The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • David B. Grusky
Reference work entry


The structure of inequality has historically been represented with an income paradigm that treats well-being as adequately indexed by income alone. By contrast, the class-analytic tradition treats inequality as fundamentally multidimensional, with such variables as health, education and social relations all deemed important nonincome constituents of well-being. These variables may assume a class-based form in which social groups within the division of labour define characteristic constellations of scores. The class model is further supported in so far as class membership has true causal effects on behaviours that are not reducible to the effects of income or other correlates of class.


Class Compensating differentials Human development index Identity Inequality, multidimensional Labour markets Marx, K. Redistribution of income and wealth Sen, A. Socio-economic index Underclass 

JEL Classifications

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • David B. Grusky
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