Supply=IndividualBeyond IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDem...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$Social DarwinismH...
GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$IndividualPerspec...
GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$IndividualPerspec...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$IndividualPerspec...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
GivenSupply=Extra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$Cultural CapitalPierre Bord...
GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$Social CapitalWik...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$Social Reproducti...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
GivenSupply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemogra...
Supply=IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalL...
GivenSupply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemogra...
Supply=IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalL...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTech...
Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTech...
Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTech...
Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTech...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTech...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
GivenSupply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemogra...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDema...
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summary - explaining reward inequality

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summary - explaining reward inequality

  1. 1. Supply=IndividualBeyond IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$Skeletal Summary
  2. 2. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$social Darwinismhuman capitalfunctional theorySupply Summary
  3. 3. GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$Social DarwinismHerbert SpencerAs in the natural world, humans are involved in constant struggle.Those who are at the top of the hierarchy are largely there as aresult of a sorting process that rewards superior personalcharacteristics, e.g., heightened intelligence, talent, skills, ambition,and drive. Less endowed people therefore occupy lesser positionsin the structure. Those at the bottom are clearly the most deficientindividuals within the society. Social programs that might helpthem to move out of poverty are therefore ill-advised as they willonly perpetuate inferior stock.IndividualPerspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentEducation / training –arbitrary restrictions / advantagesSocial / economic inequalitiesSocial networks and contactsClass origins / circumstancesDemographic characteristics(sex, age, etc)Innate intelligenceRaw talent
  4. 4. GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$IndividualPerspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentEducation / training –arbitrary restrictions / advantagesSocial / economic inequalitiesSocial networks and contactsClass origins / circumstancesDemographic characteristics(sex, age, etc)Innate intelligenceRaw talentHuman Capitalaka orthodox or neoclassical labor market theoryLow income is a consequence of low worker productivity. Productivity,and therefore, income are thought to be most sensitive to improvementIn the attributes and resources of individual workers. Investment inadditional education and training, in particular, are recommended asthe primary means by which one can qualify for more productive,better-paying occupations.
  5. 5. GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$IndividualPerspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentEducation / training –arbitrary restrictions / advantagesSocial / economic inequalitiesSocial networks and contactsClass origins / circumstancesDemographic characteristics(sex, age, etc)Innate intelligenceRaw talentFunctional Theory of Social StratificationKingsley Davis and Wilbert MooreInequality in reward is universal to all societies as it ensures that themost capable people are in the most important occupational roles.High rewards are necessary for attracting people into thoseoccupations requiring special talent or training. The very high payattached to some positions therefore reflects the scarcity of peoplewith such attributes that would enable them to competently prepare forand perform these roles.
  6. 6. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$Supply Summaryculture of poverty
  7. 7. GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$IndividualPerspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentEducation / training –arbitrary restrictions / advantagesSocial / economic inequalitiesSocial networks and contactsClass origins / circumstancesDemographic characteristics(sex, age, etc)Innate intelligenceRaw talentCulture of PovertyOscar LewisA largely individual explanation that argues that some poor within asociety, develop certain behaviors or even a way of life that enablethem to adapt to the circumstances of poverty. That is, some poorhave certain beliefs and behavior practices (e.g., ―live for today‖ orfatalistic attitudes) that help them better cope with impoverishedcircumstances. However, these adaptations may prevent the poorand their offspring from adopting other behaviors that would allowthem to take advantage of relevant mobility opportunities shouldthey arise.
  8. 8. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$Supply Summarycultural capitalsocial capital
  9. 9. GivenSupply=Extra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$Cultural CapitalPierre BordieuAnnette LareauPeople in different social classes tend to be exposed to different kinds ofperspectives, knowledge, beliefs, attitudes, skills, and lifestyles.Capitalization allows for human potential to be realized, and such effects over timeare accumulated. ―Cumulative advantage‖ describes outcomes for those in thehigher reaches of the class structure (i.e., capital accumulation is varied, rich, andworks to their advantage, ensuring their dominant position). However, those in thelower classes experience ―cumulative disadvantage,‖ making upward mobility difficultdespite strong motivation and efforts.Understanding the importance of acquiring cultural capital, privileged groups oftenengage their children in ―concerted cultivation‖ (i.e., going to great effort and expenseto provide them with special opportunities and experiences).Perspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentEducation / training –arbitrary restrictions / advantagesSocial / economic inequalitiesSocial networks and contactsClass origins / circumstancesDemographic characteristics(sex, age, etc)Innate intelligenceRaw talent
  10. 10. GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$Social CapitalWikipedia referenceMark GranovetterPeople vary in the kinds and numbers of people they know. Socialcontacts are important sources of information, knowledge, andopportunity about preparation for entry and mobility within jobs.Social contacts and consequent social networks vary significantlyacross the class structure. Presumably, the higher one’s classposition, the more extensive and helpful is one’s network of socialrelationships with regard to these matters.Perspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentEducation / training –arbitrary restrictions / advantagesSocial / economic inequalitiesSocial networks and contactsClass origins / circumstancesDemographic characteristics(sex, age, etc)Innate intelligenceRaw talent
  11. 11. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$Supply Summarysocial reproduction
  12. 12. GivenSupply=IndividualExtra-IndividualActive PassiveSocietalDemandInstitutionalAcquiredExternal Internal$Social ReproductionSamuel Bowles and Herbert GintisExisting social conditions ensure that one’s offspring and subsequentgenerations maintain one’s advantaged or disadvantaged position in theclass structure. Education inequalities are viewed as particularlyimportant in this regard. For example, schools attended by affluentchildren tend to offer a richer and more demanding curriculum than thosein middle and working-class neighborhoods. Schools in low-income areas,moreover, tend to receive inadequate funding and suffer from a variety ofdeficiencies, collectively ensuring that they will fail to serve their students.Therefore, these students when adults will be in the same class position astheir parents.Perspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentEducation / training –arbitrary restrictions / advantagesSocial / economic inequalitiesSocial networks and contactsClass origins / circumstancesDemographic characteristics(sex, age, etc)Innate intelligenceRaw talent
  13. 13. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$Supply Summarysocial closure
  14. 14. GivenSupply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTechnological changePublic perception / tasteActive PassiveLabor/management policy environ.Immigration law / enforcementFiscal and tax policiesTrade policiesJob programsEducation / training pols./progsSocial welfare pols./progs.SocietalDemandInstitutionalLabor Process Labor Market SegmentationDivision of Labor DiscriminationMechanization Internal labor marketDownsizing Dual labor marketOutsourcing Split labor marketMulti-tiered structureAcquiredExternal Internal$ProfessionalizationLegislation – LawLicensureRights of practice Social Closure - SupplyIn terms of supply, social closure is present when social groupscan limit access to relevant preparation opportunities (e.g., viaschool segregation or educational discrimination).It is also evident when a professional organization has suchinfluence that it can limit the volume of those who mightotherwise enter the profession, and thus increase incomes forexisting practitioners by significantly restricting educational ortraining opportunities.Perspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentEducation / training –arbitrary restrictions / advantagesSocial / economic inequalitiesSocial networks and contactsClass origins / circumstancesDemographic characteristics(sex, age, etc)Innate intelligenceRaw talent
  15. 15. Supply=IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$Supply SummaryExtra-IndividualWilsonstructural
  16. 16. GivenSupply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTechnological changePublic perception / tasteActive PassiveLabor/management policy environ.Immigration law / enforcementFiscal and tax policiesTrade policiesJob programsEducation / training pols./progsSocial welfare pols./progs.SocietalDemandInstitutionalLabor Process Labor Market SegmentationDivision of Labor DiscriminationMechanization Internal labor marketDownsizing Dual labor marketOutsourcing Split labor marketMulti-tiered structureAcquiredExternal InternalEducation / training inequalitiesSocial networks and contactsEducation / training– arbitrary restrictions$ProfessionalizationLegislation – LawLicensureRights of practiceClass origins /circumstancesDemographiccharacteristics (sex,age, race, etc)Innate intelligenceRaw talentPerspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentStructural TheoryWilliam Julius WilsonWilson’s ―structural theory‖ represents an attempt to account for the adversecircumstances of inner-city black Americans. Although historically situated, itaddresses economic inequality via extensive treatment of both supply and demandfactors.Wilson holds that black poverty today is far more a matter of class conditions thanovert racism. While the legacy of slavery and historical discrimination placed blacksat the bottom of the urban class structure by the middle of the 20th century, variouseconomic, demographic, and cultural factors have since joined to limit their mobilityprospects.In brief: Deindustrialization has created high unemployment and underemployment,while a declining tax base, due also to the flight of middle and working class peopleto the suburbs, has undermined provision of essential services (decent schools,health services, etc) within inner cities. Now lacking a substantial black middle-class, inner-city populations, in turn, reflect the ―concentration effects‖ of poverty,including a preponderance of single-parent families, drug addiction, violent crime—all of which further serve to reduce individuals’ life quality and mobility potential, aswell as diminish the likelihood of economic investment from outside sources.
  17. 17. Supply=IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$social Darwinismhuman capitalfunctional theorySupply Completecultural capitalsocial capitalculture of povertysocial reproductionsocial closureExtra-IndividualWilsonstructural
  18. 18. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$Demand SummaryMarxian radical
  19. 19. Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTechnological changePublic perception / tasteSocial movements – boycottsRevolutionLabor/management policy environ.Immigration law / enforcementFiscal and tax policiesTrade policiesJob programsEducation / training pols./progsSocial welfare pols./progs.SocietalDemandInstitutionalLabor Process Labor Market SegmentationDivision of Labor DiscriminationMechanization Internal labor marketDownsizing Dual labor marketOutsourcing Split labor marketMulti-tiered structure$ProfessionalizationLegislation – LawLicensureRights of practiceMarxian / Neo-MarxianThese explanations largely center on the labor process and thesegmentation of the labor force.Focus on the labor process relates to how work is organized,performed, and distributed in order to decrease the demand formore expensive, skilled workers or to cut costs by shedding manyemployees from the firm.Marx, e.g., noted that capitalist producers progressively lessen, oraltogether remove, the skill-component of manufacturing work byfirst instituting a complex division of labor which simplifiesproduction, and then further proceeds by replacing workers withmachines.
  20. 20. Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTechnological changePublic perception / tasteSocial movements – boycottsRevolutionLabor/management policy environ.Immigration law / enforcementFiscal and tax policiesTrade policiesJob programsEducation / training pols./progsSocial welfare pols./progs.SocietalDemandInstitutionalLabor Process Labor Market SegmentationDivision of Labor DiscriminationMechanization Internal labor marketDownsizing Dual labor marketOutsourcing Split labor marketMulti-tiered structure$ProfessionalizationLegislation – LawLicensureRights of practiceMarxian / Neo-MarxianDownsizing entails large-scale cost cutting, often motivated by thequest for short term profits, by terminating large numbers ofworkers. Remaining workers are often then required to ―take upthe slack‖ caused by such reductions. Some of vacated positions,however, may be refilled soon thereafter, perhaps by the sameworkers, but now employed as ―temps.‖Outsourcing part or all of manufacturing to areas of cheaper laboreither within the U.S. or abroad represents the most recent phase ofthis process.
  21. 21. Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTechnological changePublic perception / tasteSocial movements – boycottsRevolutionLabor/management policy environ.Immigration law / enforcementFiscal and tax policiesTrade policiesJob programsEducation / training pols./progsSocial welfare pols./progs.SocietalDemandInstitutionalLabor Process Labor Market SegmentationDivision of Labor DiscriminationMechanization Internal labor marketDownsizing Dual labor marketOutsourcing Split labor marketMulti-tiered structure$ProfessionalizationLegislation – LawLicensureRights of practiceMarxian / Neo-MarxianA working class segmented by race will be likely be characterizedby significant racial antagonism, and thus unlikely to oppose theinterests of capitalist employers.
  22. 22. Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTechnological changePublic perception / tasteSocial movements – boycottsRevolutionLabor/management policy environ.Immigration law / enforcementFiscal and tax policiesTrade policiesJob programsEducation / training pols./progsSocial welfare pols./progs.SocietalDemandInstitutionalLabor Process Labor Market SegmentationDivision of Labor DiscriminationMechanization Internal labor marketDownsizing Dual labor marketOutsourcing Split labor marketMulti-tiered structure$ProfessionalizationLegislation – LawLicensureRights of practiceMarxian / Neo-MarxianMarxian theory also addresses the larger political/economicenvironment , e.g., Marx saw the government as ―the rulingcommittee of the bourgeoisie.‖The state accordingly acts in the interests of big business, craftinglaws and policies that favor the interests of the most powerfulcorporations over the interests of labor, as well as those of smallbusiness.
  23. 23. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$social closureDemand Summary
  24. 24. Supply=Occupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTechnological changePublic perception / tasteSocial movements – boycottsRevolutionLabor/management policy environ.Immigration law / enforcementFiscal and tax policiesTrade policiesJob programsEducation / training pols./progsSocial welfare pols./progs.SocietalDemandInstitutionalLabor Process Labor Market SegmentationDivision of Labor DiscriminationMechanization Internal labor marketDownsizing Dual labor marketOutsourcing Split labor marketMulti-tiered structure$ProfessionalizationLegislation – LawLicensureRights of practiceSocial Closure - DemandAt the demand level, social closure relates to attempts among those within anoccupation to achieve a monopoly over work performance. That is, demandmay be strongly influenced by the ability of occupational groups to generatesufficient power to gain control over particular productive functions. Suchactivity is evident in the efforts of occupations to ―professionalize‖ (i.e., createstandards of performance and prerequisites for entry) through an organizationalvehicle which then lobbies legislative bodies to impose special requirements(e.g., training prerequisites and/or licensing) on those who would practice thecraft. Demand for service is thus effectively channeled to only those who areduly credentialed.
  25. 25. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$Demand SummaryWilsonstructural
  26. 26. GivenSupply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomyDemographic changeState of EconomyTechnological changePublic perception / tasteActive PassiveLabor/management policy environ.Immigration law / enforcementFiscal and tax policiesTrade policiesJob programsEducation / training pols./progsSocial welfare pols./progs.SocietalDemandInstitutionalLabor Process Labor Market SegmentationDivision of Labor DiscriminationMechanization Internal labor marketDownsizing Dual labor marketOutsourcing Split labor marketMulti-tiered structureAcquiredExternal InternalEducation / training inequalitiesSocial networks and contactsEducation / training– arbitrary restrictions$ProfessionalizationLegislation – LawLicensureRights of practiceClass origins /circumstancesDemographiccharacteristics (sex,age, race, etc)Innate intelligenceRaw talentPerspectives, values, tastesInformation & connectionsWork habitsCultivated talentOccupational aspirationsSchooling attainmentStructural TheoryJulius WilsonFinally, Wilson’s ―structural theory‖ represents an attempt to account for theadverse circumstances of inner-city black Americans. Although historicallysituated, it addresses economic inequality via extensive treatment of both supplyand demand factors.Wilson holds that black poverty today is far more a matter of class conditions thanovert racism. While the legacy of slavery and historical discrimination placed blacksat the bottom of the urban class structure by the middle of the 20th century, variouseconomic, demographic, and cultural factors have since joined to limit their mobilityprospects.In brief: Deindustrialization has created high unemployment and underemployment,while a declining tax base, due also to the flight of middle and working class peopleto the suburbs, has undermined provision of essential services (decent schools,health services, etc) within inner cities. Now lacking a substantial black middle-class, inner-city populations, in turn, reflect the ―concentration effects‖ of poverty,including a preponderance of single-parent families, drug addiction, violent crime—all of which further serve to reduce individuals’ life quality and mobility potential, aswell as diminish the likelihood of economic investment from outside sources.
  27. 27. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$social closureDemand CompleteMarxian radicalWilsonstructural
  28. 28. Supply=IndividualExtra-IndividualOccupational MonopolyPolitical Economy Industry / FirmMacro Society / EconomySocietalDemandInstitutionalLabor Process Labor Market SegmentationExternal Internal$social Darwinismhuman capitalfunctional theoryculture of povertysocial closurecultural capitalsocial capitalTotal CompleteMarxian radicalWilsonstructuralsocial reproduction
  29. 29. The End
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