Social stratification describes a system where the society or community ranks groups of people in a type of hierarchy (Cole, 2019). In the country, it is evident that certain groups have more wealth, status, and power in comparison to other groups. However, social stratification describes the characteristics of a group of people or society and is not just a description of individual differences. Also, social stratification may continue over several generations. Furthermore, the system is universal and happens across all societies globally. Moreover, social stratification is not only based on inequality but also in beliefs. Structural functionalists argue that inequality is a “necessary evil” that assists in the effective management of a society (Cole, 2019). Additionally, they argue that different compensation and rewards motivate people to work harder. It is crucial to evaluate how different forms of inequality have reinforced social stratification. Some of the inequalities are based on social class and race.
Class
The American society has hierarchical groups of people that are based on income, wealth, occupation, social network, education, or subculture. However, most people believe that the American society is based on wealth and income distribution. Wealthy people have better access to education, health, and other needs in comparison to poor people. Wealth distribution is the most accurate technique for identifying inequality and social stratification. Wealth distribution is quite unequal in the US because the top 1% control more than 40% of the American economy (Cole, 2019). Furthermore, the wealthy own approximately 50% of all mutual funds, stocks, and bonds (Cole, 2019). On the contrary, the bottom 80% in the US controls only 7% of the US economy, while the bottom 40% do not possess any wealth (Cole, 2019). Wealth inequality has grown extreme over the past three decades that it is now the highest inequality in America’s history (Cole, 2019).
Delegate your assignment to our experts and they will do the rest.
Figure 1 showing income distribution in the US (Cole, 2019).
Wealth distribution has grown rapidly such that it is difficult to distinguish the poor from some of the middle class. Income distribution is also an effective technique of showing social stratification. Figure 1 shows data collected from the US Census Bureau in 2012, and it indicates the income distribution according to household. It also shows that most American households are clustered in the lower end, and their income ranges between $39000 and $10000 per year (Cole, 2019). The median income in American households is $51000 (Cole, 2019). Additionally, approximately 75% of all American households earn less than $85000 annually. Figure 1 also indicates that the number of households decreases with increasing income. Approximately 4% of American households earn more than $200000 per year. Currently, there are approximately 14.5% of the American population or 45 million Americans living in poverty (Cole, 2019).
Notably, there are three factors affecting wealth and income distribution in the US: gender and education. Although the gender wage gap has decreased significantly over the past three decades, women earn 78% of a man’s dollar (Cole, 2019). According to the 2013% Census report, men working full time have a median pay of $50033, while women working full time had a median income of $39157 (Cole, 2019). Some of the reasons for the gender wage gap include women being selected for low-income paying fields and position than men and that women are less likely to advocate for promotions and raise in comparison to men (Cole, 2019). Additionally, the gender wage gap exists across paygrades, fields, and positions. The gender wage gap also occurs when parents are compensating their children after doing chores (Cole, 2019).
Figure 2 showing the income inequality between Americans with and without a college degree (Cole, 2019)
Educational attainment has a significant impact on income and wealth. Research shows that Americans with a college degree or higher tend to be approximately four times wealthier than average Americans (Cole, 2019). Additionally, those with a college degree tend to be 4.5 times wealthier than those holding a two-year degree (Cole, 2019). Ultimately, American who did not proceed beyond their high school diploma experience a significant economic disadvantage in the country. Additionally, Americans with a high school have 12% wealth in comparison to Americans on the high end of the education attainment (Cole, 2019). Figure 2 shows that educational attainment significantly influences people's income, and the income inequality is highly likely to continue increasing. The graph shows that Americans with a college degree have a median income of approximately $45500 in comparison to “some college” who earn approximately $30000 (Cole, 2019). All in all, Americans with a college degree earn approximately 52% higher income than those with “some college” degree (Cole, 2019).
Racial Inequality
There is significant racial inequality among African American, White, Hispanics, and Asian households. The disparity is quite high, especially when comparing black and white households. Approximately 66% of African Americans do not have financial assets in comparison to only 33% of whites (Smelser, Wilson, and Mitchell, 2011, 15). Home ownership is also a significant determinant of wealth portfolio among American families. Homeownership among whites is 20% higher in comparison to blacks (Smelser, Wilson, and Mitchell, 2011, 15). Furthermore, there is discrimination in securing home ownership, and it has influenced how assets and equity are developed and accumulated. Moreover, most blacks live in areas where there is less demand, and their equity is low (Smelser, Wilson, and Mitchell, 2011, 15). Home ownership is a core issue in wealth accumulation because it affects future generations.
It is critical to note that similar discrepancies between Hispanics and Whites. Although Hispanics have higher wealth than blacks, it is still less in comparison to Whites (Smelser, Wilson, and Mitchell, 2011, 15). Additionally, there is a significant difference between US-born Hispanics and recent immigrants, especially from Central America. Furthermore, there is a significant difference caused by region and birth among Hispanic groups. For instance, Cuban Americans have similar wealth to Whites because they tend to own medium-sized and small businesses in their ethnic economies (Smelser, Wilson, and Mitchell, 2011, 15). US-born Asians tend to net financial assets and net worth similar to that of whites because recent immigrants tend to be from wealthy families. Additionally, most of them study in STEM fields that allow them to earn a high income and build wealth (Smelser, Wilson, and Mitchell, 2011, 15).
Figure 3 showing the college completion rate (Cole, 2019)
Racial inequality also affects education and income distribution. As mentioned earlier, there is a close link between economic wellbeing and educational attainment. Figure three shows that approximately 60% of Asians have a college degree in comparison to 15% for Hispanics, 23% for Blacks, and 40% for Whites (Cole, 2019). Although educational attainment has generally increased in the American population, especially among Hispanics, Blacks, and Whites, it is crucial to note that Latinos and Blacks face significant discrimination from Kindergarten to University (Cole, 2019). Ultimately, it affects their attitude towards higher education.
Figure 4 showing median income by race
The essay has already established a close link between income distribution and educational attainment. It is not surprising that races with higher educational attainment tend to have a higher income. Asian households have a median income of approximately $67065 in comparison to whites at $58270, and Blacks at $34598 (Cole, 2019). Furthermore, it is crucial to note that racial income inequality is not influenced by education alone. Even after all races have had equal educational attainment, Whites tend to be evaluated more favorably than Latinos and Blacks (Cole, 2019). Studies indicate that some employers prefer selecting White applicants less competitive colleges than Blacks from prestigious colleges (Cole, 2019). Furthermore, Black candidates are highly likely to be given lower paid positions and status in comparison to Whites (Cole, 2019). In fact, some employers would prefer a White employee with a criminal past than a Black employee with a clean record (Cole, 2019).
Figure 5 showing the average family wealth by race
The racial income inequality has significantly affected wealth distribution in the American economy, as shown in figure five. White households are up to six and seven times wealthier than Hispanics and Blacks. The income inequality was established quite early during slavery, where Blacks were barred from earning income and generating wealth and were only supposed to create wealth for whites (Cole, 2019). Additionally, many immigrant and native-born Latinos have historically experienced wage exploitation, slavery, and bonded labor (Cole, 2019).
Conclusion
The essay has established that the most common social stratifications in the American society are reinforced by social class and racial inequalities. Furthermore, the inequalities are caused by discrepancies in education attainment and income distribution. Due to the country’s history, the society has favored Whites at the expense of Latinos and Blacks. Additionally, White families have accumulated wealth over several generations in comparison to other races. Americans who have a college degree earn at least 50% more than Americans with “some college” degree. Also, men working full time tend to have a higher median income than women who are working full time. All in all, the income and racial inequalities have built and reinforced the social stratification in the American society.
References
Cole, N. L. (2019, July 03). In Pictures: Understanding Stratification by Class, Education, Gender, and Race. Retrieved July 8, 2019, from https://www.thoughtco.com/visualizing-social-stratification-in-the-us-3026378
Cole, N. L. (2019, April 14). The Way People Are Ranked and Ordered in Society. Retrieved July 8, 2019, from https://www.thoughtco.com/what-is-social-stratification-3026643
Smelser, N. J., Wilson, W. J., & Mitchell, F. (2011). America Becoming: Racial trends and their consequences. Volume II. Washington, DC: National Academy Press.
