PSY100Y5 Study Guide - Final Guide: Social Stratification, Human Capital, Chronic Poverty
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Social stratification- The way society is organized in layers or strata.
• Wealth is what you own (basically all of your assets)
o Assets minus liabilities = wealth
• Wealth can also improve your health
• Net worth= asset minus debt
• The net worth of the richest quintile has increased 64%
• Rich get richer and the poor get poorer
• Income is the amount of money earned in a given period.
• Income gaps have been widening for about three decades now
• If Canadians relied only on the market to distribute income, inequality would be much greater
• Genes play only a minor role in determining income
• Human Capital- is the investment in education and training
o Just as productivity increases by upgrading manufacturing plants and introducing new
o Productivity gains can also result from investment in the skills and abilities of people.
o Human capital interpretation of the link between schooling and incomes
o Almost everyone makes the same human capital investments
• Social Capital- The networks or connections that people possess
o Success is tied to strong bonds of trust, cooperation, mutual respect etc.
• Culture capital- comprises the set of social skills people have
o Their ability to impress others, to use tasteful language and images effectively to
influence and persuade people.
• Connections and culture can help you find a good job
• Homeless people are at the very bottom
• Homelessness is one manifestation of poverty.
• Poverty lacks a agreed on definition
• Absolute poverty- lacks the basic necessities (such as shelter, food, clothing)
• Relative poverty- poor based on the community you live in
o Poor compared to the community standards
• Low income cutoff (according to stats Canada)- the income level at which a family may be in
impoverished circumstances because it has to spend a greater proportion of its income on
necessities than the average family of a similar size
o 10% of the population
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