Occupational Inequality - Theories

Theories

Occupational inequality has historically always been a problem, but could diminish over time, according to Richard A. Miech, who attributes this potential change to economic theory. He determines that race and sex discrimination is inefficient in a competitive world because it calls for only white men to be employed. White men, however, will demand a higher salary than women or people of other races who have the same education and abilities, thus discriminating employers lose more money. Non-discriminating employers can gain an edge in the competitive market by hiring women and minorities, thereby reducing occupational inequality. This plan, if taken on by employers, could perpetuate over time to other employers in which occupational inequality could decrease nationally. Other theories and research suggests occupational inequality is increasing and will continue to do so.

According to the process of “aging effects”, occupational inequality will continue with advancing age. According to this theory, the labor market consists of two sectors of jobs; one is the “primary” core of good jobs with good working conditions, advancement opportunities and job safety. The other is the “peripheral” sector of bad jobs with bad working conditions, low advancement opportunities and little job safety. Mobility between these two groups is very difficult. Women and minorities are disproportionately placed into the peripheral sector early on in their careers with little chance of moving into the primary group to achieve equal occupational status.

The theory of “homosocial reproduction” points to a trend where those in high position tend to pick the employees who have similar social backgrounds as their own for advancement. Since the majority of managers are men, women are less chosen for career advancement and thus occupational inequality increases.