Restricted Lorenz dominance of economic inequality in one and many dimensions

The paper investigates Lorenz dominance and generalized Lorenz dominance to compare distributions of economic status in one and several attributes. Restrictions of these dominance relations are developed that focus on central parts of the distributions and facilitate their comparison.     

Gender inequality in the one percent: A look under the hood of high incomes in Germany

Gender differences in economic outcomes are important topics in social science research. However, the study of gender differences among economic elites—“the top one percent”—has received surprisingly little attention, likely also due to a lack of empirical data. This paper investigates gender differences in individual and household income among the top one percent of individual monthly net incomes and top two percent of net household incomes using data from the German Microcensus from 2006 to 2016 covering more than 3.3 million individuals. I find that women account for only around 14% of the one percent in individual incomes. Additionally, regarding the household level, women's incomes are sufficient to achieve two percent status in fewer than 10% of all households. Both numbers did hardly change over the decade from 2006 to 2016. Furthermore, women's pathways to belonging to a high-income household are far more dependent on their partner's education and employment status than men's. Overall, the findings thus show dramatic gender differences among the German economic elite that do not narrow over time.     

Dimensions of occupational inequality and Duncan's socioeconomic index

Using the original 1962 Blau and Duncan data for white males, I compare relative amounts of inequality in the distributions of occupational prestige, earnings, autonomy, and job skills. Also assessed are the degree of status rigidity (or intercorrelations) among these four dimensions of occupational inequality and the simultaneous relations among these four dimensions in a father-to-son occupational mobility model. These findings are compared to those obtained with Duncan's socioeconomic index to determine whether additional information can be obtained when using independent measures representing the multiple dimensions of occupational inequality versus using the SEI alone. Only minor discrepancies are found, and these relate to autonomy and earnings.An earlier version of this paper was presented at the 1985 Pacific Sociological Association meetings.     

The policy significance of inequality decompositions

Economists are now familiar with ‘between’ and ‘within’ group inequality decompositions, for race, gender, spatial units, etc. But what exactly is the normative significance of the empirical results produced by these decompositions? This paper raises some basic questions about policy interpretations of decompositions that are found in the literature.     

A deprivation-based axiomatic characterization of the absolute Bonferroni index of inequality

We investigate several properties of the Bonferroni inequality index, including its welfare theoretic interpretation. We also interpret and characterize the absolute Bonferroni index as the average of subgroup average depression indices, where to each income we associate a subgroup containing all persons whose incomes are not higher than this income. An aggregate depression index for a subgroup has been derived axiomatically as the sum of gaps between the subgroup highest income and all incomes not higher than that.      

The effect of education,income inequality and merit on inequality acceptance

A large number of observational and experimental studies have explored the determinants of individual preferences for redistribution. In general, inequalities are more likely to be accepted by people of higher socioeconomic status, in richer societies and when inequalities are perceived as justifiable owing to differences in productivity. Almås et al. (2020) show that in a relatively unequal society (the United States), the highly educated accept inequality significantly more than the less educated, whereas, in a relatively equal society (Norway), the less educated accept inequality more, but not significantly more, than the highly educated. Here, we replicate this finding using data from experiments conducted in four locations across three countries all distinct from the ones studied by Almås et al. However, a closer look at the data indicates that the origin of the interaction effect varies depending on which societies one compares. Data for Norway and the United States indicate that meritocratic values among the highly educated are less prevalent in more equal societies and that this is the driver of the triple interaction effect. In contrast, in our data the interaction effects have multiple drivers.     

Physical capital and the embodied nature of income inequality: gender differences in the effect of body size on workers' incomes in Canada

This study assesses the effects of body size--measured using the body mass index--on the income attainment of female and male workers in Canada. Using data from a national representative sample of Canadians, multivariate analyses show that, for female workers, the body size-income relationship is negative. However, for male workers, the body size-income relationship is positive and nonlinear. Using Bourdieu's conceptualization of physical capital, and Shilling's extension of it, it is argued that these results are suggestive of the relative importance of body size to the production and continuation of gender income inequality in Canada.     

The effect of children on male earnings and inequality

This study investigates the effect of children on male earnings and how earnings inequality among men arises over the life cycle. We use panel register dat     

The economic marginality of ethnic minorities: an analysis of ethnic income inequality in Singapore

This paper examines ethnic income inequality in Singapore from the perspectives of labour‐market segmentation and human capital. The findings of this study show that neither perspective is useful in explaining ethnic income inequality in Singapore. Further, the analysis shows that educational differences among the Chinese, Indians and Malays account for very little of the income gap. Much of the income difference is due to discrimination. The source of this discrimination lies in the segregation of ethnic minorities in lower‐paying jobs and occupations across all industries, reflecting Chinese domination in the economic and political spheres.     

Judgment of distributional inequality in networks

Why is income inequality perceived and judged differently across a society? Following the social comparison theory, one reasonable explanation suggests that individuals are exposed to different local reference groups in social networks. We design a vignette experiment to study how income distributions are judged by individuals structured in networks. The experiment shows that perceptions of distributional inequality are high when network ties are unequally distributed across individuals, suggesting that network inequality contributes to distributional inequality. Beyond the network effect, inequality judgment is found to be driven by a mix of self-interest and other-regarding preference: people are in favor of group-beneficial income distributions wherein they rank high, but not extremely high, in the group. It shows that people care about not only their relative affluence, but also where others stand in the distribution.     

The impact of changing union density on earnings inequality: Evidence from the private and public sectors

The degree of inequality in U.S. earnings has varied considerably over the past 20 years, including a dramatic, much documented rise since 1980. We examine empirically how changes in union density have contributed to these trends, using Current Population Survey data for 1977 and 1992. Inequality is measured as the mean logarithmic deviation of individual earnings from overall average earnings. A decomposition of the change in the inequality index reveals that decreases in private-sector union density have accounted for about 25 percent of the overall rise in earnings inequality during the past 15 years. Decompositions based on public-sector earnings indicate that increases in union density have produced inequality that is 29 percent below what it otherwise would have been. The analysis demonstrates that, among private sector workers, the results are sensitive to the population being studied: Changing union density accounts for 13 percent of the rise among prime aged males (a noticeably smaller fraction than found in existing studies) and only 4 percent among females and non-prime-aged males. The analysis also demonstrates that covariances between the subsamples explain why the union effect is larger in percentage terms for the whole sample than it is in either subsample.     

The white native speaker and inequality regimes in the private English language school

Private English language schools market the language as a tool that helps one connect with others from different cultures. Despite their promotion of English aiding in intercultural communication, these institutions may believe that only the white native speaker is the ideal teacher of the language. This valuing of the white native speaker can consequently act as an organisational inequality regime that marginalises nonwhite teachers. Using qualitative interviews with 10 nonwhite instructors working in schools in Toronto, Canada, this article investigates the ways in which these teachers experience the inequality regime of the white native speaker at work. The findings indicate that the teachers experience this inequality regime as a series of microaggressions that involve space, competence and customer desire. The article concludes with suggestions to dismantle inequality regimes in private institutions.     

Social inequality and the sociology of work and occupations

Although occupation for a long time played a central role in sociological research on inequality, today it is only one topic among others. In spite of this development, this article asks whether sociology has abandoned the topic of occupation too soon. Based on a theory of functional differentiation supplemented with some arguments concerning the sociological concepts of stratification and individualization, this article presents a new possibility of analysing the problem of social inequality focusing on the forms occupation and organization in modern society.     

Class inequality and meritocracy: a critique of Saunders and an alternative analysis

Saunders' recent work claiming that contemporary British society is to a large extent 'meritocratic' is criticized on conceptual and technical grounds. A reanalysis of the National Child Development Study data-set, used by Saunders, is presented. This reveals that while merit, defined in terms of ability and effort, does play a part in determining individuals' class destinations, the effect of class origins remains strong. Children of less advantaged class origins need to show substantially more merit than children from more advantaged origins in order to gain similar class positions. These differences in findings to some extent arise from the correction of biases introduced by Saunders; but there are also features of his own results, consistent with those reported in the reanalysis, which he appears not to have fully appreciated.     

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.     

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.     

Cognitive and non-cognitive traits and the intergenerational transmission of socioeconomic inequality

This paper studies the roles of cognitive and non-cognitive characteristics in a standard Roemerian Inequality of Opportunity (IOP) model. Using Australian microdata, we model the effects of individuals’ backgrounds and their psychological traits on two adult income variables. We find that measurable psychological traits (intelligence, locus of control, big five personality traits) are slightly more important than background characteristics (such as race, gender, social class at birth) in explaining income disparities. However, the fraction of IOP confounded by psychological factors is small (11%–12%), which suggests that background inequalities do not meaningfully reflect differences in cognitive or non-cognitive ability.