Glossary

In collaboration with COES - Centro de Estudios de Conflicto y Cohesión Social

 
Lost in terminologies?
The Wealth Inequality Initiative Glossary aims to demystify terms linked to the global challenge of wealth inequality. Understanding these terms is the basis for understanding the issue itself and why it matters to all.
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Quintile

Refers to any of five equal groups into which a population can be divided according to the distribution of values of a particular variable (e.g., income, wealth, social mobility). Quintiles are widely used in statistics and studies of inequality. For example, one of the most common ways to measure income inequality is to rank all households by income, from lowest to highest, and then to divide all households into five groups with equal numbers of people (or quintiles). Importantly, this calculation allows for measuring the distribution of income among the five groups compared to the total.

Racialisation

Is the process by which a social group is labelled and differentiated based on social-cultural factors. It is not inherent or biologically determined but rather a social construction that assigns meaning and significance to physical traits such as skin colour and facial features, as well as cultural practices and ancestry. Racialisation is evident in how a particular racial group is unfairly associated with negative traits and experiences, leading to discriminatory practices by institutions and individuals. For instance, ethnic minorities and indigenous communities in different contexts have been subjected to racialisation, which has resulted in various forms of discrimination against these groups.

Recognition

Refers to the action of acknowledging and valuing the person one interacts with as an equal, which entails social relations underpinned by respect and human dignity. Specific social movements and organised minorities, such as the LGBTIQ+ movement, have raised demands for recognition to make their culture and identities acknowledged, valued and respected in a context in which they have been continually excluded and marginalised.

Relative mobility

Refers to the chances of people from certain class positions of attaining a particular income or occupational position relative to those from other class positions. For example, what are the chances of a working-class youngster ending up in an upper-middle-class position compared to a child brought up in an upper-middle-class position. If absolute mobility generally indicates that more people have moved out from the working-class than before, relative mobility indicates that the chances of people from working-class origins moving into professional occupations, compared with those from other positions in the class structure, are not much better than before. Thus, relative mobility, not absolute mobility, is the key indicator of equality of opportunity.

Residential segregation

Refers to the geographical distribution of social groups, particularly in relation to the zones, areas, and neighbourhoods where those groups reside. In areas where this distribution does not lead to diverse settlements, we speak of segregation. Thus, residential segregation denotes distance and separation between groups with distinct social characteristics such as class, race, or ethnicity, among others. Inhabitants of residentially segregated zones, areas or neighbourhoods may confront unequal educational opportunities, which helps to reproduce privilege and social exclusion in society. While residential segregation was mainly caused by government policies and actions in the past, today, it is more often the result of structural inequalities and lack of regulation.

School segregation

Is the condition in which pupils are unequally represented in schools according to their social and identity characteristics, and results in the separation of one social group from another. School segregation can be between schools or within one institution, and it may entail stigmatisation against minority groups. While school segregation was mainly caused by government policies and actions in the past, today it is more often the result of structural inequalities and lack of regulation. Social movements and diverse social actors have shed light on this problem, and some governments have put into action desegregation policies and initiatives to address the school segregation issue. 

Social capital

Refers to the friendships, acquaintances, or other social ties, used as resources by individuals, families, or groups to improve their social position in society. Social capital can serve both to reproduce class inequality and favour the process of upward mobility. Due to their greater size, status or scope of their social ties, well-connected upper-middle-class parents, compared to their working-class counterparts, can typically provide major opportunities, information, and other resources to succeed in life to their children. On the other hand, the social support provided by universities to low-income students (e.g., mentorship) can be a vital resource for their successful social adjustment to higher education and to improve their chances of upward mobility. 

Social class

Refers to individuals, families, or groups who share the same living conditions and socioeconomic status in a given society. Traditionally, societies include big class-based hierarchical groupings, such as the working class, the middle class, and the upper class. Nevertheless, societies can also include smaller or more specific groupings, such as the lower-middle class or upper-middle class. The concept of social class is widely used in censuses and in studies of social mobility.

Social cohesion

Refers to the extent of connectedness and solidarity among individuals, families and groups in society. It stems from the goal to promote economic prosperity and the plurality of citizenship without undermining people’s social ties and sense of unity. It reflects people’s needs for both personal development and a sense of belonging to a community by linking together individual freedom and social justice, economic efficiency and the fair sharing of resources, pluralism and common rules for resolving conflicts. To a large extent, social cohesion is dependent on reducing inequality and existing fractures in society.

Social mobility

Refers to the movement of individuals, families, or groups throughout societies. It includes the possibility of moving up or down, not only in income distribution, but also in class position in society. An industrial worker who becomes a wealthy businessperson experiences upward mobility (also known as upwardly mobile people); an entrepreneur who loses everything in a sudden economic crisis experiences downward mobility (also known as downwardly mobile people). Factors such as educational background, occupational status, income and wealth are closely tied with social mobility.

Social reproduction

Refers to the various ways in which the existing social order is reproduced, renewed, and made durable. From a social mobility perspective, social reproduction refers to a situation where the possibilities of moving up are being limited. This condition is rooted in structural inequalities, which involve, among other factors, the unequal distribution of educational opportunities and the unequal allocation of wealth and economic resources. Those who are in dominant positions will try to maintain their privilege. For instance, schools and universities, by means of the transmission of particular cultural values, may help to maintain the privileged position of those in the upper class.

Social Stratification

Refers to a phenomenon in which individuals and groups are hierarchically ordered into strata according to the resources and attributes they possess. These resources or qualities may be associated with education, occupation, gender or ethnicity, among other social dimensions. In this scheme, the transition from one stratum to another is the effect of the loss or gain of socially valued properties, which implies downward and upward social mobility, respectively.

Status

Refers to a socially defined position that an individual holds within a social system. Some statuses carry more social prestige, power, and privileges than others. Societies typically have a status hierarchy that places individuals and groups in positions of higher or lower social standing. For example, in many societies, doctors and lawyers are accorded higher social status than blue-collar workers. Status is often intertwined with power and prestige. Individuals with higher status often have more influence, authority, and access to resources in society.

Stigmatisation

Is the process by which an individual or group, immersed in a specific social context, is devalued, discredited and labelled in terms of their differences and identity. Persons or groups in positions of power are often the ones who stigmatise disadvantaged people or groups. In the context of educational institutions, different minority groups, such as Latinxs (people of Latin American descent) in the United States, can suffer stigmatisation, which is at the base of significant social inequalities.

Student loans

Are defined as an economic support scheme provided to students to pay for their education. Loan schemes may be particularly relevant in contexts in which education is not free or high tuition fees are charged. Loans are typically offered by governments, banks, or other financial organisations, and are designed to support students to cover the costs of tuition fees and living expenses while they are attending an educational institution. Once students finish their educational level or degree, they must return the money over a period of time and under particular interest rate conditions. High interest student loans can limit social mobility and change in wealth inequality by being a long-term drain on former students, especially those from precarious financial backgrounds.

Sustainable development

Refers to a development model that orients its actions to protect the natural environment while still creating wealth and promoting economic and social benefits. It involves applying different social and economic measures that seek to deal with problems related to global inequalities and the current environmental crisis. With these aims in mind, not only environmental and economic indicators should be monitored, but also those related to social conditions of life such as education, health, work or participation.

Territorial inequality

Is a concept that refers to unequal distribution of resources and opportunities between different regions within a country or across countries, leading to differences in outcomes for people living in those regions. For instance, in a country with significant regional economic inequalities, the more developed and urbanised areas may have access to better job opportunities, social mobility, higher incomes, and better infrastructure than the rural and remote regions.

Transitions

In the context of education, transition consists in passing through key thresholds within the educational system. The entry to preschool, the transition from primary to secondary school, and from secondary to higher education, are examples of these transition points, which become milestones within the individual’s educational trajectory and life course. Phenomena such as school and higher education dropout, educational choices and aspirations are fundamental aspects that link educational transitions with social inequality.

Transnational mobility

Refers to the cross-border movement of individuals, families and groups. For instance, when individuals move from one country to another. Transnational mobility can affect social mobility trajectories. Examples include upper-middle-class individuals who need to move to other countries due to social crises. In case they cannot find comparable employment in the destination country, their income and wealth could decrease, and they might join the lower-middle class or the working class.

Universal access to education

Refers to the situation where all individuals are able to enter and participate in the education system, having equal opportunities, regardless of their gender, race, sexuality, class, disabilities, geographical location, family income or school facilities. Education is considered a fundamental human right, yet currently, not everyone has the same opportunities to access quality education. Deprived people face different obstacles during their educational trajectories, which decrease their future employability and income and thus opportunities to build wealth.

Upwardly mobile people

Refers to individuals, families or groups who move upward in a given society. This upward movement in society can be expressed in terms of income distribution but also in class position. A typical example of upwardly mobile people is represented by the daughter of a secretary who becomes a lawyer working in a top legal firm. This upward trajectory is normally associated with a rise in earnings, but also the possibility of joining the upper-middle class or upper class.

Vulnerability

A condition in which individuals or groups are exposed to increased risks due to social factors such as economic inequalities, discrimination, mental health issues, social exclusion, or lack of resources and support. It highlights how unequal distribution of wealth and income can create and perpetuate social disadvantages, leaving certain individuals more susceptible to various forms of distress and limited life chances.

Wealth

Refers to the amount of resources (e.g., housing, financial, business, properties) individuals, families, and societies own. Wealth is one of the key indicators of a societies’ overall level of prosperity and wellbeing. Wealth is typically accumulated over the years, sometimes including multiple generations, mainly in families and households. This is why, to a large extent, wealth is inherited.

Wealth inequality

Refers to how unevenly wealth, the amount of resources (e.g., physical, private pension, property and financial) people own, is distributed throughout individuals, families, and societies. While income is earned by individuals on a monthly or annual basis, wealth is amassed over the years primarily in families and households. Therefore, changes in wealth inequality tend to take longer to manifest than those in income inequality. Issues around gender and race inequalities become invariably linked to wealth inequality and its transmission over generations. High wealth inequality can be a severe threat to economic growth, social and political stability.

Wealth tax

Refers to a mandatory/compulsory contribution often imposed by governments on assets (e.g., housing, financial, business) owned by an individual, family or a company. As with other types of taxes (e.g., income tax), a wealth tax can serve to raise revenue for governments and it can be used to tackle wealth inequality.

 

Widening participation

Refers to the process by which underrepresented groups in sectors like education (e.g., women, working-class or ethnic minorities) are addressed with the aim of promoting and increasing their participation in the sector. Different countries have implemented specific agendas, policies, and initiatives to address participation issues and bring more opportunities for access to excluded groups. Yet, widening participation should not only involve issues of access but also of retention (keeping underrepresented groups in the sector), which may entail emotional, material, and economic support. 

Xenophobia

refers to rejection, hostility and sometimes fear from individuals, families and groups towards people from other nations, cultures and ethnicities. Groups that have xenophobic attitudes are often associated with lack of knowledge of different cultures, behaviours and features. Most societies are multicultural and plural with a diversity of races, religions and ethnicities. Typically, xenophobia is aggravated when individuals, groups and societies experience insecurity, lack of economic growth, and lack of social and political stability. Individuals who are victims of xenophobia have more difficulties (e.g., restriction to apply to certain jobs) to increase their income, to accumulate wealth and to find better occupations, which negatively affect their upward mobility.

Youth unemployment

Refers to the proportion of young people (15-24 years old) who do not have a job at the present time but are actively looking for one. High youth unemployment occurs when there is a mismatch between supply and demand in terms of educational level, when a country´s economy cannot provide enough suitable jobs and when there is a lack of public policy that can facilitate employment. According to the Organisation for Economic Co-operation and Development (OECD) Greece, Costa Rica, Spain, and Italy are the OECD member countries with the highest level of youth unemployment by 2022. Youth in these countries have a higher chance of experiencing downward social mobility due to the scarcity of job opportunities for young people.