Social stratification exists in all known societies and refers to the hierarchical arrangement of social categories and statuses. It can be viewed as a social structure defined by institutionalized inequality, a social process of competition and conflict, or a social problem causing disconnect. The basic components are social class, referring to socioeconomic standing, and social status, one's position within a class. A society's stratification system is influenced by social institutions and can be closed, with inherited status, or open, allowing social mobility. The Philippines has a stratification system with indigenous and colonial influences, consisting of a small upper class, emerging middle class, and large lower class, defined by factors like occupation, land ownership, and ethnicity.