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Stratification in Hard Times

Title

Stratification in Hard Times

Author

Gangl, Markus

Research Area

Class, Status and Power

Topic

Social Stratification

Abstract

This essay reviews current research on the relationship between economic inequality and social stratification. Stratification, that is, the intergenerational reproduction of the distribution of incomes and socioeconomic advantage, is likely to be related to the level of economic inequality because parental incomes and wealth are important resources in families' investment in children's earnings capacity. The relationship is likely to be moderated, however, by the fact that monetary resources are not the sole family resource of importance, and by counterbalancing effects of progressive policy, notably as far as educational policy is concerned. Also, the relationship between inequality and stratification is likely to exhibit considerable time lags, and empirical analyses of contemporaneous correlations are unlikely to be informative in consequence. Owing to the substantial data requirements, few convincing empirical studies on the inequality–stratification relationship are available at present. More reliable evidence is available from studies of the relationship between inequality and educational attainment, arguably the key interim process in stratification. Here, empirical results suggest rising inequality to cause rising inequality of educational achievement, notably because well‐off families are able to increase children's attainment in the face of rising economic incentives, whereas lower income families are less able to do so. The essay concludes by suggesting key areas of future research, likely to be spurred by the increasing sophistication of analytical models and the increasing quality of available intergenerational data on earnings, incomes and socioeconomic standing.