Rise of Income Inequality in the U.S.

Social class

A set of individuals who share a common position within the unequal distribution of economic resources.

Life-chances

An individual's likelihood of obtaining desired goods, services, living conditions, or life experiences.

Intragenerational mobility

Extent to which people move into different economic positions during their own lifetimes.

Indirect

Investment in education, involvement in family business, etc.

The economy

The way goods and services are produced and distributed within a society.

Wealth

Total value of property possessed by a person or group.

Minimum wage

The lowest amount a worker can be paid per hour by law.

Mobility

Extent to which people move between or change economic positions.

Absolute mobility

Mobility measured in terms of absolute values, such as annual income adjusted for inflation.

Relative mobility

Mobility measured in terms of rank, relative to the position of other people, such as income quintile.

Capital Income

Profits, dividends, and interest not earned on a salary.

Labor Income

Income earned from a job, not investments.

Human capital theory

Skills learned in college that increase employability.

Credentialism

The value of certain credentials in controlling access to opportunities.

Social capital

The value of an individual's social network in accessing economic opportunities.

State

An organization maintaining authority over a territory through the threat and use of violence.

Power

The probability of an actor carrying out their will despite resistance by others.

Political power

Power over the state and its laws and policies.

Representative democracy

A state where rulers are chosen by and responsive to citizens.

Capital

Wealth used to produce more wealth.

For-profit corporations

Organizations existing to make a profit for their owners.

Economic inequality

Unequal distribution of economic resources and circumstances between individuals or groups.

Income

Total amount of money received by a person or group within a specific time period.

Wage compression

Difference in wages between people at the bottom and top of an organization.

Economic globalization

Increasing movement of commodities and capital across country borders.

Top decile

The top 10% of people in the distribution of income or wealth.

Top centile

The top 1% of people in the distribution of income or wealth.

Progressive income taxation

A system where the tax rate for high-income individuals is higher than for low-income individuals.

Capitalist

Individuals with capital.

Wage-laborers

Individuals without capital who sell their labor to live.

Class origin

The class position of the family/household that the individual grew up in.

Work-place authority

The individuals who give and take orders in a workplace.

Intergenerational mobility

Extent to which people move into different economic positions from their parents.

Intergenerational downward mobility

Ending up in a lower economic position than one's parents.

Direct

Gifts and inheritances.

Screening theory

Employers relying on college admission process to identify competent individuals.

Cultural capital

Valuable skills and knowledge acquired in college, including soft skills.