RACIAL AND ETHNIC INEQUALITY IN HOMEOWNERSHIP AND HOUSING EQUITY

Wealth inequality, particularly in housing, has received increased attention in recent years for its importance to racial and ethnic stratification. Yet, while we know a fair amount about black-white wealth inequality, many questions remain regarding sources of Hispanic asset inequality. This article addresses this gap by examining racial and ethnic inequality in homeownership and housing equity among the pre-retirement population. Results support a stratification perspective of inequality for both blacks and Hispanics; even after accounting for numerous life-cycle, resource, and social-psychological considerations, blacks and Hispanics continue to lag significantly behind whites in housing wealth. While Hispanics initially appear better off than blacks with respect to housing, this is largely a function of their more favorable family structure. Important differences between blacks and Hispanics in the main contributors to housing inequality highlight the need to take a more multiethnic perspective on wealth stratification.     

Sources of information and portfolio allocation

This research investigates the relationship between how a household receives financial information and the degree to which investment portfolios are diversified. Diversification is measured as allocation across asset classes and share of assets held in each asset class. Propensity score-based techniques incorporating stratification and weighting are employed to better isolate causal links, while also controlling for objective and subjective financial literacy and overconfidence. Results indicate that the use of financial planners and brokers is associated with an increase in asset class diversification. Households that consult with financial planners and bankers allocate their wealth systematically different from those who do not. These results highlight the role that financial professionals play in helping households make investment decisions.     

Wealth Inequality: Historical Trends and Cross‐National Differences

This article provides an overview of the recent literature on wealth inequality from a comparative and historical perspective. I first discuss how the stock, composition, and distribution of wealth changed from the 18^th century onwards. In the second part of the paper, I move on to the causal questions: What factors drive wealth inequality? Why does the distribution of wealth vary across nations? In the third and concluding section I briefly discuss the socio‐political challenges posed by increasing wealth inequality, and identify several key questions for research going forward.     

Networked heirlooms: the affective and financial logics of digital estate planning

This article outlines the emergence of digital estate planning, a new way of managing post-mortem data, considering its cultural history and political stakes. I argue that Web 2.0 logics of interaction and inclusivity, and the subsequent valorization of social data, have led to a new form of accumulation. Unlike estate planners, who are legal professionals paid to manage the finances of wealthy clientele, digital estate planners are start-up company founders who handle the digital possessions of the masses. Because digital estate planning companies are not lucrative, often providing free services, they tend to quickly fold and vanish. Communicative traces do not contain intrinsic monetary worth in isolation. They are, however, speculatively valuable in aggregate, becoming potential networked heirlooms. They provide legible personality profiles of individuals to advertisers, government agencies, and companies such as Facebook and Google. Communicative traces also contain value in their capacity to produce and maintain social networks and affective bonds. Despite the failures of digital estate planning as an enterprise, networked heirlooms point to the dual financial and affective value of personal data under late capitalism.     

We're not rich,but we're definitely not poor: Young children's conceptions of social class

Relative deprivation theory suggests that perceived socioeconomic standing has implications for multiple aspects of life. Early childhood is critical for later development and concern about effects of rising inequality on children has grown along with inequality in recent decades. However, one of the key requirements for relative deprivation to matter for child outcomes is that children must have a sense of social class and their socioeconomic standing. Because the voices of children are often lost among current debates, this paper poses two questions: 1) How do young children conceive of social class and their standing in the distribution in the context of high inequality; and 2) How do these conceptions develop over time? We conducted longitudinal, semi-structured interviews with 44 young children (ages 5–6), who attend the same three elementary schools in a small Midwestern city. By following the same children over two years, this study is uniquely able to shed light on how conceptions of class develop over time. We found that, as children got older, they increasingly associated money with differences in quality, became more likely to assign value judgements to money, and became less reliant on verbal proof of wealth. Although many children misreport their own socioeconomic standing, our findings suggest young children are aware of social class inequality and may therefore experience relative deprivation. Reducing inequality could mitigate potential implications of relative deprivation for child development.     

Risk and the welfare state

The British welfare state developed as a state-centred response to the problem of handling the risks encountered in a typical life-course. The influential work of Giddens and others implies that the traditional welfare state is under attack from two directions: a changing international politico-economic environment limits the freedom of national governments to pursue independent policies involving relatively high taxation to finance social spending. At the same time, changes in the experience of risk and declining confidence in the expertise of welfare state planners and professionals undermine support for state-centred solutions. This approach fails to acknowledge that available non-state services are often inadequate to meet many everyday life risks and that the authority of private sector advisers, insurers and professionals is also increasingly open to question. This article discusses whether people reject welfare state solutions to problems of risk in the context of research on the perceptions and behaviour of people buying or selling their homes, considering provision for long-term care needs and defrauding social security carried out by the ESRC's Economic Beliefs and Behaviour programme. Individual responses endorse the continued provision of state welfare in order to meet unprovided risks alongside disenchantment with the record of both state and private professionals and planners and awareness that state retrenchment requires greater individual responsibility for meeting one's own needs. The theory of risk society requires development to recognize that citizens are not necessarily alienated from state welfare.     

Occupational mobility and cognitive ability: A commentary on Betthäuser,Bourne and Bukodi

This commentary critiques Betthäuser, Bourne and Bukodi's (2020) paper which finds that cognitive ability does not substantially mediate class of origin effects on educational and occupational outcomes. From these results, they conclude that cognitive ability is only of minor importance for social stratification, reasserting their view of the primacy of class origins for social stratification. The central issue surrounding cognitive ability in social stratification is its effects on socioeconomic attainments vis-à-vis socioeconomic origins, not the extent that cognitive ability mediates classorigin effects. Their analytical strategy of estimating the extent that cognitive ability mediates class origineffects is misleading because: it ignores the only moderate associations of socioeconomic origins with educational and occupational outcomes; the stronger direct effects of cognitive ability; the associations of parents’ ability with their own socioeconomic attainments; and the genetic transmission of cognitive ability and other traits relevant to social stratification from parents to their children.     

Global development and precarity: a critical political analysis

ABSTRACT

Precarity as a concept has come to be conceived as a distinctive experience of neoliberal development, especially in the European context. The experience of precarity, according to some, has influenced efforts aimed at living otherwise from the precepts of neoliberal development. Yet, for others, precarity is producing a ‘new dangerous class’. However, despite different perspectives of the effects and implications of precarity, the analytical purchase and political utility of the concept has received insufficient attention. In this article, we hope to contribute to critical debates on the limitations of ‘precarity’ as a concept for critical political analysis. We argue that in the dominant use of precarity as an analytic of inequality, particular experiences are rendered as historical universals. Consequently, these (particular) experiences are disconnected from global social and political relations of inequality, while at the same time reinforcing a linear and reductionist conception of development. We demonstrate that the temporal scheme represented by the notion of the ‘age of post-Fordism’, which serves as a crucial marker of the explanatory framework of precarity (in Europe), actually misconstrues the politics of global development through inequalities. Moreover, the tendency to focus on subjectification as conditioning the formation of a ‘new’ dangerous class, entails far-reaching omissions of actual transnational political struggles against domination and inequality. Instead of precarity, a critical engagement with the politics of global development ought to be the subject of analysis for understanding contested relations of affluence, insecurity and inequality.     

What is new with old? What old age teaches us about inequality and stratification

Aging is remarkably unequal. Who survives to grow old in America and the circumstances they face once there reflect durable racial, socioeconomic, and gender inequalities that structure our lives from birth. Yet within the field of social stratification and mainstream sociology proper, examinations of the rapidly growing population of older Americans are often relegated to a “gerontological” periphery. This essay posits that the failure to place aging as a core concern in stratification and inequality is a missed opportunity. We argue for the importance of reintegrating studies on the stratification of aging and explain why such a move is necessary. Specifically, we posit that (a) examining the aging population is necessary for understanding American inequality because aging is an outcome that is ubiquitous yet highly stratified; (b) aging and being seen as “old” in a youth‐focused society are stratifying processes in their own right; and (c) later life provides for analytical comparisons that are illustrative of how key mechanisms of inequality structure and stratify. After examining insights provided by a new wave of research on the aging U.S. population, we revisit the implications for understanding inequality and stratification in a graying and unequal America.     

Health selection and the process of social stratification: the effect of childhood health on socioeconomic attainment

This study investigates whether childhood health acts as a mechanism through which socioeconomic status is transferred across generations. The study uses data from the Panel Study of Income Dynamics to track siblings and to estimate fixed-effects models that account for unobserved heterogeneity at the family level. The results demonstrate that disadvantaged social background is associated with poor childhood health. Subsequently, poor health in childhood has significant, direct, and large adverse effects on educational attainment and wealth accumulation. In addition, childhood health appears to have indirect effects on occupational standing, earnings, and wealth via educational attainment and adult health status. The results further show that socioeconomic health gradients are best understood as being embedded within larger processes of social stratification.     

Piketty's Calibration Economics: Inequality and the Dissolution of Solutions?

Abstract

By popularising interest in inequality, Thomas Piketty's Capital in the Twenty-First Century has made a significant contribution. It has helped to change the basic terms of debate regarding wealth and income. However, Capital exhibits several weaknesses. The overall statement of Piketty's 3 laws tends to confuse the reader by conflating capital with all forms of wealth, and capital with the current market valuation of wealth assets. The whole creates a form of empiricism by metrics or calibration. The aggregation also lends itself to data as history rather than as historically grounded explanation of evidence. Concomitantly, it lacks a theorisation of capitalism, of power, of the state, of social movements, and of social transformations. This affects the way in which possible solutions to inequality are conceived. However, it does provoke further grounds for ethical counterargument productive of more progressive solutions to the problems it highlights.     

The duality of world cities and firms: comparing networks,hierarchies, and inequalities in the global economy

Much of the research on globalization conceives of the global economy as structured by networks among places, while separately organizational research has examined the role of networks among firms in structuring competition, collaboration, and cooperation. In both cases, position and centrality within the network confers certain advantages and disadvantages, the distribution of which defines a hierarchy. In this article, I explore the idea of dual networks of world cities and firms, then use Breiger's approach to define two such networks: one among 313 world cities, another among 100 advanced producer service firms. Comparison of the degree of inequality in the hierarchies implied by these networks suggest that world city hierarchies are steeper than firm hierarchies (that is there is greater inequality among cities). Thus, even under conditions of footloose global capitalism, place still matters: where a producer is located has more impact than who provides support services.     

‘Globalisation’, Governance and social work: Some implications for theory and practice

Abstract

This article focuses cautiously on the implications of ‘globalisation’ for social work theory and practice. In drawing on recent debates it is argued that, despite its contested meaning, ‘globalisation’ points to a range of rapid and fundamental socioeconomic and political transformations that have impacted upon entire regions of the work. Some of these transformations are identified and analysed in terms of their consequences for transnational, national and local populations. It is proposed that the prevailing consequences of globalisation in terms of social inequality and allied modalities of governance are negative, and that this has important implications for the profession of social work. Effective strategies for confronting the challenges posed by ‘turbo capitalism’ may be found in alliances across global social movements and professional groups, including social workers. The challenges are profound.     

Missing the wealthy in the HFCS: micro problems with macro implications

Wealth aggregates implied by the Household Finance and Consumption Survey (HFCS) usually yield much lower amounts than macroeconomic statistics reported in the National Accounts. An important source of this gap may be the under-representation of the wealthiest households in the HFCS. This article therefore combines a semi-parametric Pareto model estimated from top survey data and observations from rich lists with a non-parametric stratification approach to quantify the impact of the missing wealthy households on component-specific micro-macro gaps. We find that unadjusted micro data substantially underestimates wealth inequality. The largest effects are documented for equity. For other components, the missing wealthy explain less than ten percentage points of the micro-macro gap. We find that differences in oversampling strategies limit the cross-country comparability of unadjusted survey-implied wealth distributions and that our top tail adjustment leads to measures that are internationally better comparable.

     

Marriage,Marital History,and Black – White Wealth Differentials Among Older Women

This study investigated the impact of union history and marital transitions on wealth inequality between older Black and White women (N = 7,026). Cohort data from the Health and Retirement Study show large and increasing Black – White differences in wealth. Marital and relationship histories are associated with the wealth accumulation process among older women. Women who married and stay married accumulated levels of wealth that exceeded those of other women with disrupted family lives. The marriage – wealth nexus is sensitive to a woman's position in the wealth distribution. Quantile regression results revealed that racial differences in total wealth holdings between Black and White women exist throughout the wealth distribution, whereas the relationship between current union history and wealth differentials is significant at the lower tail and middle of the distribution. Decomposition analyses highlighted the nontrivial role of racial disparities in marital histories in accounting for the racial wealth gap. As members of the baby boom generation enter their retirement years, it will be more important than ever to monitor the wealth accumulation process among older single and racial/ethnic minority women.     

Untangling the tolerance of socioeconomic inequality: Comparing Japan,the United States,South Korea,and the People's Republic of China

The last three decades have witnessed major institutional and structural transformations across both economically developed and developing countries. While many individuals and groups have benefited from these changes, they have simultaneously resulted in growing disparities between the haves and have-nots. The growing socioeconomic inequalities, however, have not been met with significant resistance and it has been even observed that people have become more tolerant of inequalities. This article explores the motivations behind tolerating socioeconomic inequality, and investigates how the tolerance of socioeconomic inequality has changed over the past 25 years, while also comparing it across very distinctive political and socioeconomic regimes. This study overcomes a gap in research by employing longitudinal, cross-sectional survey data to analyze temporal change in attitudes towards inequality. Fixed effects models are applied on five waves of World Values Survey data (1994–2020) on four distinctly different post-industrial countries: Japan, the People's Republic of China, South Korea, and the United States. The paper argues that, on an individual level, there is a tendency to accept inequality normalizing narratives and defend one's own self-interest, derived from one's structural position. This accounts for a considerable part of the variation in tolerance for socioeconomic inequality across these nations. The article concludes that trends in tolerating socioeconomic inequality have over time become more similar across these four countries with distinctly different political–economic regimes.     

Environmental Risks and Environmental Justice,Or How Titanic Risks Are Not So Titanic After All*

Some of the best‐known social scientific theories of risks are those that have been elaborated by Anthony Giddens and Ulrich Beck. Although their arguments differ greatly, they agree in seeing the technologically induced risks of today’s “Risk Society” as global—so pervasive that they transcend all socioeconomic as well as geopolitical and national boundaries. Most empirical work, however, provides greater support for a theoretical tradition exemplified by Short and Erikson. In this paper, we argue that many of the technological mega‐risks described by Giddens and Beck as “transcending” social boundaries are better described as “Titanic risks,” referring not so much to their colossal impact as to the fact that—as was the case for the majority of the victims on the Titanic—actual risks are related to victims’ socioeconomic as well as sociogeographic locations. Previous research has shown this to be the case with high‐risk technologies, such as nuclear energy and weaponry, and also with localized ones, such as toxic waste disposal. This article illustrates that the same is true even for the most genuinely “global” risks of all, namely those associated with global climate disruption.     

The Role of Father’s Occupation on Intergenerational Educational and Occupational Mobility: The Case of Second‐Generation Chinese Americans in New York1

A considerable body of research has found a positive relationship between parents’ socioeconomic status and children’s educational achievement and attainment. The predictive role of parents’ socioeconomic status generally applies for most racial and ethnic groups, but that association does not always hold for groups that exhibit high levels of education, such as Asian Americans. This article considers the role of parents’ education and occupation on children’s educational and occupational attainment for Chinese Americans aged 18–32. The results corroborate the positive link between parents’ socioeconomic status and children’s educational and occupational attainments. Children of professionals command an educational and occupational advantage over children of entrepreneurs and children of manual workers. Yet, the children of entrepreneurs attend selective colleges and obtain professional occupations in proportions closely following those of the children of professionals. Although the educational attainments between the fathers who worked as entrepreneurs and those fathers engaged in manual work were comparable, it was the children of entrepreneurs who surpassed the children of manual workers with respect to educational and occupational achievement and attainment. This suggests that immigrant entrepreneurship contributes in the upward educational and occupational mobility of the children of entrepreneurs.     

New! Improved? The Transformation of the Global Agrifood System*

Abstract The last decade has witnessed a dramatic rise in global trade in food and agricultural products. While much analysis has focused on the role of the World Trade Organization (WTO) in this process, we argue that other forms of regulation are of far greater consequence. In this paper, we examine changes in the agrifood system made possible by the WTO and we assess the rise of global private standards. We argue that the new global rules, regulations, and institutions implemented by the WTO have facilitated the ability of the private agrifood sector to consolidate and expand internationally. Of particular importance is the growing influence of food retailers as they rapidly become more global and oligopolistic. The article concludes that today it is the private sector, and retailers in particular, together with private standards that are at the center of the transformation of the global agrifood system.     

Social capital and the reproduction of economic inequality in polarized societies

This paper explores the idea that the distribution of wealth across social groups fundamentally affects the evolution of economic inequality. By providing microfoundations suitable for this exploration, this paper hopes to enhance our understanding of when social forces contribute to the reproduction of economic inequality. In tackling this issue, this paper offers contributions in two domains. First, it models social capital as a real capital asset with direct use and collateral values. Second, it extends the concepts of identity, alienation and polarization originally advanced by Esteban and Ray (Esteban, J.M. and Ray, D.: On the measurement of polarization, Econometrica 62(4) (1994), 819–851). This generalization permits us to consider the multiple characteristics that shape social identity, inclusion and exclusion. It also underwrites a higher-order measure of socio-economic polarization that permits us to explore the hypothesis that economic inequality is most pernicious and persistent when it is socially embedded. Holding constant the initial levels of economic polarization and wealth inequality, we show that higher socio-economic polarization increases subsequent income and wealth inequality. Far from being a distributionally neutral panacea for missing markets, social capital in this model may itself generate exclusion and deepen existing economic cleavages.