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Chapter 8: Social Inequality

Photo of Elon Musk driving a car.
Figure 8.1 Tesla founder Elon Musk was the richest person in the world in 2021 (Pendleton, 2021). While many, including Musk himself, have portrayed the billionaire as ‘self-made,’ rarely do such folk admit to the web of supports that help account for their economic fortune including access to education, loans and support from friends and family, R&D grants, and the low-wages and poor conditions of workers. Recently, debate has begun about whether ‘Billionaires should exist?‘. (Photo courtesy of kqedquest/Flickr.) CC BY-NC 2.0

Introduction to Social Inequality

Two people in business attire on an escalator
Figure 8.2 Consider the manner in which social differentiation connect to not just access to material resources but also other resources such as political influence. (Photo courtesy of Alex Proimos/Flickr.) CC BY-NC 2.0

Sociologists use the term social inequality to describe the unequal distribution of valued resources, rewards, and social positions in a society. Key to the concept are the notions of social differentiation and social stratification. The question for sociologists is: how are systems of stratification formed? What is the basis of systematic social inequality in society?

Social differentiation refers to the social characteristics — social differences, identities, and roles — used to differentiate people and divide them into different categories, such as class, occupation, and education. These social categories have implications for social inequality. Social differentiation by itself does not necessarily imply a division of individuals into a hierarchy of rank, privilege, and power. However, when a social category like class, occupation, gender, or race puts people in a position where they can claim a greater share of resources or rewards, then social differentiation becomes the basis of social inequality.

The term social stratification refers to an institutionalized system of social inequality. It refers to a situation in which social inequality has solidified into an ongoing system that determines and reinforces who gets what, when, and why. Social differentiation based on different characteristics becomes the basis for social inequality.

Students may remember the word “stratification” from geology class. The distinct horizontal layers found in rock, called “strata,” are a good way to visualize social structure. Society’s layers are made of people, and society’s resources are distributed unevenly throughout the layers. The people with the most resources represent the top layer of the social structure of stratification. Other groups of people, with progressively fewer and fewer resources, represent the lower layers of society. Social stratification assigns people to socio-economic strata based on a process of social differentiation — “these types of people go here, and those types of people go there.” The outcome is differences in wealth, income and power. Again, the question for sociologists is how systems of stratification are formed. What is the basis of systematic social inequality in society?

Equality of Condition and Equality of Opportunity

A hill in the badlands showing geological stratification
Figure 8.3 Strata in the badlands illustrate social stratification. People are sorted, or layered, into social categories. (Photo courtesy of Just a Prairie Boy/Flickr.) CC BY 2.0

In Canada, the dominant ideological presumption about social inequality is that everyone has an equal chance at success. This is the belief in equality of opportunity, which can be contrasted with the concept of equality of condition. Equality of opportunity is the idea that everyone has an equal possibility of becoming successful. It exists when people have the same chance to pursue economic or social rewards. This is often seen as a function of equal access to education, meritocracy (where individual merit determines social standing), and formal or informal measures to eliminate social discrimination.

Equality of condition is the situation in which everyone in a society has a similar actual level of wealth, status, and power. Although degrees of equality of condition vary markedly in modern societies, it is clear that even the most egalitarian societies today have considerable degrees of inequality of condition.

Ultimately, equality of opportunity depends on some degree of equality of condition. If conditions are unequal those with wealth and power can use these assets to secure their position (and those of their children) and those without such assets find it hard to access education, have the time to search for new opportunities, or even keep themselves physically and mentally healthy. Whether Canada is a society characterized by equality of opportunity, or not, is a subject of considerable sociological debate.

While there are always inequalities between individuals in terms of talent, skill, drive, chance, and so on, sociologists are interested in larger social patterns. Social inequality is not about individual qualities and differences, but about systematic inequalities based on group membership, class, gender, ethnicity, and other variables that structure access to rewards and status. In other words, sociologists are interested in examining the structural conditions of social inequality. There are of course differences in individuals’ abilities and talents that will affect their life chances. The larger question, however, is whether inequality is systematically structured in economic, social, and political life. In terms of individual ability: Who gets the opportunities to develop their abilities and talents, and who does not? Where do definitions of “ability” or “talent” come from? As Canadians live in a society that emphasizes the individual (individual effort, individual morality, individual choice, individual responsibility, individual talent, etc.) it is often difficult to see the way in which life chances are socially structured.

Wealth, Income, Power and Status

A neighbourhood in San Franscisco
Figure 8.4 The people who live in these houses likely share similar income levels and education. Neighbourhoods often house people of the same social standing. Typically, wealthy families do not live next door to poorer families, though this may vary depending on the particular city and country. (Photo courtesy of Orin Zebest/Flickr.) CC BY 2.0

Factors that define the layers of stratification vary in different societies. In most modern societies, stratification is indicated by differences in wealth, the net value of money and assets a person has, and income, a person’s wages, salary, or investment dividends. It can also be defined by differences in power (e.g., how many people a person must take orders from versus how many people a person can give orders to, or how many people are affected by one’s orders) and status (the degree of honour or prestige one has in the eyes of others). These four factors create a complex amalgam that defines an individual’s social standing within a hierarchy. Sociologists use the term status consistency to describe the consistency of an individual’s rank across these factors.

Students can also think of someone like the Canadian Prime Minister — who ranks high in power, but with a salary of approximately $320,000 — earns much less than comparable executives in the private sector (albeit eight times the average Canadian salary). The Prime Minister’s status or prestige also rises and falls with the fluctuations of politics and public opinion. The Nam-Boyd scale of status, based on education and income, ranks politicians (legislators) at 66/100, the same status as cable TV technicians (Boyd, 2008). There is status inconsistency in the prime minister’s position.

Teachers often have high levels of education, which give them high status (92/100 according to the Nam-Boyd scale), but they receive relatively low pay. Many believe that teaching is a noble profession, so teachers should do their jobs for the love of their profession and the good of their students, not for money. Yet no successful executive or entrepreneur would embrace that attitude in the business world, where profits are valued as a driving force. Cultural attitudes and beliefs like this support and perpetuate social inequalities.

 

Additional Optional Resources

Social Class, Inequality & Poverty: Meritocratic Myths & the Role of Class by Alexia Brown, Akhila Boda, Jing Zhang, Dr. Christian Schlaerth, and Todd Schoepflin

In this podcast, the speakers discuss the intricate web of social class inequality and its impact on poverty. They critically address the over-looked realities of meritocracy, revealing how it often masks the systemic barriers that contribute to social disparities. They also explore the role of class in shaping life experiences and opportunities while challenging the idea that success is solely based on individual effort.

In Inequality Inevitable? by George Zaidan and Natália Andrade

Income and wealth inequality is not a contemporary phenomenon; it has existed throughout history. Economists and historians studying social disparities have identified that no society has ever been completely free from inequality. This observation prompts a fundamental question: is inequality an inevitable aspect of human society? In this video, various methods for measuring economic inequality are examined and how different governmental policies influence those inequalities are analyzed.

How Economic Inequality Harms Societies by Richard Wilkinson

In this TED Talk, Richard Wilkinson discusses the profound effects of income inequality on societal well-being. He presents evidence that more unequal societies experience higher rates of social issues, including crime, poor health, and lower educational outcomes. He argues that inequality erodes trust, weakens community ties, and leads to a range of social problems. By highlighting data from various countries, he makes a compelling case for tackling economic disparities to improve overall quality of life and promote healthier, more cohesive societies.

Section Summary

8.1 Systems of Stratification

Social inequality is defined by the unequal distribution of valued resources, rewards, and social positions in a society. Key to the concept are the notions of social differentiation–the social characteristics used to differentiate people–and social stratification–the institutionalized systems that maintain and perpetuate social inequality. Stratification systems are either closed, meaning they allow little change in social position, or open, meaning they allow movement and interaction between the layers. A caste system is a closed system in which social standing is based on ascribed status or birth. Class systems are open, to a degree, with individual achievement playing a role in social position. A debate exists between Marxist and Weberian sociologists about whether class is best understood as a structure based on a group’s relationship to the ownership of the means of production or as a multi-dimensional variable based on factors like wealth, income, education, status, and occupation.

8.2 Social Inequality

Standards of living range from extreme wealth to absolute poverty–an inability to meet basic needs for survival–and relative poverty–an ability to participate in the ordinary activities of a society. Sociological research into inequality shows that the gap in income and wealth between the rich and the poor has been increasing in Canada over the last 40 years. In a comparative perspective, the Gini Index measure of inequality shows that Canada’s level of inequality is much higher than many European countries but is lower than the United States and Mexico.

8.3 Social Classes in Canada

There are three main classes in Canada: the owning class, middle class/traditional working class and the working poor/underclass. Social mobility describes the ability of people to shift from one social class to another, but even in open class societies research shows that people tend to remain in the classes they were born into. Class background significantly affects one’s chances to get ahead.

8.4 Theoretical Perspectives on Social Inequality

The increasing social inequality of the last four decades can be examined from different sociological perspectives — functionalism, conflict, and interpretive sociology. The functionalist perspective states that inequality serves an important function in aligning individual merit and motivation with social position. Conflict sociologists observe that class power accounts for the increasing wealth of the owning class over the last 40 years. Interpretive sociologists examine how social inequality is communicated at both micro-level and macro-levels in society. They observe how social standing affects people’s everyday interactions, particularly the tendency to use rituals of deference and interact with people of like status, and how social class is constructed and maintained through cultural capital and conspicuous consumption.

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Introduction to Sociology Copyright © 2025 by Janice Aurini is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.