Bringing the Firms Back in: Stratification, Segmentation, and the Organization of Work

TLDR

This essay examines the shift toward explanations in recent studies of inequality. The study compares structuralist and orthodox theories of organizational stratification and proposes a research agenda focusing on organizational units, sectoral differentiation, and temporal changes in enterprise organization. The authors review the literature, compare theories, outline the agenda, and illustrate the empirical data and hypotheses needed to link segmentation and stratification to organizational studies. The discussion highlights overlapping and divergent perspectives and concludes that firm‑level arrangements are central to positional stratification, making organizational‑level empirical research more informative for debates on the organization of work than structural or occupational‑level studies.

Abstract

This essay examines the shift toward explanations in recent studies of inequality. After reviewing this body of research and some of its shortcomings, we examine its theoretical underpinnings, comparing structuralist perspectives on organization derived from institutional economics and neo-Marxism to more orthodox accounts based on neoclassical and industrialism theories. This discussion suggests areas where the different perspectives overlap and diverge. We conclude that arrangements within the firm and their trend are the focus of most perspectives on positional stratification; thus, empirical studies grounded at the organizational level are more likely to inform current debates about the of work than is the growing body of research about structural effects on individual attainment or covariation among industrial/occupational characteristics. Toward that end, an agenda for future research is outlined, focusing on three aspects of organization: (a) the units which comprise the structure of and the dimensions underlying economic segmentation; (b) the effects of sectoral differentiation on technical and administrative arrangements within firms; and (c) temporal changes in how enterprises organize production. We provide some illustrations of the kinds of empirical data and research hypotheses required to link research on segmentation and stratification more closely to studies of organizations.