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Nelson locates the source of inequality and polarization within American society in the transformation of American business, describing the shifts in corporate resources and their use by the corporate sector, and the implications for inequality across the institutional spectrum.

The hypothesis that private firms deliver quality social services at lower cost than public firms is challenged, arguing that in the case of complex & uncertain tasks, eg, welfare delivery, there is difficulty in simultaneously ensuring equal access to services, sustaining quality, & reducing cost. Drawing on contingency theory & relevant research from the literature on formal organizations, three aspects of the privatization argument are examined: competitive markets, rationality, & cost reduction. A central claim of economic theory -- free markets & private firms are the most effective mechanisms for producing & distributing goods & services -- is challenged, & constraints to applying market norms to social welfare are discussed. 60 References.

The course and development of capitalism is a central issue in socio‐logical analysis (Marx, 1936; Harrington, 1976; Bernstein, 1985; Badham, 1984; Baran and Sweezy, 1977; Dahrendorf, 1959; Mandel, 1976). Though there is little agreement on the destiny of capitalism, there is general recognition that capitalism has been altered by recent social change. These changes have been widely discussed around ideas pertaining to the regulation of economic actors, legal constraints on wages and the general increase of welfare programmes. Of these developments, welfare and social services have been the most carefully monitored in the sociological literature. Since welfare programmes provide goods and services without regard to social and economic status, welfare has been correctly interpreted as a significant modification of capitalism.

Numerous studies have reported strong linear associations between income & inequality at the state level. A state-level analysis based on data from the 1970 census reveals a curvilinear relationship between the two: inequality declines as income rises, but beyond a certain point inequality stabilizes & then increases slightly. The turning point in inequality in the most affluent states is traced to the opportunities afforded to high-income workers, a stratum virtually ignored in previous studies. 1 Table, 2 Figures, 24 References. Modified HA.

This article explores the influence of various service industries on male earnings inequality within the 125 largest metropolitan areas in the United States. The data indicate that service sector employment increases inequality. Contrary to past literature suggesting that service growth proliferates low-paying occupational positions that increase inequality, however, multiple regression analyses demonstrate that increasing inequality is more a function of high-paying jobs in "producer services"—the service sector providing financial resources as well as technical and legal expertise to the business community. Greater concentrations of producer services in metropolitan areas increase the proportion of workers with exceedingly high incomes without affecting median incomes. Consequently, when producer services are extensive in an area, earnings distributions are more skewed and unequal.

Educated elites are making their mark on the stratification structure of the metropolitan US. Educated elites are proportionally greater whenever the economy is service dominated, and furthermore, these elites are the key factor in explaining why disparities resulting from high earners are present in service dominated areas. The resulting inequality in earnings is one of the unanticipated consequences of the growth of an educated elite, at least among males. It remains to be seen whether female elites will resemble males in their influence on inequality if sex differences in earnings disappear. The elite is a professional cadre rather than an aristocracy based solely on inherited wealth, placed just beyond an upper middle class. Given their background, education, affluence and numbers, the choices this elite makes on issues will influence the course of society.