Chapter Overview

1. What is the theory of cumulative disadvantage and how does it explain gender, racial, and ethnic differences in material well-being among the aged?
The basic sociological approach to stratification views inequality as a product of social processes, not innate differences between individuals. The central question in the study of stratification is how social inequality is produced, maintained, and transmitted from one generation to another. According to the theory of cumulative disadvantage, inequality is not a static outcome but rather is a cumulative process that unfolds over the life course. Women and members of racial and ethnic minorities have lower incomes and higher rates of poverty in old age than white males because of earlier experiences and opportunities.

2. How do gender and marital status affect a person's eligibility for Social Security benefits?
Social Security is an important source of income for nearly all older people, but those at the lower end of the income distribution-women and minorities-depend most on this program. Yet their average benefits are lower than those of white men. Women and minorities receive lower Social Security benefits than white males, because the eligibility rules reward workers who have had continuous work histories and high-paying jobs. Women and minorities have more sporadic records of labor force participation and lower wages than white men. As a result, their benefits tend to be lower. The gender disparity in Social Security benefits may diminish in the future. One reason is that women are working more steadily than in the past. When they reach retirement age, they will have had more continuous work histories. Another reason is that the job stability of white males has declined. Finally, the pay gap between younger men and women has declined.

3. How does the Social Security benefit for spouses operate?
The spouse benefit supplements the retirement income of a married couple by providing one-half of the retired worker's benefit. When the worker dies, the widow or widower loses the spouse benefit but retains a survivor's benefit equal to 100 percent of the worker' benefit. A former spouse is eligible for one-half of the worker' benefit but not until she or he reaches age 60.

4. How do gender and marital status affect a person's eligibility for employer pensions?
The same factors that reduce Social Security benefits for women and minorities also affect their access to employer pensions. Low wages and discontinuous work histories make many people ineligible for these pensions. The advantage of Social Security, however, is that nearly 99 percent of older people (as mentioned in Chapter 4) receive some income from it. By contrast, less than half of retirees receive income from employer pensions.

5. How do racial and ethnic groups vary in terms of their economic security in old age?
Compared to whites, African Americans have had higher rates of unemployment, more sporadic employment, and lower wages. Lower earnings during their working years mean lower Social Security benefits in retirement. Sporadic employment also means less opportunity to become vested in private pension systems and less opportunity to accumulate pension savings. Because of past and continuing discrimination in the sale of housing, older blacks and Hispanics are less likely than whites to own a home. Further, because of segregated housing patterns, the homes owned by blacks are less valuable than those of whites.