equality in both paid and unpaid labor, promoting the redistribution of domestic work, addressing the gender pay gap, and challenging cultural norms that restrict women’s economic opportunities.

• What is the Information Age?

• How does it affect worker loyalty, job mobility, and self-efficacy?

A period where information and technology play a central role in society and the economy.

• Workers and Loyalty: Workers are less loyal to employers due to better access to information, job mobility, and career growth opportunities. Many are headhunted by other companies.

• Job Mobility vs. Occupation Stability: Workers change companies frequently but often stay within the same occupation, maintaining career stability.

• Self-Efficacy: Belief in one’s ability to succeed. It boosts career mobility and job satisfaction, as confident workers embrace challenges and new opportunities.

How has the meaning of retirement changed?

—>What factors influence the transition to retirement?

• Retirement is no longer a fixed point but a flexible process, often involving part-time work or gradual transitions.

• Variability in Transition: The age and pace of retirement vary widely, with some retiring earlier or later than planned, and some reducing work hours over time.

• Uncertainty: Retirement is uncertain for many due to financial limitations, health issues, or external factors like economic conditions.

• Not Always an Individual Decision: External influences such as company policies, family needs, and economic pressures can impact when and how a person retires.

What are the driving forces of economical and labour market development?

Capitalism  Industrialism  Technology  Globalization

Internal Labor Market:

This refers to the workers within an organization. It represents the employees that are already working there, forming the "internal supply" of labor. For example, when a company fills a position by promoting or transferring an existing employee, it's using the internal labor market.

Factors that shape it: Company size, employee skills, organization culture, labor relations and organizational structure

External Labor Market

This refers to the available workers outside the organization. It represents the "external supply" of labor, which includes job seekers from other companies or industries. When a company hires someone new from outside the organization, it's using the external labor market.

factors that shape it: industry sector, economic conditions, geograhic location, eductaion and training,