Definition: Social Inequalities i.e. A Socio-Economic Phenomenon

For there to be inequality, there must be more than a difference in group membership or position. Social inequality is about a wider range of differences.

✕

Definition

Social inequalities - a socio-economic phenomenon, referring to the existing discrepancies in resources, power, income in given social groups. This phenomenon contrasts with a sense of justice. Social inequality consists in occupying a certain place in the social hierarchy, which is not legitimate. There are legitimized division systems in the community. One of them is the natural mechanism, which, as the basic one, constitutes the original position, which will be further directed at further stages by a given individual. Another important mechanism is the economic mechanism. It is based on market mechanisms that determine different levels of income achieved by entities. Thanks to this, it is possible to distinguish such mechanisms as:

• political – public authority influences society with a number of tools,
• social - based on general norms, goals and interests,
• axiological – a generally accepted system of values.

Breakdown of social inequalities

• formal inequality supported by law
• real inequality resulting from the lack of political, cultural and economic motivators

The scope of social inequalities

Social inequalities concern: income, consumption level, gaining authority in society, opportunities to use personal skills.

Scale of social inequalities

Social inequalities against the background of:

• discrepancies in the level of quality of life between the richest and the poorest,
• hostility, addiction, contradictions between groups,
• differences relating to the start of life,
• differences in obtaining promotions, both professional and social,
• the scope of social isolation of talents.

Read next: Difficult Decision Ahead Of The RBA, The Market Expects A 25bp Rate Hike| FXMAG.COM

Causes of social inequalities

• unequal distribution of wealth
• differences in the perception of goods
• lack of susceptibility to developing some goods, e.g. knowledge
• ignorance, poverty

Effects of social inequalities

• increasing importance of social care for single mothers and the unemployed
• establishment of the Caritas Foundation
• attacks
• labor revolts.

Measures of social inequality and their implementation

In order to illustrate social inequalities, the following are used:

• The Gini coefficient shows the decentralization of goods and their location. It is one of the most commonly used indicators, as it strongly influences the allocation of income. It can take values from 0 to 1. An indicator of 0 indicates no inequality, while an indicator of 1 means complete inequality.
• S. Kuznets' method social inequalities regarding earnings change as the level of economy increases. Kuznets made his conclusions based on the workforce employed in the agricultural sector.
• The lorenz curve relates the amount of income to the number of households. This measure focuses on income inequality. (degree of concentration)
• the poverty rate (POV) refers to countries where disposable income is less than 60% of the national median disposable income.
• HDI index – shows the difference between the richest and the poorest countries
• explanatory variables, e.g. Purchasing power GDP, trade union influence, cash pensions in GDP - expressed as a percentage, other transfers - such as family allowances, etc.

Origin of social inequalities

K. Davis and W. Moore are American scientists who were the first to include the issue of social inequality in their theory, where they showed the concept of a society consisting of layers and the essence of the need for stratification of all social systems. Stratification should be interpreted as a discrepancy in the possession of material benefits and authority in society. On the other hand, treating a community as a social system is aimed at assigning individuals a social position that fulfills specific functions. To achieve this, a motivational system is created that evokes the desire to achieve given goals, which is possible with the right predispositions. This theory emphasizes the inheritance of certain abilities.

V. Paveto and G. Mosca, in their concept, emphasize the existence of power elites, regardless of the type of structure and organization of the community. In addition, inherited power skills refer to one of the higher social strata - the aristocracy.

Source: Pliszka T. NierównoÅ›ci spoÅ‚eczne a zagrożenia z nich wynikajÄ…ce Zeszyt 6/37 Katedra Teorii Ekonomii Uniwersytetu Rzeszowskiego