Class Structure and Economic Inequality
Levy Economics Institute Working Paper No. 487
42 Pages Posted: 11 Jan 2007
Date Written: January 2007
Existing empirical schemas of class structure do not specify the capitalist class in an adequate manner. We propose a schema in which the specification of capitalist households is based on wealth thresholds. Individuals in noncapitalist households are assigned class locations based on their position in the labor process. The schema is designed to address the question of the relationship between class structure and overall economic inequality. Our analysis of the U.S. data shows that class divisions among households, especially the large gaps between capitalist households and everyone else, contribute substantially to overall inequality.
Keywords: Class Analysis, Living Standards, Inequality
JEL Classification: B51, D31, P16, Y80
Suggested Citation: Suggested Citation