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# What is Social Inequality? ## Defining Social Inequality - Differences in levels of income - Differences in levels of resources - Differences in levels of power - Differences according to our characteristics (gender, ethnicity and age) - Differences in levels of status - Differences in levels of...

# What is Social Inequality? ## Defining Social Inequality - Differences in levels of income - Differences in levels of resources - Differences in levels of power - Differences according to our characteristics (gender, ethnicity and age) - Differences in levels of status - Differences in levels of social capital - Differences in levels of social inclusion and exclusion - Differences in our vulnerabilities in times of crisis ## Key Learning Outcomes By the end of this chapter, you should be able to: - Define the concept of social inequality - Explain how many different types of social inequality exist - Understand both the theoretical and ideological positions associated with explaining inequality. ## Overview of the Chapter This chapter considers the concept of social inequality in critical depth, exploring it as a complex issue that is not always taken for granted within contemporary politics but is one that remains present in many varieties and forms. The chapter outlines a range of definitions associated with social inequality, provides examples of inequality and offers learning tasks to help you explore your own understandings and ideas. It also explains how ideological views inform perceptions of inequality to facilitate understandings of why some think that inequality matters more than others do. ## Conceptualising Social Inequality The world in which we live is unfair, unequal and full of inequality, with a mass of evidence available to detail the myriad ways in which this is the case, as well as the social divisions that exist within society underpinning such inequalities. Despite the existence of this evidence much debate takes place both politically and academically in relation to how we conceptualise inequality. Inequality can be conceptualised using socio-economic frameworks measuring differences in income levels. This is just a single measure of inequality but one that is now closely associated with social inequalities in terms of outcomes (Ortiz and Cummins 2011). The box below provides different examples of what inequality might mean. ## Learning Task 1.1 How does my current context determine my views on social inequality? We live in a world that is very unequal and there are many different faces of inequality. Some groups are wealthy, healthy and have access to education and good jobs; others are faced with poverty, ill health and unemployment. Where do you fit? What is your social position? Is this different from the social position of previous generations of your family? Think about the social norms of contemporary society and how they determine your views. How do these norms affect what you construct as 'needs'? Are these constructions different from those of previous generations of your family? ## Table 1.1: Dimensions of Social Inequality | Type of inequality | Example evidence | | ------------------- | ------------------- | | Different levels of income | In 2018, households in the UK bottom 20% of the population had on average an equivalised disposable income of £12,798, whilst those at the top 20% had £69,126 (The Equality Trust 2019). | | Differences in levels of resources | Globally, 785 million people lack access to a basic drinking-water service, and at least 2 billion people use a drinking water source contaminated with faeces, risking disease and death as a result (WHO 2019). | | Different levels of power | Some groups of people are socially silenced within many countries, for example, homosexuals within several African countries. The Trump administration weakened the rights of LGBTQI+ groups at the beginning of 2021 (Human Rights Watch 2021). | | Different levels of status | Some groups have a lower social status than others and this results in a range of different outcomes for them. For example, in India the Dalits are classed as untouchable and face discrimination and social exclusion as a result of their status. In the UK Traveller and Gypsy communities face significant discrimination. | | Different levels of social capital | Access to different networks of power results in unequal outcomes. For example, many companies rely upon their networks to recruit board members, which excludes many people including women (Kandola and Kandola 2019). | Dorling (2018). Defining these differences and examining them in relation to what we need is complex, and for many living in high-income countries, our expectations are increasingly growing in line with changing social norms. Complete the following learning task, which will help you to think about how you construct your needs. Do you have a particular social characteristic that influences your views? For example, is your life more determined by your gender or ethnicity? How do the different characteristics you have influence your life chances? Think about the ways in which some characteristics can combine to give you more advantage (or not?) and if there have been any societal changes in relation to these over time. ## Table 1.2: Global comparisons in income and inequality measures | Country | Gross domestic product (2019) measured in millions of US dollars | Human Development Index (2020) | Planetary pressures index (2020) | | -------- | --------------------------------------------------------- | ------------------------------ | ------------------------------------ | | Tuvalu | 47.27 | No data | No data | | Malawi | 7,666.70 | 0.483 | 0.481 | | Iceland | 24,188.04 | 0.949 | 0.768 | | Italy | 2,003,576.15 | 0.892 | 0.792 | | United Kingdom | 2,829,108.22 | 0.932 | 0.825 | | United States | 21,433,226.00 | 0.926 | 0.718 | (Sources: UNDP 2020; World Bank 2019a) ## Measuring Social Inequality There isn't a single correct way to measure any concept, hence the huge range of debate within the academic literature about how to measure social inequality. As a result, there are many different measures of inequality discussed within both academic and policy circles, and you have already seen some examples in Table 1.1. The box below provides an overview of a range of measures that can be used, but this is by no means exhaustive as new approaches are often in development. - Using poverty lines - Examining incomes/looking at wages/employment and unemployment figures - Comparing growth (e.g. in wages, incomes, gross domestic product) - Comparing human development - Measuring wealth - Using tools such as the Gini coefficient and the Palma ratio - Examining spending power and disposable income - Looking at social exclusion and social cohesion - Looking at political participation and levels of democracy - Examining social divisions and the implications of these - Measuring wellbeing The box illustrates that there are many ways in which we can quantify and indeed measure inequality. Policy makers have tended to focus upon inequalities within specific contexts; for example, gender and poverty have long been examined within international development. Each measure presents a different picture, has some limitations and is accompanied by a specific narrative (Green 2016). ## Using Poverty Lines Poverty is widespread in many parts of the world, within both high- and low-income countries. Poverty is most often measured according to monetary terms. There are absolute measures of poverty and relative measures. Absolute poverty refers to a set standard (usually income) that can be used to measure poverty across countries and time. The World Bank (2020a) reported that in 2017, an estimated 9.2 percent of the global population (or 689 million people) lived below the international poverty line of $1.90 a day. However, the COVID-19 (coronavirus) pandemic was expected to push between 88 million and 115 million more people into extreme poverty during 2020. Poverty lines are of course open to debate. Do they underestimate the actual extent of poverty (United Nations 2009)? What about the context in which poverty is occurring because standards of living vary: can a line measure this? Furthermore, whatever line is used this is essentially an arbitrary measure (Mack 2016). Despite the problems associated with using poverty lines, the World Bank (2020a) argues that measurement remains essential to develop reduction strategies. In comparison, relative poverty is a standard used within countries and it is a standard that no one should fall beneath. Relative poverty is measured against a figure. Davis et al. (2020) published minimum income figures needed to reach a socially accepted standard of living in the UK as follows: In order to reach a minimum socially acceptable living standard in 2020, a single person needs to earn £19,200 a year. A couple who have two children each need to earn £18,700. The authors note that the cost of the minimum standard of living can fall, and that this research was completed before the first UK lockdown in March 2020. Furthermore, what is considered part of the minimum is reflective of societal changes, thus a Netflix or similar subscription and children's social participation (residential school trips) are now viewed as necessary. ## Examining Incomes at Country Level Global inequality can be measured by comparing the average incomes of different countries, usually based on the gross domestic income of each nation (see Table 1.2). This definition, however, fails to measure and examine inequality within countries, and it does not accurately portray inequality across the world by failing to take account of the population size of the countries being compared to each other. As a result of countries having unequal population sizes, increases in income have different effects, especially if a nation is highly populated (Milanovic 2006, 2007; Yates 2016). Furthermore, such an approach is unable to account for those who work in the informal economy, which is unregulated and untaxed. Many people work informally when they are unable to find other employment, experiencing poorer conditions and higher income inequality (Elveren and Ozgur 2016).. Global inequality can also be measured by accounting for the population of each country. This measures the variables of gross domestic income and population size. This approach to calculating global inequality remains popular because little data is needed to make the calculations and the relationship can be shown in an equation called the Gini coefficient of national income distribution. The third measure of global inequality is one that accounts for in-country differences in terms of individual incomes. Such data is often drawn from household surveys reporting disposable income because these are the only source of information from which individual income distribution can be calculated. However, a global survey of households does not occur, therefore the only way to calculate this third measure of inequality is by comparing data from individual countries' surveys. This is also problematic because there are differences between gross domestic income and disposable income in terms of how these are defined within individual countries (Milanovic 2006). ## Comparing Economic Growth Another way in which inequality is examined is via gross domestic product (GDP), used earlier in Table 1.2. GDP refers to the total value of both goods and services produced within an economy over a specific duration (usually over a year). If an economy is growing, then GDP will increase. GDP is the main measure used within the UK to document growth or stagnation. Using GDP as a measure, the world economy saw a sharp decline in growth as a result of the COVID-19 crisis. The UK's GDP was already 9.6% less than in 2019; across the compared Eurozone GDP was 4.3% less; and in America there had been a 2.9% reduction. However, these figures should again be treated with caution because statisticians in different countries used different approaches to calculating outputs (House of Commons Library 2020). Further criticisms of GDP measures note the exclusion of provision such as government and digital services and its inability to measure living standards (The Economist 2016a). ## Comparing Development The human development index is another way in which inequality can be measured (again see Table 1.2 for example comparisons). The index measures a range of dimensions (e.g. health, education and living standards) to assess how countries are progressing in development terms. This is a broader measure than other economic approaches, because it was created to capture both people and their capabilities (UNDP 2016), and now includes a focus upon the planet's environment (UNDP 2020). Wellbeing is now also considered an important aspect of development (OECD 2013). UK research shows that the net financial wealth of households appears to be the type of wealth most strongly associated with personal wellbeing, so life satisfaction is higher in households with greater net financial wealth (ONS 2015). However, counter-arguments suggest that countries with the highest income do not necessarily have higher levels of wellbeing. Other studies show that increases in income do not equate to improved wellbeing in the longer term because of a range of psychological factors that are also influential (W. Davis 2017). UK wellbeing was detrimentally affected by the impacts of COVID-19 in 2020, with assessments of life satisfaction being subdued, and concerns about income impacts being documented (ONS 2020a). The ecological footprint left by countries is also an interesting measure as some are much more environmentally damaging than others (UNDP 2020), which has long-term implications for health, wellbeing and economic sustainability (Global Footprint Network 2016). Therefore, it is worth making the point again that just because a country performs well according to one criteria or measurement this does not mean it is without problems. ## Looking at Wages In some countries data is available in which people's wages can be compared nationally and locally to illustrate the differences in income that people are able to achieve (see the earlier example in Table 1.1). Income inequality refers to the way in which income is distributed unevenly throughout the population, and in many contexts, this is increasing. Concerns about income inequalities are now well documented in many countries as a result of the impact of COVID-19. Blundell et al. (2020) highlight that most people in the bottom 10% of the earnings distribution in the UK work in sectors that were forced to shut down. The closure of schools and childcare provision also disproportionately impacted upon female workers. There are likely to be many more longer-term impacts on income inequality, leaving many households in a precarious position. Inman (2020) points out that UK households in higher income brackets used the first lockdown to reduce their spending, and increase savings, consolidating their already advantageous position. ## Measuring Wealth The richest 1% of the world now have more wealth than the rest of the world's population combined (Oxfam 2018) and a 2018 Oxfam Report stated that 82% of the wealth created in 2017 went to the top 1% of the world's population; therefore, wealth is very much concentrated in the hands of only a few. Increasingly media reports illustrate that the rich are able to hide their wealth in tax havens (Hickel 2016a). Growing wealth is used frequently to illustrate the problem of social inequality, with data showing that the rich are getting richer. For example, there is a growing wealth gap between older and younger generations, with young people today more likely to be poorer than in previous years (Swanson 2015). Furthermore, in the US, those who are rich are still getting richer, as demonstrated by figures showing that the wealthiest 10% of the population control three-quarters of all family wealth (Sahadi 2016). In 2020, the COVID-19 pandemic which led to destitution for many, enabled those who are the richest to increase their wealth as they benefited from stock market investment (Neate 2020). ## Looking at Social Exclusion 'Social exclusion' is another term strongly related to inequality and encompasses more than just a narrow focus on income. Levitas et al. (2007: 9) define social exclusion in the following way: Social exclusion is a complex and multi-dimensional process. It involves the lack or denial of resources, rights, goods and services, and the inability to participate in the normal relationships and activities, available to the majority of people in a society, whether in economic, social, cultural or political arenas. It affects both the quality of life of individuals and the equity and cohesion of society as a whole. Three domains of social exclusion are noted by Levitas et al. (2007: 117), relating to: - Material and economic, access to services (both public and private) resources - Social resources; - Participation – economic (i.e. usually via work), social, education and political participation (i.e. voting); - Quality of life - health and wellbeing, the environment in which you live and crime levels in the area in which you live. ## Defining Intersectionality - Each person has their own experience of discrimination - Each person's characteristics work to marginalise them in some way - Each person's oppression is affected by interconnected social divisions - We need to consider all overlapping systems, structures and categories when examining social inequalities (e.g. gender, ethnicity, class, sexual orientation, physical ability, social status, health and wellbeing etc.) ## Learning Task 1.2 Measuring experiences of social inequality in relation to COVID-19 1. Revisit the measures of social inequality described in this section of the book. Use the internet and other resources to explore additional measures such as the Gini coefficient, the Palma ratio and spending power. 2. Now make a list of all of the aspects of social inequality that you can think of (e.g. income inequality, poverty, other related deprivations such as food poverty, fuel poverty, social exclusion, digital exclusion etc.). 3. Instead of trying to capture numerical differences in an area of social inequality, try thinking about the actual experiences that may be associated with it, specifically concentrating on the impact of COVID-19. What might it be like to become unemployed? How might being disadvantaged affect your ability to manage societal changes caused by COVID-19? 4. Use the concept of intersectionality to make a list of the range of vulnerabilities that place some groups more at risk than others and then consider how these would shape their experiences. ## The Global Context of Inequality Despite measurement issues and ongoing debates within the literature, there is a general agreement that global inequality exists, and that there are groups across the world who hold more wealth than others, and groups who live in poverty. There are numerous statistics that demonstrate vast income inequalities across the world (World Bank 2020a): - The impacts of COVID-19 are expected to halt progress toward ending extreme poverty by at least three years and have pushed more than an estimated 88 million people worldwide into poverty. - South Asia is expected to be the region affected the most, with conservative estimates suggesting that 49 million additional people will be pushed into extreme poverty. - People who are already poor and vulnerable are experiencing the worst impact of the COVID-19 crisis. In addition, the impact of conflicts and climate change will affect the poorest to the greatest extent. The global poor are young, uneducated and live in rural areas. - The impoverishing impacts of COVID-19, conflict and climate change are likely to most detrimentally affect Sub-Saharan Africa, where 26 to 40 million more people will fall into extreme poverty. ## Patterns of Contemporary Inequality Inequality has of course always existed historically. For example, empire building in Roman times used slaves and feudal systems of land ownership existed with serfs working the land while kings owned it and ruled the kingdoms. Historically, then, inequality was related to land ownership, but the Industrial Revolution changed the structure of society and the basis on which wealth was created, as documented by Marx (1906 [1867]). Financial markets, the financial sector and a focus upon continuous economic growth have dominated the contemporary economy, and whilst there have been some changes in poverty levels, and the use of poverty reduction policies, since the 1980s and in particular following the financial crisis of 2007 and 2008, wealth inequality has continued to rise (Yates 2016). The World Bank (2020b:1) has highlighted that the COVID-19 pandemic-related job losses and associated deprivation across the globe are now hitting already-poor and vulnerable people harder. This analysis suggests that the profile of global poverty is being changed via the creation of millions of 'new poor.' ## Learning Task 1.3: Understanding In-work Poverty The idea of cultures of worklessness appeals to policy makers as an explanation for why some groups of people are poor; however, many families who do not have work are committed to the value of it, preferring work rather than welfare (Shildrick et al. 2012). Furthermore, repeated engagement in jobs does not for many provide a route out of poverty (Shildrick et al. 2010). Using the internet, access the Joseph Rowntree Foundation website (https://www.jrf.org.uk/) and search for discussions about in-work poverty. Read at least one of these and make some notes. How does in-work poverty affect children (associated child poverty)? What solutions are suggested? Given that politicians and the media frequently suggest that work is the solution to poverty, do you still agree with these statements? ## Subjective Inequality The experience of inequality is subjective and relational because it involves comparisons with others (relative poverty as a measure accounting for this). For example, we can compare incomes, education levels, health outcomes, political participation and consumption patterns, to name just a few criteria. It can be assumed that individuals compare themselves to their reference group and that this determines, in part, their wellbeing; therefore the same holds true for perceptions of inequality. For people to establish their own social position, they do compare themselves to others, such as those who live close by geographically like neighbours and friends (Runciman 1966). People also compare themselves to earlier generations, such as parents and grandparents. However, there is very little research about how people subjectively perceive and understand social trajectories (Kelley and Kelley 2009). It has been suggested that social change in affluent societies masks relative inequality because temporal comparisons lead to people feeling that the present is an improvement on the past (Bottero 2011). Morgan (2019) points out how these comparisons have led to snobberies of position and of possession which create social boundaries and ideas about groups of 'them' and 'us'. There are many theories and explanations for inequality and it is to these that the chapter now turns. ## Theoretical Debates About Inequality Clearly you will have realised that inequality as a subject has received much attention, measurement and debate as you have read through this chapter. Unsurprisingly then, inequality has also been explained using a range of theoretical perspectives. ## Table 1.3: Explaining Inequality | Theoretical position | Key theorist/s | Theory of health inequality | | ----------------------- | --------------- | --------------------------- | | Marxism | Karl Marx | Highlights materialist and capitalist causes of inequalities. The class system (or social hierarchy/structure) keeps divisive power structures in place which in turn perpetuate poverty and disadvantage, especially among those in the lower social classes. | | Weberian | Max Weber | Structural inequalities are intrinsic to modern societies resulting from economic inequalities. | | Structural functionalism | É mile Durkheim | This approach emphasises the importance of social structures which serve to create and maintain a society that works in a stable manner. Society functions when everyone has a specific 'designated' place within its social structures. Therefore, some people will always be poorer or 'worse off'. | | Feminism | Ann Oakley | Inequalities exist and persist due to the dominance of men and patriarchy. Men are privileged over women both socially and materially. | | Poststructuralism | Michel Foucault | Power operates through constructs which serve to both create and maintain inequalities. Institutions have power and through this they dominate and control through processes such as discipline and surveillance. | | Relative deprivation | | People assess and measure their lives and circumstances based on who they are comparing themselves to. Subjectively many of us may feel disadvantaged irrespective of our societal position. | | Intersectionality | Kimberle Crenshaw | Life is intricately socially connected, therefore all social factors and characteristics that we have influence our identities and life experiences. | *Ideas adapted by the authors from Giddens (2009) and Doidge and Saini (2020) ## Learning Task 1.4: Boundaries Between Us 1. Using the internet explore media reports about poverty in the UK. Look for discussions about individuals and groups of people who need support through welfare provision. Are these people discussed in a positive way by politicians and reporters? 2. Think about the ways in which these reports are constructed - do they victim-blame? Do they support the idea of there being no alternative because some people simply cannot be helped? Are there any discussions of structural factors as an influence on poverty? 3. Think about your own perspective. Do you need to revisit your own attitudes in relation to snobbery and your own moral worth? To what extent are possessions and status present in your own life? How do you construct boundaries between yourself and others? ## Summary of Key Points - Defining and measuring social inequality is complex. Social inequality can be described and measured in a variety of ways but, despite debates about the approach used, there is a large evidence base demonstrating the existence of social inequality. - Patterns of global social inequality are changing but the picture is complex, and there are many concerns about the impact of COVID-19 worsening inequalities, especially for those who are the most vulnerable. - Social inequality results in many negative outcomes, not only at the level of the individuals experiencing the inequality but also at the level of society. Therefore, inequality is bad per se for countries. ## Further Reading - Dorling, D. (2018) Peak Inequality: Britain's Ticking Time Bomb. Bristol: Policy Press. - The Atlas of Inequality, https://inequality.media.mit.edu/ - Wilkinson, R. and Pickett, K. (2019) The Inner Level: How More Equal Societies Reduce Stress, Restore Sanity and Improve Everyone's Well-being. London: Penguin. ## List of Questions to Stimulate Debate and Reflection 1. Think about the approaches to the measurement of social inequality discussed within this chapter. Do we need to focus more on wealthier groups and political power to gain a deeper understanding of how inequalities are perpetuated? 2. Think about your own subjective view of inequality. Who do you compare yourself to and how does this inform your thinking about your societal position? Given that most people in the UK consider themselves to be in the middle (BSA 2019), yet there is evidence of widespread inequality, how accurate do you think your own views are? 3. Given that inequalities continue to persist, and may be worsening because of the COVID-19 pandemic, do we need to revisit the way in which capitalism operates as an economic model? Can capitalist societies share their wealth more equitably?