Economics and social stratification: classical-neoclassical economists’ thought on class structure and related phenomena

Abstract

The paper re-examines the approach of conventional economics to social stratification, in particular class structure and distribution of wealth. It argues that conventional economics generally tends to assume an ambivalent, dualistic position on social stratification, especially class structure and distribution, expressed in a dual approach to the matter. The first approach consists in neglecting or downplaying stratification, plus treating it as transient and benign, and explaining and rationalising it by “natural” and/or transcendental causes. The second approach involves recognising and stressing the existence and relevance of class and generally social stratification, particularly the arbitrary institutional nature and adverse effects of the unequal distribution of wealth and income. The paper intends to make two contributions to the history of economic thought. They are, first, disclosing an implicit, rudimentary and partly overlooked debate on social stratification in the history of economic thought, and second, helping develop a more complete, explicit and systematic historical account of the subject. These goals and contributions can be of high relevance for the history of economic thought for at least two reasons. These are that, first, many economists seem unaware of some debates on social stratification within the latter, and second, a fuller historical account of the subject is necessary or desirable in view of its relative importance historically contemplated. These goals are consistent with the rebirth and growing pertinence of stratification economics. The paper can hence potentially be of interest and relevance to economists working on re-emerging stratification economics as well as to sociologists.