The Class Pay Gap in Higher Professional and Managerial Occupations

First Published June 23, 2016 Research Article

Authors

a
 
Swarthmore College and London School of Economics
by this author
, b
 
London School of Economics
by this author
First Published Online: June 23, 2016

This article demonstrates how class origin shapes earnings in higher professional and managerial employment. Taking advantage of newly released data in Britain’s Labour Force Survey, we examine the relative openness of different high-status occupations and the earnings of the upwardly mobile within them. In terms of access, we find a distinction between traditional professions, such as law, medicine, and finance, which are dominated by the children of higher managers and professionals, and more technical occupations, such as engineering and IT, that recruit more widely. Moreover, even when people who are from working-class backgrounds are successful in entering high-status occupations, they earn 17 percent less, on average, than individuals from privileged backgrounds. This class-origin pay gap translates to up to £7,350 ($11,000) lower annual earnings. This difference is partly explained by the upwardly mobile being employed in smaller firms and working outside London, but it remains substantial even net of a variety of important predictors of earnings. These findings underline the value of investigating differences in mobility rates between individual occupations as well as illustrating how, beyond entry, the mobile population often faces an earnings “class ceiling” within high-status occupations.

Abramson, Corey M. 2015. The End Game: How Inequality Shapes Our Final Years. Cambridge, MA: Harvard University Press.
Google Scholar | Crossref
Ashley, Louse, Duberly, Jo, Sommerlad, Hilary, Scholarios, Dora. 2015. “Non-educational Barriers to the Elite Professions Evaluation.” London, UK: Social Mobility and Child Poverty Commission (https://www.gov.uk/government/publications/non-educational-barriers-to-the-elite-professions-evaluation).
Google Scholar
Atkinson, Will . 2010. Class, Individualization and Late Modernity: In Search of the Reflexive Worker. New York: Palgrave.
Google Scholar | Crossref
Babcock, Linda, Laschever, Sara, Gelfand, Michele, Small, Deborah. 2003. “Nice Girls Don’t Ask.” Harvard Business Review 81(10):1416.
Google Scholar | Medline
Bathmaker, Ann-Marie, Ingram, Nicola, Waller, Richard. 2013. “Higher Education, Social Class and the Mobilisation of Capitals: Recognising and Playing the Game.” British Journal of Sociology of Education 34(5-06):72343.
Google Scholar | Crossref
Becker, Gary S. 1962. “Investment in Human Capital: A Theoretical Analysis.” Journal of Political Economy 70(5, Part 2):949.
Google Scholar | Crossref
Bielby, William T. 1981. “Models of Status Attainment.” Research in Social Stratification and Mobility 1:326.
Google Scholar
Blanden, Jo, Goodman, Alissa, Gregg, Paul, Machin, Stephen. 2004. “Changes in Intergenerational Mobility in Britain.” Pp. 12246 in Generational Income Mobility in North America and Europe, edited by Corak, M. Cambridge, UK: Cambridge University Press.
Google Scholar | Crossref
Blanden, Jo, Gregg, Paul, Macmillan, Lindsey. 2007. “Accounting for Intergenerational Income Persistence: Noncognitive Skills, Ability and Education.” The Economic Journal 117(519):C4360.
Google Scholar | Crossref
Blau, Peter M., Duncan, Otis Dudley. 1967. The American Occupational Structure. New York: John Wiley & Sons (http://eric.ed.gov/?id=ED066526).
Google Scholar
Blinder, Alan S. 1973. “Wage Discrimination: Reduced Form and Structural Estimates.” Journal of Human Resources 8(4):43655.
Google Scholar | Crossref
Bourdieu, Pierre . 1984. Distinction. Cambridge, MA: Harvard University Press.
Google Scholar
Bourdieu, Pierre. [1986] 2001. “The Forms of Capital.” Pp. 96111 in The Sociology of Economic Life, edited by Swedberg, R., Granovetter, M. Boulder, CO: Westview.
Google Scholar
Bourdieu, Pierre . 1987. “What Makes a Social Class? On the Theoretical and Practical Existence of Groups.” Berkeley Journal of Sociology 32(January):1–17.
Google Scholar
Brynin, Malcolm, Güveli, Ayse. 2012. “Understanding the Ethnic Pay Gap in Britain.” Work, Employment & Society 26(4):57487.
Google Scholar | SAGE Journals
Bühlmann, Felix . 2010. “Routes into the British Service Class: Feeder Logics According to Gender and Occupational Groups.” Sociology 44(2):195212.
Google Scholar | SAGE Journals
Butler, Tim, Savage, Michael. 1995. Social Change and the Middle Classes. London, UK: Routledge.
Google Scholar
Cohen, Philip N., Huffman, Matt L. 2007. “Working for the Woman? Female Managers and the Gender Wage Gap.” American Sociological Review 72(5):681704.
Google Scholar | SAGE Journals | ISI
Cohen, Philip N., Huffman, Matt L., Knauer, Stephanie. 2009. “Stalled Progress? Gender Segregation and Wage Inequality among Managers, 1980–2000.” Work and Occupations 36(4):31842.
Google Scholar | SAGE Journals
Coleman, James S. 1988. “Social Capital in the Creation of Human Capital.” American Journal of Sociology 94(supplement):S95S120.
Google Scholar | Crossref | ISI
Cook, Andrew C. G., Faulconbridge, James R., Muzio, Daniel. 2012. “London’s Legal Elite: Recruitment through Cultural Capital and the Reproduction of Social Exclusivity in City Professional Service Fields.” Environment and Planning A 44(7):174462.
Google Scholar | SAGE Journals
Crawford, Claire, Vignoles, Anna. 2014. Graduates Who Went to Private Schools Earn More Than Graduates Who Did Not (No. 7421). London: Institute for Fiscal Studies (http://www.ifs.org.uk/publications/7421).
Google Scholar
Cunningham, Niall, Savage, Mike. 2015. “The Secret Garden? Elite Metropolitan Geographies in the Contemporary UK.” Sociological Review 63(2):32148.
Google Scholar | SAGE Journals | ISI
Davies, Lord of Abersoch CBE . 2011. “Women on Boards.” Department for Business, Innovation and Skills (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/31480/11-745-women-on-boards.pdf).
Google Scholar
Dorling, Danny . 2014. Inequality and the 1%. London, UK: Verso Books.
Google Scholar
Erikson, Robert, Goldthorpe, John H. 1992. The Constant Flux: A Study of Class Mobility in Industrial Societies. New York: Oxford University Press.
Google Scholar
Erikson, Robert, Goldthorpe, John H. 2010. “Has Social Mobility in Britain Decreased? Reconciling Divergent Findings on Income and Class Mobility.” British Journal of Sociology 61(2):21130.
Google Scholar | Crossref | Medline
Erikson, Robert, Goldthorpe, John H., Portocarero, Lucienne. 1979. “Intergenerational Class Mobility in Three Western European Societies: England, France and Sweden.” British Journal of Sociology 30(4):41541.
Google Scholar | Crossref
Flemmen, Magne . 2009. “Social Closure of the Economic Upper Class.” Tidsskrift for Samfunnsforskning 50(4):493522.
Google Scholar
Flemmen, Magne . 2012. “The Structure of the Upper Class: A Social Space Approach.” Sociology 46(6):103958.
Google Scholar | SAGE Journals
Friedman, Sam, O’Brien, Dave, Laurison, Daniel. Forthcoming. “ ‘Like Skydiving without a Parachute’: How Class Origin Shapes Occupational Trajectories in British Acting.” Sociology (http://soc.sagepub.com/content/early/2016/02/26/0038038516629917.full.pdf+html).
Google Scholar
Friedman, Sam . 2016. “Habitus Clivé and the Emotional Imprint of Social Mobility.” Sociological Review 64(1):12948.
Google Scholar | SAGE Journals | ISI
Friedman, Sam, Laurison, Daniel, Miles, Andy. 2015. “Breaking the ‘Class’ Ceiling? Upward Mobility into British Elite Occupations.” Sociological Review 63(2):25990.
Google Scholar | SAGE Journals | ISI
Furlong, Andy, Cartmel, Fred. 2005. “Early Labour-Market Experiences of Graduates from Disadvantaged Families.” Joseph Rowntree Foundation. London, UK: Policy Press.
Google Scholar
Gilens, Martin . 2012. Affluence and Influence: Economic Inequality and Political Power in America. Princeton, NJ: Princeton University Press.
Google Scholar | Crossref
Goldthorpe, John H. 2013. “Understanding – and Misunderstanding – Social Mobility in Britain: The Entry of the Economists, the Confusion of Politicians and the Limits of Educational Policy.” Journal of Social Policy 42(3):43150.
Google Scholar | Crossref
Goldthorpe, John H., Llewellyn, Catriona, Payne, Clive. 1980. Social Mobility and Class Structure in Modern Britain. Oxford: Clarendon Press.
Google Scholar
Goldthorpe, John H., Mills, Colin. 2008. “Trends in Intergenerational Class Mobility in Modern Britain: Evidence from National Surveys, 1972–2005.” National Institute Economic Review 205(1):83100.
Google Scholar | SAGE Journals
Gorman, Elizabeth H., Kmec, Julie A. 2009. “Hierarchical Rank and Women’s Organizational Mobility: Glass Ceilings in Corporate Law Firms.” American Journal of Sociology 114(5):142874.
Google Scholar | Crossref | Medline | ISI
Gregg, Paul, Jonsson, Jan O., Macmillan, Lindsey, Mood, Carina. 2013. “Understanding Income Mobility: The Role of Education for Intergenerational Income Persistence in the US, UK and Sweden.” DoQSS Working Paper 13–12. Department of Quantitative Social Science, UCL Institute of Education, University College London.
Google Scholar
Griffiths, Dave, Miles, Andrew, Savage, Mike. 2008. “The End of the English Cultural Elite?” Sociological Review 56(s1):187209.
Google Scholar | SAGE Journals
Groot, Wim, Oosterbeek, Hessel. 1994. “Earnings Effects of Different Components of Schooling; Human Capital versus Screening.” Review of Economics and Statistics 76(2):31721.
Google Scholar | Crossref
Grusky, David B., Sørensen, Jesper B. 1998. “Can Class Analysis Be Salvaged?” American Journal of Sociology 103(5):11871234.
Google Scholar | Crossref | ISI
Hagan, John, Kay, Fiona. 1995. Gender in Practice: A Study of Lawyers’ Lives. Oxford: Oxford University Press.
Google Scholar
Hallsten, Martin . 2013. “The Class-Origin Wage Gap: Heterogeneity in Education and Variations across Market Segments.” British Journal of Sociology 64(4):66290.
Google Scholar | Crossref | Medline
Hansen, Marianne Nordli . 2001a. “Closure in an Open Profession: The Impact of Social Origin on the Educational and Occupational Success of Graduates of Law in Norway.” Work, Employment & Society 15(3):489510.
Google Scholar | SAGE Journals
Hansen, Marianne Nordli . 2001b. “Education and Economic Rewards: Variations by Social-Class Origin and Income Measures.” European Sociological Review 17(3):209231.
Google Scholar | Crossref
Heath, Anthony Francis . 1981. Social Mobility. London, UK: Fontana.
Google Scholar
Hout, Michael . 1984. “Status, Autonomy, and Training in Occupational Mobility.” American Journal of Sociology 89(6):13791409.
Google Scholar | Crossref
Hout, Michael . 2015. “A Summary of What We Know about Social Mobility.” ANNALS of the American Academy of Political and Social Science 657(1):2736.
Google Scholar | SAGE Journals
Jann, Ben . 2008. “The Blinder–Oaxaca Decomposition for Linear Regression Models.” Stata Journal 8(4):45379.
Google Scholar | SAGE Journals
Jann, Ben . 2014. “Plotting Regression Coefficients and Other Estimates.” Stata Journal 14(4):708737.
Google Scholar | SAGE Journals
Jerrim, John . 2012. “The Socio-Economic Gradient in Teenagers’ Reading Skills: How Does England Compare with Other Countries?” Fiscal Studies 33(2):15984.
Google Scholar | Crossref | ISI
Jonsson, Jan O., Grusky, David B., Di Carlo, Matthew, Pollak, Reinhard, Brinton, Mary C. 2009. “Microclass Mobility: Social Reproduction in Four Countries.” American Journal of Sociology 114(4):9771036.
Google Scholar | Crossref | Medline
Lareau, Annette . 2015. “Cultural Knowledge and Social Inequality.” American Sociological Review 80(1):127.
Google Scholar | SAGE Journals
Li, Yaojun, Devine, Fiona. 2011. “Is Social Mobility Really Declining? Intergenerational Class Mobility in Britain in the 1990s and the 2000s.” Sociological Research Online 16(3):4.
Google Scholar | SAGE Journals
Lipset, Seymour Martin, Bendix, Reinhard. 1991. Social Mobility in Industrial Society. New Brunswick, NJ: Transaction Publishers.
Google Scholar
Macmillan, Lindsey . 2009. “Social Mobility and the Professions.” Research in Public Policy 5(Summer):35.
Google Scholar
Macmillan, Lindsey, Tyler, Claire, Vignoles, Anna. 2014. “Who Gets the Top Jobs? The Role of Family Background and Networks in Recent Graduates’ Access to High-Status Professions.” Journal of Social Policy 44(3):129.
Google Scholar
Mastekaasa, Arne . 2011. “Social Origins and Labour Market Success: Stability and Change over Norwegian Birth Cohorts 1950–1969.” European Sociological Review 27(1):115.
Google Scholar | Crossref
McGovern, Patrick, Hill, Stephen, Mills, Colin, White, Michael. 2007. Market, Class, and Employment. Oxford: Oxford University Press.
Google Scholar | Crossref
Milburn, Alan . 2012. “Fair Access to Professional Careers” ( http://hdl.voced.edu.au/10707/326959).
Google Scholar
Miles, Andrew . 1999. Social Mobility in Nineteenth- and Early Twentieth-Century England. Basingstoke, UK: Palgrave Macmillan.
Google Scholar | Crossref
Miles, Andrew, Savage, Mike. 2012. “The Strange Survival Story of the English Gentleman, 1945–2010.” Cultural and Social History 9(4):595612.
Google Scholar | Crossref
Mitnik, Pablo A., Bryant, Victoria, Weber, Michael, Grusky, David B. 2015. “New Estimates of Intergenerational Mobility Using Administrative Data.” Statistics of Income Division working paper, Internal Revenue Service (https://www.irs.gov/pub/irs-soi/15rpintergenmobility.pdf).
Google Scholar
Modood, Tariq, Khattab, Nabil. 2016. “Explaining Ethnic Differences: Can Ethnic Minority Strategies Reduce the Effects of Ethnic Penalties?” Sociology 50(2):23146.
Google Scholar | SAGE Journals | ISI
Office for National Statistics. Social Survey Division, Northern Ireland Statistics and Research Agency. Central Survey Unit . 2014. Quarterly Labour Force Surveys, October–December, 2013 through July–September 2014: Special Licence Access. [data collection]. UK Data Service. SN: 7469, 7502, 7578, 7589.
Google Scholar
Petersen, Trond, Morgan, Laurie A. 1995. “Separate and Unequal: Occupation-Establishment Sex Segregation and the Gender Wage Gap.” American Journal of Sociology 101(2):32965.
Google Scholar | Crossref | ISI
Piketty, Thomas . 2014. Capital in the Twenty-First Century. Cambridge, MA: Harvard University Press.
Google Scholar | Crossref
Pollard, E., Pearson, R., Wilson, R. 2004. “Next Choices: Career Choices Beyond University.” Brighton, UK: Institute for Employment Studies (http://www.employment-studies.co.uk/system/files/resources/files/405.pdf).
Google Scholar
Purcell, Kate, Elias, Peter, Wilton, Nick. 2004. “Higher Education, Skills and Employment: Careers and Jobs in the Graduate Labour Market.” Warwick Institute for Employment Research, Research Paper 3 (http://www2.warwick.ac.uk/fac/soc/ier/research/completed/7yrs2/rp3.pdf).
Google Scholar
Rivera, Lauren A. 2012. “Hiring as Cultural Matching: The Case of Elite Professional Service Firms.” American Sociological Review 77(6):9991022.
Google Scholar | SAGE Journals
Rivera, Lauren A. 2015. Pedigree: How Elite Students Get Elite Jobs. Princeton, NJ: Princeton University Press.
Google Scholar | Crossref
Savage, Mike, Barlow, James, Dickens, Peter, Fielding, Tom. 1992. Property, Bureaucracy, and Culture: Middle-Class Formation in Contemporary Britain. New York: Routledge.
Google Scholar
Savage, Mike, Devine, Fiona, Cunningham, Niall, Friedman, Sam, Laurison, Daniel, Miles, Andrew, Snee, Helene, Taylor, Mark. 2014. “On Social Class, Anno 2014.” Sociology 49(6):10111030.
Google Scholar | SAGE Journals
Skeggs, Beverley . 1997. Formations of Class & Gender: Becoming Respectable. London, UK: Sage.
Google Scholar
Stanworth, Philip, Giddens, Anthony. 1974. Elites and Power in British Society. Cambridge: Cambridge University Press Archive.
Google Scholar
Torche, Florencia . 2011. “Is a College Degree Still the Great Equalizer? Intergenerational Mobility across Levels of Schooling in the United States.” American Journal of Sociology 117(3):763807.
Google Scholar | Crossref | ISI
Walker, Ian, Zhu, Yu. 2010. “Differences by Degree: Evidence of the Net Financial Rates of Return to Undergraduate Study for England and Wales.” IZA Discussion Paper 5254. Institute for the Study of Labor (IZA).
Google Scholar
Weeden, Kim A., Grusky, David B. 2005. “The Case for a New Class Map.” American Journal of Sociology 111(1):141212.
Google Scholar | Crossref
Weichselbaumer, Doris, Winter-Ebmer, Rudolf. 2005. “A Meta-Analysis of the International Gender Wage Gap.” Journal of Economic Surveys 19(3):479511.
Google Scholar | Crossref
Wilson, George, Sakura-Lemessy, Ian, West, Jonathan. 1999. “Reaching the Top: Racial Differences in Mobility Paths to Upper-Tier Occupations.” Work and Occupations 26(2):16586.
Google Scholar | SAGE Journals
Wright, Erik Olin, Wright, Eric Lloyd. 1998. Classes, 2nd ed. London, UK: Verso.
Google Scholar

Access content

To read the fulltext, please use one of the options below to sign in or purchase access.
  • Access Options

    My Account

    Welcome
    You do not have access to this content.

    Chinese Institutions / 中国用户

    Click the button below for the full-text content

    请点击以下获取该全文

    Institutional Access

    does not have access to this content.

    Purchase Content

    24 hours online access to download content

    Added to Cart

    Cart is full

    There is currently no price available for this item in your region.

    Research off-campus without worrying about access issues. Find out about Lean Library here


Purchase

ASR-article-ppv for GBP29.00
ASR-article-ppv for $37.50

Cookies Notification

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more.
Top