CH-9-10 Stratification and Social Mobility in the United States – Sociology : Chapter Notes

This Document Contains Chapters 9 to 10 CHAPTER 9 STRATIFICATION AND SOCIAL MOBILITY IN THE UNITED STATES CHAPTER OUTLINE SYSTEMS OF STRATIFICATION Slavery Castes Estates Social Classes SOCIOLOGICAL PERSPECTIVES ON STRATIFICATION Karl Marx’s view of Class Differentiation Max Weber’s View of Stratification Interactionist View IS STRATIFICATION UNIVERSAL? Functionalist View Conflict View Lenski’s Viewpoint STRATIFICATION BY SOCIAL CLASS Objective Method of Measuring Social Class Gender and Occupational Prestige Multiple Measures INCOME AND WEALTH POVERTY Studying Poverty Who Are the Poor? Feminization of Poverty The Underclass Explaining Poverty LIFE CHANCES SOCIAL MOBILITY Open versus Closed Stratification Systems Types of Social Mobility Social Mobility in the United States SOCIAL POLICY AND STRATIFICATION: EXECUTIVE COMPENSATION Boxes Taking Sociology to Work: Jessica Houston Su, Research Assistant, Joblessness and Urban Poverty Research Program Trend Spotting Box: Women as Wage Earners Research Today: Precarious Work Sociology on Campus: Social Class and Financial Aid LEARNING OBJECTIVES WHAT’S NEW IN CHAPTER 9 1. Describe the various systems of stratification. 2. Discuss the various sociological perspectives on stratification. 3. Identify the methods used to measure stratification. 4. Discuss the distribution of wealth and income. 5. Discuss poverty trends in the United States as well as issues surrounding the study of poverty. 6. Discuss the relationship between stratification and life chances. 7. Define social mobility and identify the various types of social mobility. 8. Discuss the impact of various social factors on social mobility. • Chapter-opening excerpt from Is It Now a Crime to Be Poor by Barbara Ehrenreich. • Discussion of human trafficking in the subsection on slavery, with table, “Human Trafficking Report” • Key term treatment of “conspicuous consumption” • Expanded discussion of income inequality in the United States, with figure, “Mean Household Income by Quintile” • Trend Spotting Box, “Women as Wage Earners” • Discussion of the effect of the recent economic recession • Discussion of the federal government’s new Supplemental Poverty Measure • Discussion of the underclass • Discussion of the earnings of young men relative to the earnings of their fathers • Discussion of the cost of attending community college in Sociology on Campus Box, “Social Class and Financial Aid” • Social Policy section, “Executive Compensation” CHAPTER SUMMARY The term social inequality describes a condition in which members of a society have different amounts of wealth, prestige, or power. When a system of social inequality is based on a hierarchy of groups, sociologists refer to it as stratification. This is a structured ranking of entire groups of people, which perpetuates unequal economic rewards and levels of power in a society. To help understand stratification systems, one must discern between ascribed and achieved statuses. An ascribed status is a social position assigned to a person without regard for that person’s unique characteristics or talents. Race, gender, and ethnicity are examples of ascribed statuses. An achieved status is a social position attained by a person largely through his or her own efforts, such as becoming a corporate executive or graduating from college. The most extreme form of legalized social inequality is slavery. Castes are hereditary systems of social inequality. They are usually religiously dictated. The estate system, also known as feudalism, was a stratification system in which peasants were required to work the land of a noble in exchange for military protection and other services. A class system is a social ranking based primarily on economic position. Some sociologists have suggested that only 1 to 2 percent of the people in the United States are in the upper class, whereas the lower class consists of approximately 20 to 25 percent of the population. The lower class is disproportionately composed of Blacks, Hispanics, single mothers, and people with low-paying jobs. Karl Marx viewed class differentiation as the crucial determinant of social, economic, and political inequality. Marx focused on the two classes that emerged as the estate system declined: the bourgeoisie and the proletariat. The bourgeoisie is the capitalist class that owns and controls the means of production, and the proletariat comprises working-class people who are exploited by the capitalist class. Unlike Marx, Max Weber insisted that no single characteristic totally defines a person’s social position. Weber identified three components of stratification: class, status, and power. Interactionists are interested in how class shapes a person’s lifestyle at the microlevel. Thorsten Veblen introduced the concept of conspicuous consumption to describe how the well-off convert some of their income into extravagant consumer goods. The functionalist view of stratification suggests that society must distribute its members among a variety of social positions. Social stratification is deemed necessary so that people will be motivated to fill functionally important positions. Contemporary conflict theorists believe that human beings are prone to conflict over scarce resources such as wealth, status, and power. Conflict theorists argue that stratification will inevitably lead to instability and social change. By all measures, income in the United States is unevenly distributed. In 2005, the top 20 percent of the population received incomes of $91,705 or more, compared to the bottom 20 percent who received just $19,178 or less. The income gap between the richest and poorest groups in the United States is widening. Approximately one out of every nine people in the United States lives below the poverty line. Women and other minority groups are overrepresented in the lower income groups and underrepresented at the top. Absolute poverty refers to a minimum level of subsistence that no family should be expected to live below. Relative poverty is a floating standard of deprivation by which people at the bottom of a society are judged to be disadvantaged in comparison with the nation as a whole. Some sociologists have used the term underclass to describe long-term poor people who lack training and skills. Social mobility is the movement of individuals or groups from one position in a society’s stratification system to another. In an open system, the position of each person is influenced by his or her achieved status. In a closed system, there is little or no possibility of individual social mobility. The belief in upward social mobility is an important aspect of U.S. society. Vertical mobility can be both upwards and downwards. Occupational mobility such as intergenerational or intragenerational has been common among White males. Education, gender, and race are important factors in one’s upward mobility. RESOURCE INTEGRATOR Focus Questions Resources 1. What are the major systems of stratification? IN THE TEXT Key Terms: social inequality, stratification, income, wealth, ascribed status, achieved status, slavery, castes, estate system, class system Box: Taking Sociology to Work “Jessica Houston Su: Research Assistant, Joblessness and Urban Poverty Research” Visual Support: Figure 9-1 “Mapping Life Worldwide, The 50 States: Contrasts in Income and Poverty Levels”; Table 9-1, “Human Trafficking Report”; Photo of lavish lifestyle; Cartoon of social class; Photo of house and dollar sign IN THE INSTRUCTOR’S MANUAL Additional Lecture Ideas: 9-1 Classroom Discussion Topics: 9-1, 9-8, 9-9, 9-10 Topics and Sources for Student Research: Elite; Role of Class; Segregation Video Resources: Caste at Birth; Social Stratification 2. How do Marx, Weber, functionalists, conflict theorists, and interactionists view stratification? IN THE TEXT Key Terms: capitalism, bourgeoisie, proletariat, class consciousness, false consciousness, class, status group, power, conspicuous consumption, dominant ideology Visual Support: Photo of coal miners in West Virginia; Photo of wealthy golfer - conspicuous consumption; Photo of truck driver; Table 9-2 “Sociological Perspectives on Social Stratification” IN THE INSTRUCTOR’S MANUAL Additional Lecture Ideas: 9-2 Classroom Discussion Topics: 9-3; 9-4 Topics and Sources for Student Research: Wealth Inequality; Low-Wage Workers; Welfare Reform; Rent; Segregation Video Resources: Affirmative Action; Caste at Birth; Class Photo; Social Class REEL SOCIETY CD Topic Index: Social Inequality 3. How is social class measured? IN THE TEXT Key Terms: objective method, prestige, esteem, socioeconomic status (SES) Visual Support: Table 9-3 “Prestige Rankings of Occupations”; Figure 9-2 “Mean Household Income by Quintile” IN THE INSTRUCTOR’S MANUAL Additional Lecture Ideas: 9-3 Classroom Discussion Topics: 9-8 Topics and Sources for Student Research: Lorenz Curve; Wealth Inequality Video Resources: People Like Us; Social Class 4. What are the issues and controversies surrounding the study of poverty? IN THE TEXT Key Terms: absolute poverty, relative poverty, feminization of poverty, underclass Boxes: Trend Spotting: Women as Wage Earners; Research Today: “Precarious Work” Visual Support: Photo of woman working in call center; Figure 9-3 “Distribution of Wealth in the US”; Figure 9-4 “Poverty in Selected Countries”; Table 9-4 “Who Are the Poor in the United States”; Photo of flooded areas after Hurricane Katrina IN THE INSTRUCTOR’S MANUAL Additional Lecture Ideas: 9-5, 9-6 Classroom Discussion Topics: 9-6; 9-7; 9-11; 9-12 Topics and Sources for Student Research: Low-Wage Workers; Welfare Reform; Rent Video Resources: Class Photo; Stuck on Welfare; To Be Old, Black, and Poor REEL SOCIETY CD Topic Index: Poverty LECTURE LAUNCHER NBC NEWS VIDEO CLIPS Volume 2: Barbara Ehrenreich Discusses Her Book Nickel and Dimed 5. What are the key factors in life chances and social mobility? IN THE TEXT Key Terms: life chances, social mobility, open system, closed system, horizontal mobility, vertical mobility, intergenerational mobility, intragenerational mobility Box: Sociology on Campus: “Social Class and Financial Aid” Visual Support: Figure 9-5 “Intergenerational Income Mobility”; Photo of lawyer; Photo of Andrea Jung IN THE INSTRUCTOR’S MANUAL Classroom Discussion Topics: 9-13, 9-14 Topics and Sources for Student Research: Divorce and Social Mobility REEL SOCIETY CD Topic Index: Social Mobility LECTURE OUTLINE Introduction • Social inequality describes a condition in which members of a society have different amounts of wealth, prestige, or power. • Stratification is a structured ranking of entire groups of people that perpetuates unequal economic rewards and power in a society. • Income refers to salaries and wages. • Wealth is an inclusive term encompassing all of a person’s material assets, including land, stocks, and other types of property. • To better understand these systems, it is helpful to review the distinction between achieved status and ascribed status. Achieved statuses are those positions which are attained largely through one’s efforts or actions. Examples: Becoming a teacher; being a college student; winning the lottery. On the other hand, ascribed statuses are assigned to individuals without regard to achievement or efforts. Ascribed statuses are often assigned at birth. Therefore, they are said to be involuntary. Examples: Race; biological sex. I. Understanding Stratification A. Systems of Stratification • Ascribed status is a social position assigned to a person by society without regard for that person’s unique talents or characteristics. • Achieved status is a social position attained by a person largely through his or her own efforts. 1. Slavery • A system of enforced servitude in which enslaved individuals are owned by other people, who treat them as property. • Slaves in Ancient Greece were captives of war or piracy, but their status was not necessarily permanent or passed on to the next generation. In the U.S., slavery was an ascribed status, and racial and legal barriers prevented their being freed. 2. Castes • Hereditary system of rank usually religiously dictated. Example: four major castes, or varnas, in India. • Urbanization and technological advancement have brought more change to India’s caste system in the past two decades than the government was able to effect since formally outlawing the practice in 1950. 3. Estates • Also known as feudalism. • In the estate system, peasants worked land leased to them by nobles in exchange for military protection or other services. 4. Social Classes • A social ranking based primarily on economic position in which achieved status can affect or influence social mobility. • One can move from one stratum to another. • Income inequality is a basic characteristic of a class system. Example: Daniel Rossides’s five-class model of the class system in the U.S. • Social class is one of the variables most frequently used by sociologists. B. Perspectives on Stratification • Karl Marx viewed class differentiation as the crucial determinant of social, economic, and political inequality. Max Weber was critical of Marx’s emphasis on economic factors, and argued that stratification had many dimensions. 1. Karl Marx’s View of Class Differentiation • Differential access to scarce resources shapes the relationship between groups. Controlling the primary mode of economic production is key. • Capitalism is an economic system in which the means of production are largely privately held; profit is the major incentive for economic activity. • Bourgeoisie—the capitalist class—owns the factories and machinery and controls most production. • Proletariat—the working class—whose members are exploited by the capitalist bourgeoisie. • Marx predicted the exploited proletariat would eventually revolt and destroy the capitalist system. They would need to develop class consciousness (a subjective awareness of their plight and of the need for collective action to effect change). Often, this meant overcoming false consciousness (an attitude held by members of a class that does not accurately reflect its objective position). • Marx failed to anticipate the emergence of labor unions and did not foresee individual workers striving for improvement within free societies offering substantial mobility. 2. Max Weber’s View of Stratification • Identified three distinct components of stratification: class, status, and power. • Weber argued that the actions of individuals and groups could not be understood solely in economic terms. • Individuals gain status through membership in a desirable group (status group). • Power is the ability to exercise one’s will over others. • Each of us has not one rank in society, but three, in which each rank influences the other two. Example: John F. Kennedy. 3. Interactionist View • Interactionists want to understand how social class influences a person’s lifestyle. • Thorsten Veblen’s concepts of conspicuous consumption and conspicuous leisure can still be applied to the behavior of wealthy people today. C. Is Stratification Universal? • Inequality exists in all societies. 1. Functionalist View • A differential system of rewards and punishments is needed for society to operate efficiently. • Society must distribute its members among a variety of social positions (Davis and Moore). Positions are filled with people with the appropriate talents and abilities. • Money and rewards are based on the scarcity of qualified personnel. • Stratification motivates people to fill critical positions. • Functionalists fail to explain the wide disparity between rich and poor. 2. Conflict View • Competition for scarce resources results in significant political, economic, and social inequality. • Contemporary conflict views include conflicts based on gender, race, age, and other dimensions. Example: Ralf Dahrendorf’s work on authority. • Dominant ideology describes a set of cultural beliefs and practices that helps to maintain powerful social, economic, and political interests. • Stratification is a major source of societal tension and conflict, and will inevitably lead to instability and social change. 3. Lenski’s Viewpoint • Economic systems change as the level of technology becomes more complex. • The emergence of surplus resources expands the inequality in status, influence, and power. Allows for a well-defined rigid social class system. II. Stratification by Social Class A. Measuring Social Class 1. Objective Method • Researchers assign individuals to social classes on the basis of criteria such as occupation, education, income, and residence. • Prestige rankings of occupations are commonly used for class position. See Table 9-2. • Esteem refers to the reputation a person has earned within an occupation. • A person may have esteem but lack high levels of prestige. 2. Gender and Occupational Prestige • Difficulty of judging class or status for women in dual-career families. • Continuing undercounting of unpaid labor by women (largely in child care, housework, and agriculture) and its contribution to a family and an entire economy means that virtually all measures of stratification need to be reformed. 3. Multiple Measures • Sociologists use the term socioeconomic status, or SES, when describing class based on income, education, and occupation. • Criteria such as value of homes, sources of income, assets, years in present occupation, neighborhoods, and dual careers have been added to income and education as objective determinants of class. B. Wealth and Income • Income in the United States is distributed unequally. See Figure 8-3. • In 2004, the richest 20 percent earned $88,029 or more; the poorest 20 percent earned $18,500 or less. • Tax policies favor the rich. • Census Bureau reports that income inequality rose substantially from 1967 through the end of the century. • A study in 2006 found that, compared to people in 27 other countries, Americans were less aware of and less concerned about income inequality. • Wealth in the U.S. is much more unevenly divided between rich and poor than income. In 2001, the richest 20 percent held 84.5 percent of the nation’s wealth. See Figure 8-4. C. Poverty • One out of every nine people in the U.S. lives below the poverty line. Example: 37 million in 2004. • A contributing factor is the large number employed at minimum wage. In terms of real value, adjusted for inflation, the minimum wage has often failed to keep pace with the cost of living. See Figure 8-5. 1. Studying Poverty • Absolute poverty refers to a minimum level of subsistence that no family should be expected to live below. • Poverty line serves as an official indicator of which people are poor. • In 2006, a family of four with a combined income of $20,444 or less fell below the poverty line. • Relative poverty is a floating standard of deprivation by which people are judged to be disadvantaged when compared to the nation as a whole. • Even if today’s poor are better off in absolute terms than the poor of the 1930s or 1960s, they are still seen as deserving special assistance. 2. Who Are the Poor? • Many of the poor live in urban slums, but the majority live outside these poverty areas. • Since World War II, an increasing number of poor people have been women. • By 2006, families with female householders accounted for 53 percent of the nation’s poor. See Table 8-3. • In 2005, 28 percent of U.S. households headed by single mothers lived in poverty, compared to 12.6 percent of married couples. • The feminization of poverty is not just a U.S. phenomenon, but a worldwide one. • William Julius Wilson describes the long-term poor as the underclass who lack training and skills. • In central cities, about 49 percent of the underclass are African American, 29 percent are Hispanic, 17 percent are White, and 5 percent are of other classifications. • The overall composition of the poor changes continuously, as some move above the poverty line and others slip below it. African Americans and Latinos are more likely than Whites to be persistently poor. • African Americans and Hispanics are less likely than Whites to leave the welfare rolls. 3. Explaining Poverty • Using the functionalist analysis, Herbert Gans suggests that the presence of poor people serves a number of social, economic, and political functions. D. Life Chances • Max Weber saw class as related to life chances. Poor people spend more limited resources on the necessities of life. • In times of danger, the affluent and powerful have a better chance of surviving. Example: the Titanic tragedy. • Class position affects people’s vulnerability to natural disasters. Example: Hurricane Katrina’s impact on the poor of New Orleans. • The digital divide: Many poor are not linked to the Internet. III. Social Mobility • Refers to the movement of individuals or groups from one position of a society’s stratification system to another. A. Open versus Closed Stratification Systems • Open systems encourage competition and imply that a person’s position is influenced by achieved status. • Closed systems, such as slavery or caste systems, allow little or no possibility of moving up. Social placement is based on ascribed status. 1. Types of Social Mobility • Horizontal mobility refers to a person moving from one social position to another of the same rank. • Vertical mobility is the movement from one social position to another of different rank. Can be upward or downward. • Intergenerational mobility involves changes in social position relative to one’s parents. Example: film star whose parents were factory workers. • Intragenerational mobility involves social changes within one’s adult life. Example: teacher’s aide becoming a superintendent. B. Social Mobility in the United States 1. Occupational Mobility • More common among males than females. Sixty to 70 percent of sons are employed in higher-ranked occupations than their fathers. • Most mobility covers a very short distance. 2. The Impact of Education • Education has a greater impact than family background (although, family background influences the likelihood that one will receive a higher education). • Three-fourths of college-educated men achieved some upward mobility. • B.A./B.S. degrees serve less as a guarantee of upward mobility than in the past, because more people have them. 3. The Impact of Race and Ethnicity • Black men with good jobs are less likely than White men to see their children attain the same status. • Black children are less likely to receive financial support from parents. • Downward mobility is significantly higher for Blacks than for Whites. • The typical Hispanic has less than 10 percent of the wealth that a White person has. Continuing immigration accounts for part of the disparity, as most new arrivals are very poor. 4. The Impact of Gender • Women are more likely to withdraw from the labor force if their job skills exceed the jobs offered them. • Large range of clerical occupations open to women offer modest salaries and little chance to advance. • Women find it harder to secure financing to start self-employment ventures than men do. • Women are unlikely to move into their father’s positions. IV. Social Policy and Stratification: Executive Compensation A. The Issue • There has been considerable coverage and concern over the compensation received by top executives in the private sector. B. The Setting •Although executive pay has always been high in the United States, in recent years it has increased dramatically. The corporate executives who head private companies now earn the highest incomes in the nation. In 1965, top executives earned only 24 times the average worker’s pay. By 1980, the gap had widened to 40 times the average paycheck and by 2009, to 300 times the average. C. Sociological Insights • From a functionalist perspective, significant compensation is reasonable given the potential for gain that a talented executive brings to the corporation and to society at large. • From a conflict perspective, however, these enormously inflated salaries perpetuate social inequality. Furthermore, they are often determined by board members, who have an interest in protecting high salaries and thus, avoiding conflicts with executives. • Finally, from a symbolic interactionist point of view, while not interacting directly, executives working within similar industries do form a social network. Thus, corporations must now report executive’s compensation levels relative to their peer group’s compensation. D. Policy Initiatives • Before 1992, corporations were required to report executives’ pay. However, many did so in a manner which was disguised or especially difficult for the average person to read or understand. • Today, the law mandates that companies publish “summary compensation tables.” • In 2006, reporting requirements were expanded to include retirement packages, including the “golden parachute” clauses that protect executives who bail out of failing companies. • In 2009, the White House appointed a Treasury Department official, known as the “pay czar,” to look into executive compensation levels. KEY TERMS Absolute poverty A minimum level of subsistence below which no family should be expected to live. Achieved status A social position that a person attains largely through his or her own efforts. Ascribed status A social position that is assigned to a person by society without regard for the person’s unique talents or characteristics. Bourgeoisie Karl Marx’s term for the capitalist class, comprising the owners of the means of production. Capitalism An economic system in which the means of production are held largely in private hands and the main incentive for economic activity is the accumulation of profits. Caste A hereditary rank, usually religiously dictated, that tends to be fixed and immobile. Class A group of people who have a similar level of wealth and income. Class consciousness In Karl Marx’s view, a subjective awareness held by members of a class regarding their common vested interests and need for collective political action to bring about social change. Class system A social ranking based primarily on economic position in which achieved characteristics can influence social mobility. Closed system A social system in which there is little or no possibility of individual social mobility. Corporate welfare Tax breaks, direct payments, and grants that the government makes to corporations. Digital divide The relative lack of access to the latest technologies among low-income groups, racial and ethnic minorities, rural residents, and the citizens of developing countries. Dominant ideology A set of cultural beliefs and practices that help to maintain powerful social, economic, and political interests. Estate system A system of stratification under which peasants were required to work land leased to them by nobles in exchange for military protection and other services. Also known as feudalism. Esteem The reputation that a particular individual has earned within an occupation. False consciousness A term used by Karl Marx to describe an attitude held by members of a class that does not accurately reflect their objective position. Feminization of poverty A trend in which women constitute an increasing proportion of the poor people of the United States. Horizontal mobility The movement of an individual from one social position to another of the same rank. Income Salaries and wages. Intergenerational mobility Changes in the social position of children relative to their parents. Intragenerational mobility Changes in a person’s social position within his or her adult life. Life chances The opportunities people have to provide themselves with material goods, positive living conditions, and favorable life experiences. Objective method A technique for measuring social class that assigns individuals to classes on the basis of criteria such as occupation, education, income, and place of residence. Open system A social system in which the position of each individual is influenced by his or her achieved status. Power The ability to exercise one’s will over others. Prestige The respect and admiration that an occupation holds in a society. Precarious work Employment that is poorly paid, and from the worker’s perspective, insecure and unprotected. Proletariat Karl Marx’s term for the working class in a capitalist society. Relative poverty A floating standard of deprivation by which people at the bottom of a society, whatever their lifestyles, are judged to be disadvantaged in comparison with the nation as a whole. Slavery A system of enforced servitude in which some people are owned by other people. Social inequality A condition in which members of a society have different amounts of wealth, prestige, or power. Social mobility Movement of individuals or groups from one position of a society’s stratification system to another. Socioeconomic status (SES) a measure of social class that is based on income, education, and occupation. Status group People who have the same prestige or lifestyle, independent of their class positions. Stratification A structured ranking of entire groups of people that perpetuates unequal economic rewards and power in a society. Underclass The long-term poor people who lack training and skills. Vertical mobility The movement of a person from one social position to another of a different rank. Wealth An inclusive term encompassing all of a person’s material assets, including land, stocks, and other types of property. ADDITIONAL LECTURE IDEAS 9-1: Status Inconsistency—Janitors and Tenants Sociologist Ray Gold interviewed apartment building janitors in Chicago. Since these janitors are unionized, they have relatively good wages and are eligible for rent-free apartments. But like people in most occupations, janitors have an image, in this case, unfavorable. They are viewed by tenants and the public as ignorant, lazy, and dirty. In addition, it is assumed that anyone, even if he or she has failed at everything else, can be a janitor. These stereotypes are reinforced by the menial tasks performed by janitors (such as emptying the garbage), the dirty clothes they wear, and the fact that many of them are foreign-born. These stereotypes make the janitor’s job difficult, since social relationships with the tenants are important. While making efforts to establish good relations with the tenants, janitors are well aware that their jobs are held in low esteem. Even people who are viewed as “good tenants” maintain a social distance from janitors. The janitors in Gold’s study commented on the jealousy expressed by tenants whenever janitors tried to better themselves. A raise in pay, a new automobile, or new furnishings in the janitor’s apartment lead to unkind remarks and sarcasm. And live-in janitors are never able to get away from these attitudes, since the building is their home. Professional ethics are something we associate with lawyers and psychiatrists, but Gold found that janitors have them as well. They frequently know a tenant’s personal secrets, and they must learn proper procedures for easing gracefully out of delicate situations. Both the professional behavior and the substantial income of janitors contradict tenants’ views of them as servants. But this conceptual conflict remains unresolved: middle-class tenants depend on janitors but do not regard the job as a middle-class occupation. Workshops for janitors and custodians, often held on college campuses, are furthering the janitors’ image of themselves as professionals. Yet there is little indication that tenants’ image of janitors is also improving. See Ray Gold, “Janitors versus Tenants: A Status-Income Dilemma,” American Journal of Sociology 57 (March 1952): 486–493. 9-2: Comparison of Perspectives on Stratification (211) QUESTION FUNCTIONALIST VIEW CONFLICT VIEW LENSKI’S VIEW Is stratification universal? Yes Yes Yes Is stratification necessary? Some level of stratification is necessary to ensure that key social positions are filled. But slavery and caste systems are unnecessary. Stratification is not necessary. In fact, it is a major source of societal tension and conflict. Although stratification has been present in all societies, its nature and extent vary enormously depending on level of economic development. What is the basis for stratification? Societal-held values. Ruling-class values. Both ruling-class and societal-held values. Will there be changes over time in a society’s level of stratification? The degree of stratification may change gradually. The degree of stratification must be reduced so that society will become more equitable. There will be evolutionary changes in the degree of stratification. 9-3: Measuring Social Class: Subjective and Reputational Methods In addition to the objective method of measuring social class, sociologists use two other techniques: the subjective method and the reputational method. The subjective method of measuring social class permits individuals to locate themselves within a system of social ranking. Class is viewed as a social rather than a statistical category. The subjective method assumes that people can identify their membership in a social class just as they would their race, gender, age, or other types of social differentiation. In a sense, this method measures the class consciousness discussed by Karl Marx. Although it is easy to use, the subjective method has several shortcomings. In defining their own social class, people may reveal their aspirations rather than their actual positions; that is, they may respond with a type of false consciousness. For example, many people say they are “middle-class” when in fact their earnings and savings are too low for this classification. In addition, there is a general tendency for Americans to call themselves “middle-class” or “working-class,” perhaps reflecting the importance of equality as a value in our society, and to avoid identifying with the elitist upper class or the disadvantaged lower class. National surveys show that an overwhelming majority of Americans define themselves as middle- or working-class. Thus, the subjective method may convey a false impression that there is little class differentiation in the United States. With the reputational method of measuring social class, class membership depends on the evaluation of selected observers. That is, you will be considered a member of a given social class if others see you that way. Like the subjective method, the reputational method views class as a social category. Sociologists using the reputational method call on a group of “judges,” who are familiar with a community and all its members, to rate the positions of various individuals within the stratification system. W. Lloyd Warner employed this technique in his detailed study of a community he called “Yankee City”; he determined a person’s social class by asking others how the person ranked within the community. (See Warner and Paul S. Lunt. The Status System of a Modern Community. New Haven, CT: Yale University Press, 1942.) Of course, the reputational method is limited to studies of small communities or small groups. 9-4: Understanding Income and Wealth Inequality: A Classroom Exercise Generally, we all recognize that there are very wealthy people and there are very poor people, but how does this recognition translate into everyday life and everyday decision making? The following exercise seems to help us appreciate the level of inequality in our society. Split the class into small groups of five to seven students each and ask them to arrive at a common answer to the question: “How much would you and a date or any couple spend on a nice date?” Usually someone will ask “How ‘nice’?” and the instructor may respond to this query with something like “A nice date means an event for which you have done some planning. It would not be just a spur-of-the-moment outing, but it would also not be a once-a-year type of occasion, like a formal dance, that would require new clothes.” Dividing the class seems to work effectively with even a hundred students. When the groups report back, average the various sums in the responses to get a class average. The result can be used to explore the levels of income inequality in the United States. In 2002, the highest fifth in terms of family money income accounted for 49.7 percent of all aggregate income, and the lowest fifth for 3.5 percent. How does this translate to a night out on the town? If the class average were $200 typically spent, that would create a pool of $1000 by fifths. If the classroom income mirrored society that would mean the top fifth would have 49.7 percent of $1000, or approximately $497 for just one night! The bottom fifth would have to settle on $35. Then ask half the student groups to consider themselves affluent and to describe what their date would be like and the other half to view themselves as relatively poor. The contrasts are immediate: some are going out to dinner and a movie with refreshments afterward while others will rent a video and pop popcorn. We can take this exercise one step further by exploring the greater inequality present in the United States in wealth. In 2001, the wealthiest fifth accounted for 84.5 percent of all wealth, while the poorest fifth were in debt for an amount equivalent to 0.70 percent of the nation’s wealth. While applying wealth distributions to dating spending patterns is not as close a fit as income data, the exercise certainly does show us what real inequality means. In the exercise above, the class figure of $1000 would now translate to $845 for the wealthiest fifth, and $7 for the lowest fifth. (Use a negative figure to account for the wealth debt of this quintile.) Now the “wealth groups” (usually I reverse the roles so that the previously poor are now wealthy) are enjoying fancy dinners followed by more extravagant club hopping. Obviously, the money buys more or less depending on your school’s locale. Meanwhile the impoverished groups are usually dumbfounded on how, as a couple, they can legally earn money for their date without borrowing money. We then talk about the scavenging done by thousands of Americans, which includes looking for aluminum cans and checking pay phones and vending machines for change left behind. Sources for data: Income data are updated annually in the Current Population Reports as well as other government publications. For the 2002 income data, see Income in the United States: 2002. Washington, DC: U.S. Government Printing Office, 2003. Wealth data are estimated less frequently and tend to be reproduced in less accessible locations. The 2001 wealth data are cited in Chapter 9 of the text. 9-5: Income Differences by Gender and Race Recent reports of the Bureau of the Census include an analysis of 2001 income by race and sex, holding education constant. In the accompanying table, the first two data columns compare White and Black persons. The typical White person earns $26,922, compared with $21,098 for a Black American. At every educational level Whites out-earn African Americans. Indeed, Blacks with some college earn only $3,496 more than Whites with only a high school diploma. Note: Figures are median income. Income for males and females includes all persons over 25 years of age. Data for Whites are for White non-Hispanics. MEDIAN INCOME BY RACE AND SEX, HOLDING EDUCATION CONSTANT Race-2001 White Race-2001 Black Ratio Black to White Sex-2001 Male Workers Sex-2001 Female Workers Ratio Women to Men Total $26,922 $21,098 .78 $32,494 $18,548 .57 High School 1–3 years 4 years 12,726 21,652 10,563 18,935 .83 .87 16,965 28,342 9,636 15,664 .57 .55 College No degree BA degree or more 26,749 40,005 25,148 36,323 .95 .94 33,777 49,984 20,100 30,972 .60 .62 Source: U.S. Census Bureau, Educational Attainment in the United States: March 2002 (table 8), available online at http://www.census.gov/population/www/socdemo/education/ppl-169.html. 9-6: Is There a “Culture of Poverty”? Anthropologist Oscar Lewis, in several publications based on research conducted among Mexicans and Puerto Ricans, identified what he called the “culture of poverty.” Lewis believed that poverty has a strong effect on family life and leaves a negative mark that upward mobility may not erase. In other words, the implication of Lewis’s “culture of poverty” is that the poor will continue to exhibit their deviant lifestyle—”living for today,” not planning for the future, having no enduring commitment to marriage, lacking a work ethic, and so forth—even when they move out of the slums. Lewis stressed the inevitability of living out the culture of poverty regardless of later events. See Oscar Lewis. Five Families. New York: Basic Books, 1959; Oscar Lewis. La Vida. New York: Random House, 1965. This argument has been widely employed to justify antipoverty programs designed to bring “middle-class virtues” to the children of the poor. It is also used to discourage giving poor people control over programs aimed at assisting them. To say that Lewis and similar thinkers have touched off a controversy is an understatement. Critics argue that Lewis sought out exotic, pathological behavior. He ignored behavior indicating that even among the poor, most people live conventionally and strive to achieve goals similar to those of the middle class. For example, archeologists at the University of Arizona have monitored trends in food utilization by examining household refuse—an example of unobtrusive measures—and found that low-income households went further than middle class households in choosing less expensive items, and that they wasted even less. William Ryan contends that lack of money is the cause of poor people’s problems and of any discrepancies in behavior; not inherent disabilities or aftereffects of child-rearing practices. It is unfair, according to Ryan, to blame the poor for their lack of money, low educational levels, poor health, and low-paying jobs. See Ryan. Blaming the Victim (rev. ed.). New York: Random House, 1976. In the debate over a culture of poverty, policymakers neglect to make a distinction between culture and subculture. The poor in the United States do not make up a culture unto themselves; they are one segment of the larger American culture. The behavioral patterns of the poor that arise out of their low-income status may constitute a subculture, but poor people still share most of the larger society’s norms and values. Social planners must develop fresh initiatives that recognize these similarities and yet respect the distinctive qualities of the subculture. See Charles A. Valentine. Culture and Poverty: Critique and Counter-Proposals. Chicago: University of Chicago Press, 1968. (218) CLASSROOM DISCUSSION TOPICS 9-1. Stimulating Classroom Discussions about The Working Poor: Invisible in America: Questions for stimulating a classroom discussion about David K. Shipler’s book can include these: Why do you think that Shipler refers to the working poor as “the forgotten America”? How, if at all, should the government be obligated to help the working poor? Shipler notes the working poor “pay more fees and higher interest rates than more secure Americans.” To what is he referring? Shipler argues that Americans blame the poor for their own poverty. Do you agree? If so, is it justified? 9-2. Inequality in Taking Quizzes: For a technique that dramatizes barriers to desire and ability, see Laura Workman Ells, “So Inequality Is Fair? Demonstrating Structured Inequality in the Classroom,” Teaching Sociology 15 (January 1987): 73–75. 9-3 Using Card Games to Explain Stratification: See Mark Abrahamson, “Stratification, Mobility, and Playing Cards Metaphor,” Teaching Sociology 22 (April 1994): 183–188. 9-4 NORC Prestige Rankings: See Technique No. 65 in Edward L. Kain and Robin Neas (eds.). Innovative Techniques for Teaching Sociological Concepts. Washington, DC: American Sociological Association, 1993. 9-5 Teaching U.S. Inequality through Games: Several instructors have written of ways to turn Monopoly into “Sociopoly” as a means of teaching students about U.S. social inequality. See Catherine L. Coghlan and Denise W. Huggins, ““That’s Not Fair!: A Simulation Exercise in Social Stratification and Structural Inequality,” Teaching Sociology 32 (April 2004): 177-187; and Michael M. Jessup, “Sociopoly: Life on the Boardwalk,” Teaching Sociology 29 (January 2001): 102-109. 9-6 Estimating the Poverty Level for a Family: See Technique No. 36 in Edward L. Kain and Robin Neas (eds.). Innovative Techniques for Teaching Sociological Concepts. Washington, DC: American Sociological Association, 1993. 9-7 Poverty and Wealth: William C. Martin at Rice University has developed a clever demonstration: simultaneously showing two films, one about life in a Chicago tenement and the other about life in a middle-class suburb of St. Louis. See Technique No. 66 in Edward L. Kain and Robin Neas, (eds.). Innovative Techniques for Teaching Sociological Concepts. Washington, DC: American Sociological Association, 1993. 9-8 Income Levels: Obtain current data on the following: median family income and the Department of Labor’s cost of living for an urban family of four (subdivided into “austere,” “moderate,” and “some luxury”). If possible, compare these with the median income of the parents of all first-year students and with the income of families of students receiving financial aid assistance. (Most colleges compile these data.) 9-9 Introducing Social Class: The use of family (ethnic) names to show social class is useful. See Robert Thompson, “Introducing Social Class: An Update on a Teaching Technique,” Teaching Sociology 15 (January 1987): 76–79. 9-10 Social Stratification—An Active Learning Technique: This is an active, collaborative, field-based learning experience for teaching basic social stratification concepts. See Lucy McCammon, “Introducing Social Stratification and Inequality: An Active Learning Technique,” Teaching Sociology 27 (January 1999): 44–54. 9-11 Stimulating Class Discussion About Social Inequality: Ideas for activities illustrating social inequality could be adopted as is or adapted for particular student populations. See A.J. Hattery, “Sleeping in the Box, Thinking Outside the Box: Student Reflections on Innovative Pedagogical Tools for Teaching about and Promoting a Greater Understanding of Social Class Inequality among Undergraduates,” Teaching Sociology v. 31 no 4 (October 2003) p. 412-27 9-12 Homeless Women: For a series of first-person accounts by homeless women that will provoke thought and discussion, see Elliot Liebow. Tell Them Who I Am: The Lives of Homeless Women. New York: Penguin, 1993. 9-13 Unequal Life Chances—A Class Activity: On slips of paper, write down various racial or ethnic life scenarios. For example, one slip could read, “You are an African-American female who was born in the slums to a mother who is addicted to crack,” or “You are a White male—only child—who was born to two parents who are attorneys,” etc. Have students draw these scenarios out of a hat, and then write down how different they might expect their lives to be compared with what they actually are. This kind of activity leads into a nice discussion of how unequal life chances are in reality. 9-14 Life Chances Simulation: See Margaret A. Miller, “Life Chances Exercise,” Teaching Sociology 20 (October 1992): 316–320. 9-15 Using Humor: Joseph E. Faulkner has produced a monograph that includes funny examples that could be incorporated into lectures associated with Chapter 9. See Chapter 6 in Faulkner, Sociology Through Humor. New York: West, 1987. This book is out of print, but used copies are readily available. TOPICS FOR STUDENT RESEARCH AND CLASSROOM DISCUSSION 1. Ask students to find examples of disparity or inequality between freshmen and senior level college students in the way each group is treated by college professors and students. Discuss caste and class systems to help explain some of the differences in perceptions. 2. Ask students to examine historical events that illustrate Marx’s concept of false consciousness in which the working classes readily supported causes put forth by powerful groups in society. Discuss how a false consciousness may develop and lead to people giving their life for those of another class grouping. 3. Ask students to search for evidence that supports the view that affluent persons tend to blame homeless people for being poor. Discuss the work of Herbert Gans to help explain the views of some persons toward homeless people. 4. Ask students to interview their parents, grandparents, and other adult relatives to ascertain how their occupations have changed during their working careers, and discuss the frequency and types of social mobility. 5. Ask students to find advertising or periodical articles that illustrate the influence of the powerful groups controlling opportunities for less influential persons. CHAPTER 10 GLOBAL INEQUALITY CHAPTER OUTLINE THE GLOBAL DIVIDE STRATIFICATION IN THE WORLD SYSTEM The Legacy of Colonialism Multinational Corporations Worldwide Poverty Modernization STRATIFICATION WITHIN NATIONS: A COMPARATIVE PERSPECTIVE Distribution of Wealth and Income Social Mobility CASE STUDY: STRATIFICATION IN MEXICO Mexico’s Economy Race Relations in Mexico: The Color Hierarchy The Status of Women in Mexico The Borderlands SOCIAL POLICY AND GLOBAL INEQUALITY: RETHINKING WELFARE IN EUROPE AND NORTH AMERICA Boxes Trend Spotting: Feeding the World Sociology in the Global Community: Income Inequality: A Global Perspective Sociology in the Global Community: Stratification in Brazil Case Study: Stratification in Mexico LEARNING OBJECTIVES WHAT’S NEW IN CHAPTER 10 1. Define and discuss what is meant by the “global divide.” 2. Discuss stratification in the world system. 3. Describe the significance of colonialism and multinational corporations in the context of global stratification. 4. Discuss the impact of modernization on global stratification. 5. Discuss patterns of stratification within nations. 6. Discuss the overlap of race, gender, and economic stratification within Mexico. 7. Discuss current debates and controversies regarding the issue of welfare reform in Europe and North America. • Trend Spotting Box, “Feeding the World” • Sociology in the Global Community Box, “Income Inequality: A Global Perspective” • Figure, “Multinational Corporations Compared to Nations” • Sociology in the Global Community Box, “Stratification in Brazil,” with figure, “Income by Race: Brazil and the United States” • Discussion of the shrinking safety net in Europe and North America CHAPTER SUMMARY A few centuries ago, global inequality was not nearly as significant as it is today. The Industrial Revolution and rising agricultural productivity produced explosive economic growth whose benefits were not evenly distributed across the world. Developing (or what used to be referred to as “third world”) countries have more than their fair share of rural population, as well as total births, disease, and childhood deaths. On the other hand, developed countries have a larger proportion of income and exports although they also contain a much smaller share of the world’s population. Colonialism is the maintenance of political, social, economic, and cultural domination over a people by a foreign power for an extended period of time. By the 1980s, colonialism had largely disappeared. Neocolonialism is the dependence of former colonies on foreign countries. Drawing on the conflict perspective, Immanuel Wallerstein views the global economic system as divided between nations that control wealth, and those from whom capital is taken. Wallerstein advanced a world systems analysis to describe the unequal economic and political relationships in which core nations exploit periphery nations. Wallerstein’s world systems analysis is the most widely used version of dependency theory. Dependency theory proposes that even as developing countries make economic advances, they remain weak and subservient to core nations and corporations, and this interdependency allows industrialized nations to continue to exploit them. Globalization is the worldwide integration of government policies, cultures, social movements, and financial markets through trade and exchange of ideas. The term multinational corporation refers to commercial organizations that are headquartered in one country but do business throughout the world. Functionalists view multinational corporations as helping developing nations, whereas conflict theorists view multinational corporations as exploiters of a nation’s cheap labor. Modernization refers to the far-reaching process by which peripheral nations move from traditional to more developed societies. Modernization theory, a functionalist approach, proposes that modernization and development will gradually improve the lives of people in developing countries. In contrast, conflict theorists view modernization as a dominating force over core nations, which facilitates further exploitation. The gap between the rich and poor nations is widening. In at least 26 nations around the world, the most affluent 10 percent of the population receives at least 40 percent of all income. Studies of intergenerational mobility in industrialized nations have found substantial similarities in the ways that the stratified position of parents is transmitted to their children. Structural factors and immigration continue to be significant factors in shaping a society’s intergenerational mobility. Mexico has been called a polarized society with enormous gaps between rich and poor, town and country, north and south, and white and brown. The country is divided along lines of class, race, religion, gender, and age. The subordinate status of Mexico’s Indians is a reflection of the nation’s color hierarchy. Women comprise 45 percent of the labor force in Mexico, but are mired in more low paying jobs than their counterparts in industrial nations. The term borderlands refers to the area of common culture along the border of Mexico and the United States. Foreign established companies (maquiladoras) are now experiencing the same type of challenge from global trade as U.S. manufacturing did. Conflict theorists note that unregulated growth allows the owners to exploit the workers. RESOURCE INTEGRATOR Focus Questions Resources 1. What is meant by the global divide as it relates to worldwide stratification? IN THE TEXT Key Terms: colonialism, neocolonialism, world systems analysis, dependency theory, globalization, multinational corporations, modernization, modernization theory Boxes: Trend Spotting, “Feeding the World” Sociology in the Global Community, “Income Inequality: A Global Perspective” Visual Support: Photo of New York City residents shopping for Xbox compared to photo of residents of Ethiopia waiting for water; Figure 10-1 “Fundamental Global Inequality”; Figure 10-2 “Gross National Income Per Capita;” photo of factory workers in China; Figure 10-3 “World Systems Analysis;” Figure 10-4 “Multinational Corporations Compared to Nations;” Figure 10-5 “Poverty Worldwide;” Figure 10-6 “Foreign Aid Per Capita in Nine Countries” IN THE INSTRUCTOR’S MANUAL Additional Lecture Ideas: 10-1, 10-2, 10-3 Classroom Discussion Topics: 10-5, 10-6, 10-7, 10-8 Topics and Sources for Student Research: Lorenz Curve; Segregation Video Resources: Caste at Birth; Coffee-Go-Round; Geraldo’s Brazil; Social Stratification 2. What do patterns of stratification within nations look like? IN THE TEXT Visual Support: Table 10-1, “Sociological Perspectives on Global Inequality;” Photo of UNICEF poster regarding economic exploitation; Figure 10-7 “Distribution of Income in Nine Nations;” Photo of factory workers in Malaysia Box: Sociology in the Global Community: “Stratification in Brazil” IN THE INSTRUCTOR’S MANUAL Additional Lecture Ideas: 10-3, 10-4, 10-5, 10-6 Classroom Discussion Topics: Derne’s Research; Active Learning; Study Abroad; Globalization and Sociology; Development; Anti-Globalism; Cross-National Studies of Inequality Topics and Sources for Student Research: The Social Construction of Class in Brazil; Inequality in Israel; Informal Economy; Segregation Video Resources: Affirmative Action; Caste at Birth; Coffee-Go-Round; Geraldo’s Brazil; A Question of Rights; Social Stratification 3. What do stratification patterns in Mexico look like? IN THE TEXT Key Terms: borderlands, remittances Visual Support: Photo of hotel worker near Merida, Mexico; Figure 10-8, “The Borderlands” IN THE INSTRUCTOR’S MANUAL Additional Lecture Ideas: 10-2, 10-6 Classroom Discussion Topics: 10-3, 10-4, 10-5, 10-6, 10-8 Topics and Sources for Student Research: Segregation; Informal Economy Video Resources: Caste at Birth; Coffee-Go-Round; A Question of Rights LECTURE OUTLINE I. The Global Divide • World inequality is significant. Disparities in life chances are so extreme that in some areas of the world, the poorest of the poor may not even be aware of them. • Rising productivity, economic growth, and living standards that began with the Industrial Revolution were not evenly distributed across the world. • The current level of world inequalities is a historical new phenomenon. II. Stratification in the World System A. The Legacy of Colonialism • Colonialism occurs when a foreign power maintains political, social, economic, and cultural domination over a people for an extended period of time. Example: British Empire in North America and India. • By the 1980s, colonialism had largely disappeared. But, colonial domination had established patterns of economic exploitation that continued after nationhood was achieved. • Neocolonialism is the subservient status of continuing dependence on foreign nations, including former colonial masters. • Immanuel Wallerstein’s world systems analysis describes the domination of industrialized nations (e.g., U.S., Japan, and Germany), and their global corporations over countries with marginal economic status. • Core nations control and exploit developing nations. • Periphery nations are those exploited by the world system. Example: nations of Asia, Africa, and Latin America. • The division between core and periphery nations is remarkably stable. • Dependency theory suggests that, as subservient countries make economic advances, they remain weak compared to the core nations. The vast share of their resources is redistributed to core nations. • Globalization is the integration of government policies, cultures, social movements, and financial markets through trade and the exchange of ideas. • Emergence of World Bank and the International Monetary Fund as major players in the global economy. B. Multinational Corporations • Multinational corporations are commercial organizations that are headquartered in one country, but do business throughout the world. • They don’t just buy and sell overseas; they also produce goods all over the world. • The total revenues of multinational businesses are on a par with the total value of the total goods and services exchanged in entire nations. 1. Functionalist View • Multinational corporations help developing nations by bringing jobs and industry. • They provide a combination of skilled technology and management. • They facilitate the exchange of ideas and technology around the world, making the world more interdependent. 2. Conflict View • Multinational corporations exploit local workers to maximize profits. Example: Starbucks. • The pool of cheap labor in the developing world encourages multinationals to move factories out of core countries, destabilizing labor there. • Trade unions are discouraged in the developing world. If labor demands become too threatening, multinationals just move elsewhere. Example: Nike • Over all, multinationals have a negative social impact on workers in both industrialized and developing nations. • Upper and middle classes benefit the most in developing nations. 3. Worldwide Poverty • In developing countries poverty is so extreme for those at the bottom that their survival is threatened. • United Nations planners estimate that if each developed country gave 0.7 percent of its gross national product in foreign aid, extreme global poverty could be eliminated. • In 2000 only five countries gave at that level. The U.S. did not. 4. Modernization • Term used to describe the far-reaching process by which periphery nations move from traditional or less developed institutions to those characteristic of more developed societies. • Modern society is more urban, literate, and industrial, and has sophisticated transportation and media systems. • Modernization theory suggests that modernization will gradually improve the lives of people in developing nations. • Conflict theory suggests that modernization perpetuates the dependency of exploited nations and is an example of contemporary neocolonialism. III. Stratification within Nations: A Comparative Perspective • The gap between rich and poor nations is widening, as is the gap between rich and poor within nations. • Foreign investment tends to increase economic inequality. A. Distribution of Wealth and Income • In at least 22 countries, the most affluent 10 percent of the population receives at least 40 percent of all income. • Economic trends vary from region to region, with growing disparity between rural and urban areas. B. Social Mobility 1. Mobility in Industrialized Nations • Studies indicate similarities in the ways that parents’ positions in stratification systems are transmitted to their children. • Influence of structural factors lead to the rise or decline in the social hierarchy. • Immigration continues to be a significant factor. 2. Mobility in Developing Nations • Macro-level social and economic changes often overshadow micro-level movement from one occupation to another. • In large developing nations, the most significant mobility is the movement out of poverty. Example: China and India. 3. Gender Differences and Mobility • Effects of development on women’s social standing and mobility are not necessarily positive. • As a country modernizes, women’s vital role in food production deteriorates, jeopardizing women’s autonomy and material well-being. IV. Case Study: Stratification in Mexico • Colonialism, neocolonialism, and the domination and exploitation of a peripheral developing country can be seen in the history of Mexico. • Comparing Mexico to the U.S.: In 2004, the gross national income per person in the U.S. was $39,710; in Mexico, it was $9,590. In the U.S., about 87 percent of adults have a high school diploma, compared to Mexico’s 13 percent. • The gap between the richest and poorest citizens is one of the widest in the world. A. Race Relations in Mexico: The Color Hierarchy • The subordinate status of Mexico’s Indians is a reflection of the nation’s color hierarchy, which links social class to the appearance of racial purity. • At the top of the hierarchy are the 10 percent of the population who are criollos (white, well educated, with roots in Spain). • In the middle are the large impoverished majority of mestizo, most of whom have brown skin and mixed racial lineage. • At the bottom are the destitute, full-blooded Mexican Indian minority and a small number of Blacks. B. The Status of Women in Mexico • Women constitute 45 percent of Mexico’s labor force, but they are mired in the lowest-paying jobs. • Politically, Mexican women are rarely part of top decision-making processes, although they have increased their representation in the national legislature, to 23 percent. • Even when they work outside the home, they are often are not recognized as active and productive household members, and find it hard to get credit . C. The Borderlands • The area of common culture along the border between Mexico and the U.S. • Day laborers cross border daily to work in the U.S. • Foreign-based companies (maquiladoras) are exempt from Mexican taxes and do not pay benefits for their workers. • Conflict theorists note that maquiladoras have exploited the work force. • In recent years, some companies have begun shifting their operations to China, where labor costs are even lower. • Some suggest that immigration problems in the borderlands are more of a labor market issue than a law enforcement issue. • Many Mexicans who have come to the U.S. send part of their earnings to family members in Mexico. These remittances have been falling in recent years. V. Social Policy and Stratification: Rethinking Welfare in Europe and North America A. The Issue • There has been considerable debate surrounding the issue of welfare reform in the United States. B. The Setting • In 1996, Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act, ending the long-standing federal guarantee of assistance to every poor family that meets eligibility requirements. • The law set a lifetime limit of five years of welfare benefits and required able-bodied adults to work after receiving two years of benefits. C. Sociological Insights • Conflict theorists view such changes in welfare legislation as perpetuating social inequality and creating an even wider gap between the “haves” and “have nots.” • From a conflict perspective, the backlash against welfare recipients reflects deep fears and hostility toward the nation’s urban, predominantly African American and Hispanic underclass. D. Policy Initiatives • Fewer people receive welfare assistance since the reforms were enacted in 1996. However, most of the breadwinners in these families continue to hold low paid, unskilled jobs. Of those who remain on welfare, nearly 60% are not in school or in welfare-to-work programs, as the law requires. • European governments have encountered many of the same citizen demands as in North America – to keep taxes low. However, nations in Eastern and Central Europe face a unique challenge in that, under communism, their economies differed greatly from that of the United States. Many of these countries now realize that universal coverage is no longer affordable and will need to be replaced with targeted programs. KEY TERMS Borderlands The area of common culture along the border between Mexico and the United States. Colonialism The maintenance of political, social, economic, and cultural domination over a people by a foreign power for an extended period. Dependency theory An approach that contends that industrialized nations continue to exploit developing countries for their own gain. Globalization The worldwide integration of government policies, cultures, social movements, and financial markets through trade and the exchange of ideas. Gross national product (GNP) The value of a nation’s goods and services. Human rights Universal moral rights possessed by all people because they are human. Modernization The far-reaching process by which peripheral nations move from traditional or less developed institutions to those characteristic of more developed societies. Modernization theory A functionalist approach that proposes that modernization and development will gradually improve the lives of people in developing nations. Multinational corporation A commercial organization that is headquartered in one country but does business throughout the world. Neocolonialism Continuing dependence of former colonies on foreign countries. Remittances The monies that immigrants return to their families of origin. Also called migradollars. World systems analysis A view of the global economic system as one divided between certain industrialized nations that control wealth and developing countries that are controlled and exploited. ADDITIONAL LECTURE IDEAS 10-1: Inequality in Reforming State Socialism Fueled by concerns about growing poverty and increasing concentration of wealth, one of the most central pursuits in contemporary sociology has been to understand the mechanisms shaping economic inequalities. Much of our understanding of stratification processes, however, is based on the experience of market economies, especially that of the United States. Comparative research on societies with non-market or transitional economic systems is essential for understanding the basic mechanisms that determine the winners and losers in a social system. The study of Maoist-era China (1949-76) allowed stratification researchers to understand how socialist economic policies influence both the overall distribution of income and wealth, and the significance of assets like education for getting ahead in a non-market economy. Research from this era pointed to two basic contrasts between socialist China and the United States. First, income and other scarce resources (housing, pension benefits, and medical care) in Chinese cities were about 25 percent more equally distributed than is typical in capitalist societies (Whyte and Parish 1984). Second, while educational credentials are key for maximizing one’s income and wealth in capitalist societies, in socialist China the biggest rewards were accrued to those who had political capital (Walder 1986). The more recent, incremental dismantling of socialist institutions in China has opened up fresh opportunities for sociologists to study inequality from a comparative perspective. Beginning in the early 1980s, market reforms have led to heavy foreign investment and the emergence of a thriving private sector in urban areas. Within firms still controlled by the state, budget constraints are much stricter than before, and strong profit incentives are in place. How has such wide-scale institutional change altered opportunity structures for urban businesses and individuals, and how have organizations and social actors responded to these changes? What kinds of personal assets (education, political ties) are valued in new work environments? How, ultimately, does the dismantling of a socialist economy impact access to income, wealth, and other valued resources? Reflecting the importance of these questions to the discipline of sociology, in the past decade a number of studies addressing post-socialist stratification in China and/or other former socialist countries have been published in mainstream sociology journals. Some studies conclude that stratification processes in contemporary China are much the same as they were during the Maoist era, with political actors still able to use their political influence for economic gain in a more marketized environment (Bian and Logan 1996; Xie and Hannum 1996; Zhou, Tuma and Moen 1996). Others conclude just as strongly that marketization has opened up new opportunities for those with educational capital—regardless of their political ties—thus resulting in a stratification system that is closer to those found in capitalist societies (Nee 1989, 1991, 1996). Other analyses emphasize that so many years of incremental market reforms have produced urban environments in which markets and socialism co-exist. In areas of the economy still governed by redistributive principles, the determinants of access to valued resources remain much as they were before post-Mao reforms were implemented. In particular, urban residents with political capital are more frequently given the opportunity to earn higher incomes within publicly owned work organizations. In areas of the urban environment governed by market principles, however, we see a dramatic reversal in the value of personal assets for getting ahead. In privately owned and foreign-invested work organizations, having educational credentials rather than political capital is key for acquiring greater work rewards (Zang 2002). The fact that this shift was initiated by legal changes in property rights and organizational forms points to the importance of legal institutions in shaping inequality processes. For the most part, all of these studies have explored post-socialist change in the determinants of income attainment or job mobility only, giving us just a partial understanding of inequality processes there. In addition to cash income, socialist and post-socialist work organizations typically control access to a number of scarce consumer goods and services as well (e.g., medical care, pension benefits, long-distance travel tickets, housing, transportation, discounted meals). Whether or not an employer provides such goods and services is as important to economic well-being as one’s salary level. Sources used for this essay include: Yanjie Bian and John Logan, “Market Transition and the Persistence of Power,” American Sociological Review 61 (October 1996): 739-58; Victor Nee, “A Theory of Market Transition,” American Sociological Review 54 (October 1989): 663-81; Victor Nee, “Social Inequalities in Reforming State Socialism,” American Sociological Review 56 (June 1991): 267-82; Victor Nee, “The Emergence of a Market Society: Changing Mechanisms of Stratification in China,” American Journal of Sociology 101 (January 1996): 908-49; Andrew G. Walder. Communist Neo-Traditionalism. Berkeley: University of California Press, 1986; Martin K. Whyte and William L. Parish. Urban Life in Contemporary China. Chicago: University of Chicago Press, 1984; Yu Xie and Emily Hannum, “Regional Variations in Earnings Inequality in Reform-Era Urban China,” American Journal of Sociology 101 (January 1996): 950-92; Xiaowei Zang, “Labor Market Segmentation and Income Inequality in Urban China,” The Sociological Quarterly 43 (Winter 2002): 27-44; Xueguang Zhou, Nancy Brandon Tuma, and Phyllis Moen, “Stratification Dynamics under State Socialism: The Case of Urban China, 1949-1993,” Social Forces 74 (March 1996): 759-796. 10-2: Political Coalitions and the Poor in Developing Countries Bringing about reforms that are intended to reduce poverty is not necessarily a matter of simply pitting the poor against the non-poor. Although many economic policies benefit the rich at the expense of the poor, certain approaches, according to the World Bank, can draw support from coalitions that cut across the poor/non-poor divide. An example of a poor/non-poor coalition can be found in food pricing policies. In many African and Latin American countries, the agricultural sector has long suffered from policies that favor industry and cities. For example, food prices are frequently kept low, which benefits the urban poor, industrial workers, and business owners; but this policy functions at the expense of the entire rural sector, including the poor. In Argentina, Chile, and Peru, the success of tax reforms and other reforms designed to benefit the poor has generally turned on the stance of white-collar workers, professionals, bureaucrats, and small- and medium-size business interests. Redistributive policies have been more likely to succeed when these sectors share in transfers directed primarily to the poor. The same is no doubt true in many other countries. The Maharashtra Employment Guarantee Scheme in India transfers income from the urban non-poor to the rural poor, but it nevertheless enjoys wide political support because the urban non-poor see the reduction of migration to Bombay as a benefit, and landowners may look favorably on the scheme because it helps to stabilize the rural labor force and because it creates infrastructure in the countryside. See World Development Report 1990. Oxford, England: Oxford University Press, 1990, p. 52. 10-3: Modernization: Kenya—A Case Study We can apply the modernization approach to a case study of Kenya, an African nation of 28 million people. Kenya remained a British colony until 1962, and its people exercised little authority, as European settlers clung to their privileges and power. For Kenya and most other developing nations, colonialism stimulated the use of modern technology, but it also delayed the development of new leaders. Initially, the impact of technological and institutional changes can be quite unsettling. For example, the introduction of improved health measures in Kenya led to a rise in the birthrate, a decline in the death rate, and an overall increase in population growth. Yet, at first, there were not adequate food supplies or school facilities to cope with the larger population. Upon independence in 1962, Kenyans turned to the charismatic Jomo Kenyatta, longtime organizer against colonial rule, for political leadership. Popularly elected and in office until his death in 1978, Kenyatta maintained a model of harambee, a Swahili term that means “let us all pull together.” This motto symbolized his effort to bring together Kenyans—rural and urban, Black and White—from 43 diverse ethnic and linguistic groups. As one indicator of Kenyatta’s effectiveness, presidential succession occurred peacefully following his death (Carter 1996). However, Kenya remains at the periphery of the global economy. According to the United Nations’ Human Development Index, which combines indicators of real purchasing power, education, and health, Kenya ranked 128 out of 174 nations studied in 1996. While a small, privileged African elite holds disproportionate wealth and power, Kenya’s estimated gross national product per capita is only $260. According to United Nations’ studies, about 30 percent of the nation’s population is malnourished (Barnet 1990; Haub and Yanagishita 1996; Perlez 1991; United Nations Development Programme 1996). The spread of AIDS has posed a new threat to Kenya’s people and economy. An estimated 1 million Kenyans are believed to be carrying the HIV virus, including perhaps as many as one of every seven residents of the capital city of Nairobi. According to projections by the United Nations, life expectancy in Kenya by the year 2005 was 10 years lower than it would have been without AIDS. Moreover, by the same year, labor costs may have risen by as much as 65 percent because of production losses (Carter 1996). The political situation in Kenya had been characterized in the early 1990s as a retreat from democracy. In 1991, Western countries suspended hundreds of millions of dollars in aid to Kenya as a means of forcing economic and political changes. Consequently, in 1992, Kenya held multiparty elections for the first time in 26 years. Nevertheless, as of late 1996, Kenya was experiencing serious unemployment, food shortages, and political turmoil. Opposition political leaders and members of the clergy were demanding a new constitution with a fairer electoral system as well as an end to police attacks on critics of the government (McKinley 1996; Sly 1995; World Resources Institute et al. 1996). From a conflict perspective, modernization in developing countries such as Kenya often perpetuates dependence on and continued exploitation by more industrialized nations. For example, in recent decades Kenya has been the second largest recipient of U.S. assistance in sub-Saharan Africa, owing in good part to Kenya’s anticommunist posture (more of a factor during the cold war) and to a 1980 defense agreement that gives the United States access to its airports and seaports. Conflict theorists view such a continuing dependence on foreign powers as an example of contemporary neocolonialism. In the case of Kenya, however, the dissolution of the Soviet Union and the resulting reduction in cold war tension led to a significant decline in foreign aid from the United States. Sociologist York Bradshaw (1988) has modified Immanuel Wallerstein’s world systems analysis as it relates to Kenya. After examining changes in the economy and the role of foreign capital since 1963, Bradshaw concluded that while multinational corporations obviously find it profitable to invest in Kenya, they do not completely dominate the nation’s economy. These corporations are heavily taxed and are required by law to form joint ventures with local businesspeople. However, as noted earlier, a small, privileged elite benefits from such investment, while most Kenyans gain little from economic development. Sources for this lecture include the following: Richard J. Barnet, “But What about Africa?” Harper’s 280 (May 1990): 43–51; York W. Bradshaw, “Reassessing Economic Dependency and Uneven Development: The Kenyan Experience,” American Sociological Review 53 (October 1988): 693–708; Marion Carter, “Kenya,” Population Today 24 (January 1996): 7; Carl V. Haub and Machiko Yanagishita. World Population Data Sheet, 1996. Washington, DC: Population Reference Bureau; James C. McKinley, Jr., “Kenya’s Leader Keeps Rivals at Bay,” New York Times (September 29, 1996): 14; Jane Perlez, “In Kenya, the Lawyers Lead the Call for Freedom,” New York Times (March 10, 1991): E2; Liz Sly, “Caught in Corruption’s Stranglehold,” Chicago Tribune (November 19, 1995): 1, 20; United Nations Development Programme. Human Development Report 1996, New York: Oxford University Press, 1996; World Resources Institute, United Nation Environment Programme, United Nations Development Programme and World Bank, 1996–1997. New York: Oxford University Press. 10-4: Diffusion into Asia What are the cultural and economic consequences of the diffusion of U.S. styles and tastes throughout the world? Kenichi Ohmae, Asian specialist and advisor to the Malaysian government, has referred to this phenomenon as the “Californiaization” of taste, as global brands of blue jeans and stylish athletic shoes are as much on the mind of the taxi driver in Shanghai as they are in the kitchen or the closet of the schoolteacher in Stockholm or Sâo Paulo. As a recent case example, he points to Avon’s experience in China. In 1993, Avon ran a television commercial in the Guangdong province of China; it featured “Hong Kong Girls” and implied that Chinese girls, if they used the proper lipstick, could become rich and as pretty as the young women who were clad in miniskirts, dancing the go-go, and wearing American styles. After just three years in operation, Avon has mobilized 30,000 door-to-door “Avon ladies” in this one Chinese province. The Avon Corporation thought door-to-door sales were necessary, but demand is so great that the women come right to the distribution points for more products. As a result of such influences, China is undergoing a major social transition as it moves from being a centrally controlled nation-state oriented toward Beijing to being a commonwealth of (reasonably autonomous) region-states. According to Ohmae, the move toward regionalism is not limited to China. He points to similar regions within other nations that are developing their own identity and participating directly in the global economy. In Canada, for example, besides the well-publicized separatist efforts by Quebec, Ohmae notes that British Columbia, Ontario, Alberta, and Manitoba all have their own provincial political parties. Simultaneously, as these parties become more significant in Canada’s politics, the national border with the United States is growing fainter as NAFTA becomes fully implemented. See Kenichi Ohmae. New Perspectives Quarterly 12 (Winter 1995):14–20. 10-5: Gaijin We are familiar with the concepts of out-group and ethnocentrism, but within the culture of Japan those ideas perhaps can be summed up in the concept of gaijin, or “foreigner.” It has long been observed that, in Japan, foreigners are treated as outsiders even after they have lived in the country for a long time. Donald Ritchie, a White American writer who has lived in Japan for more than 40 years, said that, outside of his neighborhood and circle of friends, he is still considered a gaijin. He notes that, “Giggly schoolgirls on the subway will sit and talk about me, thinking I don’t speak Japanese, about how pink I am, how hairy.” He captured the feeling of not being a part of Japan despite having spent a large part of his life there when he wrote “I live in this country as the water insect lives in the pond, skating across the surface, not so much mindful as incapable of seeing the depths” (De Witt, 1995). Because of the feeling of “Gaijin wa dame,” or “No foreigners here,” it is difficult to sort out how much of the prejudice observed in Japan is nationalistic. For example, in 1995 three U.S. servicemen, all African American, were accused and convicted of kidnapping and raping a 12-year-old Japanese girl in Okinawa. The huge negative response by the public in Japan was interpreted by some in the United States as racist in nature, whereas it probably was more that the Japanese saw it as bad enough that the offenders were gaijin. This is not to say the Japanese have not adopted some of the stereotypes found in imported U.S. television and motion pictures. Also, the Japanese seem to distinguish among Asian arrivals, showing typically the greatest respect for the Chinese and the least for the Koreans, a group that is particularly vulnerable historically to ill-treatment in Japan. See Karen De Witt, “In Japan, Blacks as Outsiders,” New York Times (December 10, 1995): E4. Also see Hilary E. MacGregor, “Prejudice Prevalent in Japan, Asian Foreigners Say,” Los Angeles Times (November 19, 1995): A38. 10-6: The Informal Economy Do you know someone who takes in tips and doesn’t report the income? Have you traded services with someone—say, a haircut in exchange for help with a computer problem? These are aspects of an informal economy: the transfer of money, goods, or services that are not reported to the government. Participants in this type of economy avoid taxes, regulations, and minimum wage provisions, as well as expenses incurred for bookkeeping and financial reporting. Anthropologists studying developing nations and preindustrial societies have long acknowledged the existence of informal social networks that make, sell, and trade goods and services. Only recently have these networks been identified as common to all societies. In industrial societies, the informal economy embraces transactions that are individually quite small but that can be quite significant when taken together. One major segment of this economy involves illegal transactions—such as prostitution, sale of illegal drugs, gambling, and bribery—leading some observers to describe it as an “underground economy.” Yet the informal economy also includes unregulated childcare services and the unreported income of craftspeople, street vendors, and employees who receive substantial tips. According to estimates, the informal economy may account for as much as 10 to 20 percent of all economic activity in the United States. Although these informal economic transactions take place in virtually all societies—both capitalist and socialist—the pattern in developing countries differs somewhat from the informal economy of industrialized nations. In the developing world, governments often set up burdensome business regulations that an overworked bureaucracy must administer. When requests for licenses and permits pile up, holding up business projects, legitimate entrepreneurs find they need to “go underground” in order to get anything done. In Latin America, for example, the underground economy is estimated to account for about one third of the gross domestic product of the area. Informal industrial enterprises, such as textile factories and repair shops, tend to be labor-intensive. Underground entrepreneurs cannot rely on advanced machinery, since a firm’s assets can be confiscated for failure to operate within the open economy. Viewed from a functionalist perspective, the bureaucratic regulations have contributed to the rise of an efficient informal economy in certain countries. Nevertheless, these regulatory systems are dysfunctional for overall political and economic well-being. Since informal firms typically operate in remote locations to avoid detection, they cannot easily expand even when they become profitable. Given the limited protection for their property and contractual rights, participants in the informal economy are less likely to save and invest their income. Informal economies have been criticized for promoting highly unfair and dangerous working conditions. A study of the underground economy of Spain found that workers’ incomes were low, there was little job security, and safety and health standards were rarely enforced. Both the Spanish government and the nation’s trade unions seemed to ignore the exploitation of participants in the informal economy. Still, especially in the developing world, the existence of a substantial underground economy simply reflects the absence of an economic system that is accessible to all residents. CLASSROOM DISCUSSION TOPICS 10-1. Stimulating Classroom Discussions about Derné’s Research: Questions for stimulating a classroom discussion about Steve Derné’s research can include these: What, in your view, are the functions and dysfunctions of increased consumerism in India? What are some of the reasons that India has become such a target for Western businesses? Derné notes that there has been limited research on the impact of globalization in rural areas. What kind of impact might you expect? Derné utilized observation research in his work. What other research methods, if any, might be appropriate for the studying the implications of globalization for Indian society? 10-2. Active Learning: Students take on the roles and perspectives of members in a fictional developing country with a strict hierarchical social system in this exercise. See M. Holtzman, “Teaching Sociological Theory Through Active Learning: The Irrigation Exercise,” Teaching Sociology v. 33 no. 2 (April 2005) p. 206-12. 10-3. Using Email to Promote Cross-Cultural Understanding: Hare has United States-born students and international students learn about family systems through email correspondence. However, the same technique could be used to learn about many other areas of sociological interest. See Sara C. Hare, “Using E-Mail to Promote Cross-Cultural Understanding of Families,” Teaching Sociology 27(January 1999):67–73. 10-4. Study Abroad: A great way for students to learn about other cultures is to visit them. Numerous study abroad opportunities exist. See the first referenced article for an example of a successful sociology-based study abroad program and see the second reference for a useful Internet site that provides links to study abroad programs throughout the world: Theodore C. Wagenaar and Janardan Subedi, “Internationalizing the Curriculum: Study in Nepal,” Teaching Sociology 24 (July 1996):272–283. Study Abroad Links website: www.studyabroadlinks.com. 10-5. Globalization and Sociology: In an article that is useful for instructors and that may be assigned to students to generate class discussion about our myopic or ethnocentric view of the world, William G. Martin argues for the need for the globalization of sociology courses. See William G. Martin, “Toward a ‘Global’ Curriculum and Classroom: Contrasting Comparative- and World-Historical Strategies,” Teaching Sociology 24 (April 1996): 135–147. 10-6. Development: Select a developing nation of Asia, Africa (other than Kenya), or Latin America, and trace its emergence as a nation-state. Note the major contributions and dysfunctions of colonialism. What are the social conflicts between traditional value patterns and those associated with industrial societies? What means have been used to promote feelings of nationalism? How has economic development helped or hindered political development? 10-7. Anti-Globalism: The members of the world’s elite have led the march toward globalism, but millions of people see themselves as losers when national barriers fall. See J. Ørstrøm Møller, “The Growing Challenge to Internationalism,” The Futurist 33 (March 1999): 22–27. 10-8. Cross-National Studies of Inequality: Two interesting cross-national discussions of inequality that nicely complement the text material are Björn Gustafsson and Mats Johansson, “In Search of Smoking Guns: What Makes Income Inequality Vary over Time in Different Countries,” American Sociological Review 64 (August 1999): 585–605; and Arthur S. Alderson and François Nielsen, “Income Inequality, Development, and Dependence: A Reconsideration,” American Sociological Review 64 (August 1999): 606–631. TOPICS FOR STUDENT RESEARCH AND CLASSROOM DISCUSSION 1. Ask students to demonstrate various ways the Internet has increased globalization and reduced the size of the world. 2. Ask students to search for evidence that supports Wallerstein’s world systems theory in which the United States has acted as a “core” nation, and discuss ethnocentrism and its relationship to economic stratification. 3. Ask students to search for evidence that supports Wallerstein’s dependency theory in which the United States has acted as a “core” nation, and discuss ethnocentrism and its relationship to economic stratification. 4. Ask students to locate examples of modernization that support the functionalist approach to modernization, and discuss the impact of modernization theory on stratification. 5. Ask students to search for any cultural examples in which women have experienced social mobility at a greater pace than men, and discuss the issue of gender and mobility. 6. Ask students to find advertising or periodical articles that illustrate the influence of the United States on Third World countries, and discuss the effects of globalization and multinational corporations on foreign cultures. Instructor Manual for Sociology Richard T. Schaefer 9780078026669