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Reasons why income and wealth inequality existsSociological theories about inequality

Income and wealth inequality can be caused by differences in the growth of income of different social groups. Changes in employment and taxation and government policy can also affect levels of inequality.

Part of Modern StudiesInequality

Sociological theories about inequality

Functionalism and conflict theories

There are two main approaches to sociological theory which attempt to explain income and wealth inequalities:

  1. Functionalism: Theorists on the right of politics (functionalists) may explain inequality as part of the 'natural order' as society is hierarchical. People with skills, talents and abilities are better rewarded than those without. (Individualist)
  2. Conflict Theory: People on the left of politics (conflict theorists) may argue that inequality is a consequence of those at the top of society dictating the economic and social system to maintain their privileged position. It is society as a collective that causes inequality. (Collectivist)

There are a great many other complex sociological theories which aim to explain social inequalities. No one theory is accepted by all sociologists as correct.

Individualist and collectivist views of inequality

There are two main ideological views on the best way to deal with income and wealth inequalities across society.

  1. One is that individuals should take primary responsibility. This means people should aim to make their own provision wherever possible in terms of housing, healthcare, education and retirement. Individualists argue the government does not have the resources to provide for all groups and that extended state support encourages dependency.
  2. The other view is for increased state support in the provision of welfare. Collectivists believe too many people lack the means or ability to provide for their welfare and so state provision is the fairest and most effective way of meeting need and creating a better society.
The fundamental differences between an individualist and collectivist

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