Chapter 7 - Socioeconomic Status and Inequality

Question 1

Meritocracy

Answer 1

a meritocracy is a system where people are sorted based on their talent and hard work.

Question 2

Socioeconomic status

Answer 2

a person’s economic and social standing in society, usually based on their income, wealth, education, and occupation.

Question 3

Social inequality

Answer 3

the differential and unequal distribution of goods, services, resources, and power creating a hierarchical system.

Question 4

Social stratification

Answer 4

where individuals or groups are ranked hierarchically based on a set of shared characteristics, like wealth, income, status, power, or education.

• when inequality becomes ingrained in the social system it creates social stratification.

Question 5

Social stratification example

Answer 5

ex.) social classes: upper class, middle class, working class, lower class.

Question 6

Income

Answer 6

the amount of money you earn overtime.

Question 7

Income inequality

Answer 7

the unequal distribution of income among individuals or households

• measured by Gini index

Question 8

Gini Index

Answer 8

Gini index: a measure of social inequality that looks at the actual distribution of income in a country compared to an equal distribution of all income.

• Uses a scale of 0 to 1.
• Score of 0: perfect income equality, everyone has the same amount of income.
• Score of 1: perfect income inequality, all income owned by a single person.
  Higher Gini score = higher inequality.

Question 9

Gini coefficient

Answer 9

• 0.30 range

Question 10

After-tax Income by Quintile

Answer 10

• Looks at income inequality
• Divides population into quintiles (five groups).
• Calculate their share of total income, and see whether inequality changes over time.
• Income not evenly distributed
• Top quintile = increased income
• Middle quintille = decreased income
• Lower quintile = same income
• More low earning or high earning jobs, shrinking middle class jobs

Question 11

Wealth

Question 12

Wealth inequality

Question 14

What groups are most likely to own a home, and what groups are least likely to own a home?

Answer 14

• Homeownership a significant source of wealth
• Chinese and Europeans = more likely to own a home.
• Indigenous people less likely

Question 15

Who has lowest level of wealth?

Answer 15

Newly immigrated, those with no homes, lower education, disabled, African, Asian, and Middle Eastern, Indigenous