Social Class and Income Inequality in the United States: Ownership, Authority, and Personal Income Distribution from 1980 to 2010.

Abstract

This study outlines a theory of social class based on workplace ownership and authority relations, and it investigates the link between social class and growth in personal income inequality since the 1980s. Inequality trends are governed by changes in between-class income differences, changes in the relative size of different classes, and changes in within-class income dispersion. Data from the General Social Survey are used to investigate each of these changes in turn and to evaluate their impact on growth in inequality at the population level. Results indicate that between-class income differences grew by about 60% since the 1980s and that the relative size of different classes remained fairly stable. A formal decomposition analysis indicates that changes in the relative size of different social classes had a small dampening effect and that growth in between-class income differences had a large inflationary effect on trends in personal income inequality.