American versus East Asian norms and labor market institutions affecting socioeconomic inequality

Abstract

We review research on social stratification and labor market institutions with a focus on typical East Asian practices versus common American perspectives about income inequalities. In contrast to American concerns about discrimination, equality of opportunity and individualism, the understanding of inequalities in East Asian societies is more influenced by a Confucian cultural tradition. East Asian norms and labor market institutions play an important role in reducing their level of household income inequality relative to the U.S. where the Gini coefficient has been increasing for decades and shows no signs of decreasing despite declining levels of discrimination.