SOME SOCIAL FACWns

JtFFm-ma .iAGE Itlt'D SM,.ARl' LEVELS

b,.

Suteer it. llpbonsine Billion. o. P.

A Th~.sissn1:mit.ted to the Faculty or t.he Graduate Sehool, itarquett.eUniversity, 1~ Partial'tU!11hlient ot the Re­

.quirement.e: for the Degree of MIl ~er 01 Arts:

mwaukoo, Wisconsin

'.July, 19lt·3

CO~l'$

IntrodUctlon

Chapter I Det1n1M.on or te't;ms­\1~ge. St\lt1:r;f, UOJ1$Y Wage,

~..ge

1-4

R~al 'W$ge5-8

Chaptocr 11 Bria! nav:Lmv of t~$ Economic theories ~nd Fao­t.ors9-11

Ohapter 111- Som:e Social. faaOO1"8 P,fft!<::ttng Wagfl mel sal~1'Y Levels l8-~.:O

Social St.rat.ificattonot Gain-fully' t1:t'lpi oyed 18-23

~ffeet of llobl1it"y ilt h1n Oeuu-p'a1~it)n:11 GrottPs '-3-28

'h-e:.'1ds cf ::;~mt OVtll" \tit,bin Patti-1ly O'e~"1r-a'!;,i.<lrlal n:mtt'p.~ ;2S- 30

Di$t,incti()~1 Bet wuen Ooct;lpatiun and Prot easton 39-35

SO:ci;d Si.gli.i'lc<?>tl~e fl.'! ?restige 35- ,8""

tTarl.a.'lts et Hum.-:m Nat~re 38- 42

Social neri't-A..-ge. 42

'rime and Training Involved in ~!astery 4'Z-46

u."'dqu~ Abillti.~s a nd Attr ae'tin­ness, of 'Postt.J. on ns Romt.1llara:tton Determnnnts 46-50

CON'rENTS

Influe-nee or Prensurc Groups

Geogr-a phi01.J. P:xct.ors

Tr8nsitory Nature ot Institutions p,.nd Social Legislat.ion

Status of Wor~~n G.slnfully Employed

Co1lC~U$'lorl

Bibliography

P.!'l.ge

50-60

61-65

65-67

(>7- 74.

75-80

81-89

PRm'ACE

This the~i$ was lfrlt~n ml,l!er the direction

·or Dr. Paul J. nundie., To him nr 1:l'.titude Me ex­

pres~h:ld tor his suggestions .and, f.U:i.dnnec in the

coepletion or this study. Aolalo:wle4gement. is

altlio made' for tile en(}ot.lr-~gement and i nterel'Jt

ot l!otber MAr:y Samuel, O.P. find th(, other roe ­

hers of our OOmmllntt 1'.

1.

INTRODUCTION

Wages and sal aries ar e- of importance to t hose who engage

in Yfo-rk or make the payment tor services rendered to them. f~o

person has ever understood all the complex social and economic

factors that make ror wage and sal a r y payment. That they a rce ,

of sufficient importance to merit i nvestigation no one will

. deny . The sociological repercussion t.hat flows from a faulty

wage structure reflects itself in poverty, crime ,and social

del~pquencies..

Economists de5ire to find an explanation of economic

happenings in as broad principles as possible for wage and

sal a ry payment . Physi cists, chemist s , mat hematiCians, and

a stronomers conetantly seek for all inclusive generalizations

such as the l aw of gravitation, t he periodic l aw, the l aw or

proportions, the l aw of inertia. Such gener alizations are

valuable, and with their aid much more progress can be I!iade

than without th~JI1. If it were potnd.ble to tormul:Jlt.e similar

l aW8 in the socia l sciencee they would he equally he1pful.

There 1s .Much reason t.o doubt whether such l aws can be for-

mulated, at least with our present knowledge . 'l'he field or

social science is one in which there are Inany variable rorce~

which cannot be measured or scaled. into a t angible to mula.

Hence it is impossihle to dr aw uJ) steadfa·st l aws and sweeping

generali zations.

'!'he history of economic thought contains many theories

attempting to prove that wages and salaries are set b~ definite

l aws. The va rious theories that have been proposed by the

economist manifest the interest shown in attempting to determine

wage and salary levels. Any adequate doctrine tor wages and

sal aries must expl ain the fixing of t hem for all groups, or

it· fails to perf orm the function of a universal theory. The

habits, customs, institutions, and beliefs which make up

present day society are determinants in the economic compen­

sation of people and consequently d.eserve consideration. It

1s important that recognition of social forces as they deter­

mine wage and sa l ary levels be not overlool(ed.

Much has been written on the economic faetors that con­

tribute towards the setting of a wage and salary sea le. The

role of the social factor a s it bears on the question has often

been neglected . Soclal and occupa.tional stratification have

an important part to play in the economic ll£e of peopl e . The

inequalities of native abilities , discriminatory measures, op­

portunity and environment also exert their influence. This

can be .it-nessett i n the present business world in the va rying

2 ...

3.

demands r equired for participation in economic pursuits. The

t ollo.ing study has been oonducted with regar d to the reco.gnition

of the social ta¢tors that affect wages and salaries a long with

a brief consider ation of some of the economic thought relative

to it.

The aocialeustoms , the est ablished ways of doing things,

social status and traditions are elements rel-ati ve to the eco-

nomies of society. ur socio-economic system i8 not that 'Of

our gr andparents no matter how hard 'tie try to make cOfilparlsons.

Moreover, whether we like it or not, life i ~ const antly changing,

producing an altered industria-l system at whs:nse condng structure

we can only guess. The truth of t his stat ement can be sucstan-

tis-ted in the renovatton of present day i.ndustry under catastrophic

conditions. The survey of present day -conditione both social and -;

economic show's a great varitnce from that ot ocrlY_J a year ago. 1;

nSupply and demandll ," normal I r ate" , -:and Itmarginal product.i vity" , . i '. -

may be the result of t.radition. Balli t , and custom isres.ponsible

in some measure for fixing . age and salary pa1.lm.ents. Custoas,

hablts,and t raditions a re man-made and t herefore they are not

inunutable and inevit.a.ble. Since these Bocial insti tutianB are

changeable, t hey should be considered as f actors in wage fixing.

Wage and. salary income is a dynamic, a tle.x1ble, and a pliable

thing changing with every social and cultura l advancement

and decline. A stat~ment i n r ecognition of these social

f actors is the purpose of this study.

The scope of t his thesis will not consider wa.ges and

salaries under t he existing war conditions. There are too

many detenn1ning elements which give rise to high rates of

pay during war emergencies. The problem involved under the

war crisis wo uld be material for a particuL"ir study ' in itself.

4.

CHAPTER I

DEFINITION OF TERMS - WAGE, SALARY, YONEY WAGE, REAL WAGE

~nat are the f actor-s that tend to make wage and sala ry

sca.les what they are? Why have the r ates been higher and then

lower for the same occupation? Vlby is it that those in profes-

slonal positions frequently do not recf3ive a s much compensation

as those who a re employed in semi-skilled or skilled trades?

What is the basic tator that is responsible tor the portion of

t.he national income which g.oes in the form of rent to the land

owner, in the form of interest to the capital owner, in the

torm of wages t.o the employee, and in the form of profits to

the entreprenuers? These a re challenging questions that haTe

fascinated social scientists. The answers to them a re contained

in the essential question ot how Wive wage and salar,y rates been

determined. 1

1. Carroll R. Daugherty, Labor Problems ]!! American Indust17, 164.

Quest.ions like these are absorbing , a nd controversial.. Per-

haps the best way to attack the problem is to begin with a det-

inition of terms. The common interpretation of wages and s a l aries

among the average l ay men is that wages consist of a small amount

5.

otmoney while a salary is a l arge sum. This belief is f alse

and must be corrected for it frequently happens that wage earn­

ers are paid nos much or maybe more t han salar y earners. Another

misconception exists among many in the idea that only executives

receive salaries. This is as equally untrue a s the former state­

ment.

When anyone is employed he usually receives pay, which may

be termed a wage or sal ary. The historical deve10pnent of the

\yord "salarytt may be traced back into the English l anguage to the

time of the Norman Conquest-it was the term used by the victoriou8

French. Since they were the dominant class the use of thellOrd

'Isa1ary" took on a higher tone than the word "wages ll as used by

t .he Anglo-Saxons to designate the common employees in England.

At the pres~nt time manual laborers and non-professional work-

ers are referred to a s "hourly ba.sis" or "piece rate" employees.

They are paid according to the number ot h0urs they work in a

day or week a 8 it pleases the employer. This distinguishes them

from the salaried that is weekly, or monthly basis workers.

Salary does have a. certain assuredness about it as well a s regu­

l arity. Usuap,y salaried workers are not paid for the overtime

work they do as is true ot t he wage earners. 2

2. Z.C. Dickinson, Compensating Industrial Effort, 71-72 .

6.

John Vi . Riegel defines wages as

"an amount of money which by contract is payable to an employee for his services during an hour or a day. In contradistinction a sal ar y is a.n amount of money which by contract is payable to an employee far his se rvices during a week, a month, or a year. "3

3. J.W. Riegel, Salary Detennination, 3.

It is ,therefore, to be concluded that w~lges a nd salaries consist

7.

of remunera tion received from other pers.ons in exchange for labor

or services. The si ze of the pay check does not classify it in

a particular cat .egory.

That there is a difference between a ttmoneyll wage and a.

" real If wage must be noted too. If' the "money" wage of a person I

is increa sed a nd. he discovers t hat he can buy less with his dolla r

than before, it can not be said t hat be had a r aise in "real" wag,}J.

In any occupation winning a higher money wage is onl y one-halt of

the problem of gaining a living. To complete the process the work-

er must t ake this wage to market and exchange it for the things of

i'ihieh he Btands in need. His "real" wage is a s intimately depen-

dent upon the terms of the exchange a s it ia upon the number of

dollars wbich make up his eamings. Or, quite briefly, the prices

of food, clothing , shelter, and t he like are one.-half of the prob-

lem of wage r ates. The rise in the costo! living f or 1942 was

at least 10% and possibly hi gher than that over t he level existing

in the fall of 1939. The government recently stepped in to

place a ceili ng em price levels' so as to pr event their further

rise. The prices of basic war materials such a s zinc, copper,

and scrap metal bad i ncreased more than 50% in the s a..me period.4

4. R-. E,. Summers, Wage and Prices, 15; No.. 6, ll.

The need tor pu:rchasing any of thesl' materials would make the value

of a money wage decline. Wi th a ceiling on certain price l evels

too great a disproportion between "real " and "money" wages is pre­

vented. ffReal" wages then are the economie goods that workers

secure when t hey spend their "money" wage.

8.

9.

CHAPTI1R II

BRIEF REVIEW OF rotlE ECONOMIC

TIW..oRIES AND FACTORS

The discussion in the preceding chapter has attempted to

clarify terfits~. A consideration of a few economic theories as

they have been proposed by econanists which fix wages and salaries

in a general way is the next step. Economists have long considered

the question and many theories have bef'..ll promoted on the subjec-t.

Among the earliest ot these was the theory of the Ricardian group.

Ricardo (1772-1823) during the early part of the nineteenth cen-

tury developed the so-called subsistence theory of wages. His

idea was t hat in the long run wages tend to set at a level which

will just "enable the laborers, one with another, to subsist and

to perpetuate their race, without either increa se or diminution."l

1. David Ricardo, !h! Principles of Political Econom.y and 'taxation, 80. -~

Lassalle (Ul25-1864) merely simplified RicRrdo in this doctrine

of the "iron lawrt of wages. Underlying the doctrine 0.£ 8ub8i5-

tence was the bel i ef involved i n the Malthusian doctrine of

population. If wages should be increased, the population would

increase as a result, a nd bring pressure to hear on the rood supply.

10.

This meant that there tfould be a n increa se in the labor supply

-' which would bring wages back to the subsistence level. It must

be remarked that Ricardo recognized the tact that the subsistence

level wa s not fixed a t a definite standard determined by physica l

needs. Ue sa\'i t hat custom and habits were to he con sidered.

"The power of the l aborer to support hims elf, and the family which may be necessary to keep up the number of laborers, does not depend en the quantity of money which he may racei va for wages, but on the quantity of foo d , necessaries, and conveniences be­come essential ~o him from habit, which that, money will purchase . "

2. Ibid., 80.

He makes further issue of this f actor 'When he says :

tilt is not to be understood that the natural price ot wage8,est1ma.tedeven in food and necessaries" is absolutely fixed and constant. It varies at different times in the same country, and very materia lly ditfer.s in dif­ferent countries. .It essentially depends on the habits and customs of the people.. An Eng­lish l aborer would cons-ider his wages Wider their natural rate, and too scanty to support a family it" tney enabled him to' purchase no other .food than potatoes, and ~o l i ve in no b~tt~r habitation than a mud c abin; yet these moderate demands of nature a r e often deemed sufficient 1n countries where "JIl,3.n's life is cheap", and his wants easily gat i sfled.,,3

3. lli,g.,84.

The subsistence theory has been abandoned because the product or

industry has been increased and the birth rate ha s declined due

to birth prevention.

The explanation which was complementary with the SUbsistence

theory was that of the IIwages fund" theory. It had considerable

vogue between Ricardo's day and the middle ot the 19th century

about which time John Mill(1806-1873) admitted its weakness .

It wa,s t hought thateilplGyers have a t any given time a certa in

a.mount or their total capi.tal which they use to pa.y l abor. The

amount or this available fund could not be greater than the

value of the total product turned out by the enterprise, and it

is further' limited by nec:ea-sa ry payments to l andO\mers , capital

owners and enterprisers. It consi ders capi t a.l a s a f ixed stock

of goods stored up by past effort . The si ze of the stock deter­

mines the amount to be paid .in wages. J ames Mill (1773-1836)

and his followers held that the amount ea rned will be obtained

by dividing the amount in the fund by the number of worlters .

The methods held for inc l"ea sinji! wages were tilo--more eapital or

reductiono·f the number of workers. If workers force higher

wages for themselves in a given occupation their increase means

only a corresponding decrease tor a dlfferent group. Wages we're

then controlled by supply of capital or decrease in supply of

labor through a fall in birth rate, d~c1ine in iln.'lll.gration or

11.

some other restrictive measure. This theory is said to be

inaccurate due to the fact that the amount avail able for wages

has elastic rather than rigid limits, and this permits improve­

ment in the labor status. 4,

4,. Edmund Whittaker, !! Histoty.ef. Economic Ideas, 581-8B.

The marginal productivity theory a ttempts t o explain the

general level of wages , a s well as the rates paid to the various

gradesot labor. It t akes into account the productive efticiency

ot modern mar:lagement, and it emphasizes the ,fact that production

is a cooperative enterprise r~uiring the services of all four

agents ot production., It also recognizes t.he fact that all 1'1'0-

duction dependa in the 6ld upon the effective demand or the con-

sumers. The pmponents or the marginal productivity theory hold

that employers will cont.i.nue to p.dd labor to a set sum of capital

until the ~()st of the last. unit, oJ: labor add,ed will be equal to

their prodLlCtlvity.The law of dtmtnishlng ret.urns functions in

the theory~ !n other words the employer will continue 00 hire

men as long a s he g;;.ins by so doi.ng, and hf';gains a a long as

the product cjr the ma.rginal man is;; in exces s ot the wage rate.

The workers are not paid in proportion to their effort . Em-

p10yers pay on the basis of an exchange va lue of the product

that is attributabl'e to the worker 's effort. More units of a

12.

product Cfm be made it more workers are engaged, but the l a r ger

production call only be disposed: ot it the price per unit is 1 0'19-

ered. The tot-al receipt from. the i ncreased production will not

be sufficient, to peTmii:?entreprenuers to pay a n l i beral a wage

a s they would have if a. SInaller production with fewer wor kers

he.d t aken pl~e-e.5

13.

5. E. Stein. , J. Davie and others, 1.8.oor Prob2E""ms i n America , 76-77 . . - .

Clay points out that the theory er r s in believing that the

employers !ill pay what they ~ pay. It neglects to take into

consideration that employers will pay workers the :full value of

what they contdbute to the fln1:lhed product oulZ If the com-

petition a.m.ong employers t o r labor is as keen a s the competition

among 'Wage earners t OT work. 6 1aoor is usually at a disadvantage

6. Henry Clay, Econo:nics E tbe Genera l Reader, 298.

on this eompetiti vee level.

Carl Synder a present day ,support·er of the marginal produc-

tivity theory decla r es t hat the average wage in any country is

determined solely by definite Ifieasurab~e ! act.ors-

ff ••• • the average product per worker, which in turn i s rigorou.sly determined by the amount ot capita l employed in industry, t he degr ee of m.echanization of production and the number of hours worked . 1f7

7. Carl Synder, Capitalism ~ Creator, 168.

He goes so far as to say that given certain details as to the

wealth and income per capita of a country, and the amount of

machinery employed in industry, one could easily estimate the

average wages paid. A statement of his follows:

"Neither law, nor custom, nor 'bargaining power' can affect money wages; with an artifical level of money wages, prices will also be higher, and the 1cost of living" , and the average real wage for the same volume of employment .:1.11 thus remain the same. Further, an arbitrary increase in money wages may have an adverse effect on employment, and thu3 diminish the real income of the working cla ss."

8. Ibid., 170.

In a study conducted by the Brookings Institute the same

belief is held. The research committee develops the point that

wages are affected by the inc r eased product per worker, which

in the last one hundred years ha s steadily risen in almost

exact proportion to the amount of machinery employed and to the

amount of capital invested in industry. This increase in prod-

uct seems due to invention; discovery and the creation of new

processes, and the realization of them through largely automa-

tic machinert. This in turn ha s required a vast expenditure of

capital. The ultimate conclusion to be gathered from this work

is that a large capital investment is the det~~ning. factor in

high wages with a resultant higher standard of living. 9

9. The Institute of Economics of the Brookings Institute, The Recovery Problem !!! ~.!!.&:.., 525.

-------------------------------------------------'

1.4.

The bargaining theory had for its promoter John Davidson

(1869-1905). He believed that for practical purposes, l abor

was a commodity whose price~ like the prices of other com­

modities 15 determined on the market by a bargaining process

between buyers and sellers.10 The sellers of l abor are workers

10. John Davidson, .!h! Bargaining Th.eory of Wages, 164-173.

15 •.

and the buyers of the l abor are the employers. The exact point at

which wages are fixed depends on the comparative bargaining strength

of the two forces. However~ this explanation does not go f ar

enough for it f ails to demonstrate clearly how it is that some

groups have more bargaining power than another. It tails like-

wise in not being able to account for the high wages paid in

industries where workers are unorganized. Then too, there are

limits to what an employer can pay as there are limits to what

a worker will accept for his services.

The preceding theories have been concerned with wage rates

in general. Mention must be made that economists have also

studied wage differentials in various occupations. Cantillon

(1680-1734) lias among the first modern writers to consider this

question. His idea follo\vs that pay should be made according

to attractivens8 of the occupation to the worker.

"The Crafts which require most Time in train-ing or most Ingenuity and Industry must necessa rily be the best paid ••••

The Arts and Crafts which are accompanied by risks and dangers like those of Founders, Mar­iners, Silver miner, etc. ought to be paid in proportion to the risks.

t~en over and above the dangers skill is needed they ought to be paid still more, e. g . Pilots, Dlvers, Engineers, etc. nil

il. Quoted by Edmund Whitta.ker, .2]2. ill., 597, from CantiUon "Essai SUF l a nature du commerce en general," 21.

Cantillon was aware that honesty to an employer was also to be

a source of higher pay.

"When Capacity and trustworthiness a re needed the l abour is paid still more highly, a s in the case of Jewellers, Bookkeepers, Ca shiers and others."12

12. I'bld., 597.

Cantl1lon knew too that certain g roups did not reproduce

themselves as rapidly as others. The lower the standard of

living the greater the reproduction; the higher the standard

of living the lower the reproduction. This necessarily 'Would

control the labor supply within each group. Joseph Harris

(1702-1764) and Adam Smith (1723-1790) were close followers ot

16.

Cantillon in their thinking on wage differentials. In

fact they merely expanded Cantiilon's doctrine. N. W.

Senior (1790-1B64) along with John Mill a.dded t o this list

of reasons for wage discrepancy by including the f actor of

occupational and geographical immobility. J.E. Cairnes,

(1823-1875) a contributor in this school of thought,brought

forth the conception of non-competing groups. As this theory

developed the i mmobility bet"ween occupations wus stressed. l )

13. Ibid., 597-607.

J.R. Hicks in his book ~ Theory of Wages published in 1935

considers the factor of wage differentials in his discussion

of individual differences, and the working of competition.

The wage differential theory has been studied with increased

attention 1n the present day.

17-.

CHAPTER III

SOME SOCIAL FAC'l'OHS AFFECTING WAGE AMD SALARY LEVELS

The preceding chapter ha s been devoted to a brief sur-

vey of some of the econom:tc thought in regard to the deter­

mination of wage and sal a ry r ates. The SUbsistence theory

maintained that they would a l ways be a t the bare level of

subsistence, but that it would va ry depending upon the

habits and customs of the people in various countries. The

wages fund theory stated t.hat a .fixed fund was available and

the worker could receive only his portion as it wa s divided

out by the number of workers in the mtll!ket • Collective bar­

gaining made the matter of the superior bargainer the deter­

mining element. Uarginal productivity taught t,hat each labol'-

er would tend to receive exactly what the marginal worker pro­

duced--the product was a fixed amount beyond which wage increa ses

were not. possible. The wage differential theory considered the

occupation it.self along with the mobility or immobility of the

workers.

Social Stratification of Gainfully Employed

The great r ange in wage a nd salary incomes observed in the

world of affairs today have to do with people in dif.ferent oc-

18 -

cupations. The working population i s divided into social

strata whose lines of demarcation are sufficiently rigid

to remove their respective groups from competition with each

other.

Many att empts have been made to classify the gai nfully

employed along 80melines of social stratification. A pyra­

midal classitication will illustrate one auch type.. The divi-

sian 1s made along lines of six groups. At the base a re the

unskilled workers in all occupations-that is, manual labor.

In the next section are the manual workers with (l, limited amount

of skill whose occupatlons require a certain amount of mental

alertness, for example, a machine operators or motormen . The

third group consists of skilled workers containing within that

classification such workers as machinists, ~arpenters, plumbers,

and electricians. The fourth cla ss in the pyramid 1s comIX>sed

of "white collared" workers who man the offices and clerical

staffs of business and similar enterprises. The fift h group

conta.ins the small business groups along wit.h the profe ssional

men. The sixth and t op of the pyramid has the "captains of

industry" • This topmost part of the pyramid inoludes wi zar ds ,

of finance or personages 6f unique abilit7.1 In Taussig's

1. S. H. Patterson, Social Aspects or Industry, 145.

19 "

claslIitic.atlon these l ast two CI.1S8eS a re combined into

one. Borak!n has a simila r cone sbRped a rrangement" but.

ha.s limited his to t hree grot:ps .

t'The members of almos t any ·occupational group a re divided i nto at l~a$t th~ p1'1ncipalstrat a . First thcent.repreneure , or tM.st.ers,who ,are eeonorneally i ndependent in their occupational activitr, who are their own. "bosses" and .ho·se Activity conailil'ts either e)(clusivel..v or at least p!1.rtlally, in an organization and control of their bus:lne.s a and t heir {:;mployee~. Second, the higher employees, such as direct.or, managers, hlgh engineer,$, members of' t he board of direc't·ol"e of the corporation, and so on; they are not the owner of the "business!} ; they ha.ve above t~ a bo8~H ther sell their s-orvice and receive salary; t hey pl aya very i mporLant part in t.ho organiza­tion of t.he II pursui t,1l 1 aod th:eir 'occupatioM1 f unctions consist in i ntellectual and not manual work. Third, the ,.,ag~ EMl.rO$l'S, who, like the h1.gherempl oye-8s !sell their sorv'i'ceG lor .. sala ry, but, in contradistinc t ion to the!fj, they r eceive l ower r~xmerat:.1on, a~ subordinate in tWlction, being t1ainly MnUr"ll workers. In tum Men of t hese cbsses is atrati.fbd i nto many ranks. lt2

2. P. A .. &lrokln , Social Uobll.1ty~ UYl-lOO.

'to t he degree that har d lines ofsodd stl'<lt.U 'icatien

separate tbese gmups making 8. shift from one group t o anot her

:extremely d1fr.1cult, so will t.he normal wage r ate change in

ellch ,group. It is t.obe noted t. hat t his classification 1s

20 •

The Social Pyramid3

3. S.H. Patterson, £E. cit., 146.

21.

"Captains of industry"

a nd professional

sala ried--"white collared"

Skilled workers ---

workers

untrained and un­skilled workers

based on the principle of intelligence required for the

type of work while correlative to this is the degree of

control ea ch group has on its own level. According to

its posit ion on the social pyramid a decreasing or increa sing

amount of pay accompa.nies each group. 501"OJd.n Rives an ex-

lanation f or t hi s occupational stratification:

"At l east two conditions SI'lf'JIl to have heen fun­damental, first, the importance of an occupation for "the s urvival and existence of a group a s a whole; second, the degree of intelligence neces­sary for a successful performance of an occupa­tion. The social i mportant occupations are those which a re connected with the function of organization and control of a group. Their member~ suggest the analoBY' of the locomotive engineer, on whom depends the fate of all the paseengera in t he trai n . 'fhe occupational groups de..'lllng with the functi·ons of social organization and control are placed at the cen­ter of the "engine of society/I. Bad behavior of a soldier T!ll1;Y not have a great influence on the whole arm;r, or the f ailure of a manual worker ma;y have little effect on others, but every action of a commander-in-·chief of an a rmy or t he vlhale group over which he ha s power of cont rol. Furthermore, being at the control­ling point of a ttsocia1 engine", by virtue of holding such an ob.1ecti vely influenti~l pla.ce, t he cor responding occupatlonal grou;>s can se­cure for themselves the maximum of privileges and power. This expl a.ins the corrHl ation be·· tween the social importance of a n occupation and its rank in the hiera rchy of t he occupa­tional groups. Then, too, a successful per­f ormance of the occupational functions of socia l organization and control demands a degree of intelligence considerably greate r than is essential for successful manual work of a routine cha r acter. Consequently, the two conditions are closel y correlated. with

22,.

one another--a successful performance of I;.he functions of organization and control demands a high degree of intelligence, while a high degree cf intelligence usually is manifest in the achievements directly or indirectly connected wi th the organi­zation and control of a group. Hence we may say that in any given society the mo r e oc­cupational work consists in the performance of the functions of socie,l orga ni zation and cont rol, and the higher the degree of in­t elli gence necessar y for. it s successful per­formance, the UlOre privileged is that group and the higher the rank docs it occupy in the interoecupational hierarchy nnd vi.ee versa. 114

4. r. A. SorbRin, ~. £4&., 100-101.

Effect of Mobility V!ithin Occupational Groups

Within each group, however, there ia a stabilizing factor

and wages ranain about the same. This is particularly true of

the unskilled and the semi-skilled group. The unskilled l aborer

may trc:.nsfer from ono job , to a nother in his own class a nd re-

~~1ve about. t he sa'l1G pay. , He may SYleep streets, dig ditches

and do all such t ypes of wo!"k tha.t c,,11 for no particular

degree of skill. The same goes for the semi-skilled workmen

such a s t he motorman and the machine operator. He may change

positions and expect t .o receive comparatively the same rate

23 ~

a s in his previous line of work. In this intraoccupational

mobility there is a tendency for remuneration to be on the

same l evel because of the l llck for definite requirement.s in

the occupations.

The other cla sses in the socia l pyramid can not move

a s readily in their occupationa l cla s5 for they have spent a

considerable length of time lea rning a more advanced type of

work. The same degree of technical training t.hat it takes

to be a plumber will not fit a person to be a. ca rpenter or _a

brickla.yer. Carpenters must be content to be carpenter, brick­

layers must be bricklayers and so on through the skilled trades.

This l!k"1Y be t ermed t he specificity of a Biven occupation. 5

5. K. f, . Bould.i..ng, Economic Analysis, 20'2.

The skill.ed crafts call for very little or no fol"lllnl education,

hence the yearly supply of newcomers qualified to learn the

trade is l a rgf!) and us a re"sultthey e qualize the numbers in

the different, trd.des in protxlrtion to t.he demand for their

services, by applying in increa sed volume for adl1U ssion to I

the trade l'zhich for the t ime being 1s unusually attractive.

The pe.ople in the fourth elassificntion have money in­

comes "hich cha.nge but slightly in their own given group. The

24.

'Wo·rke.:rs i n this group can transfer trom one s pecific calling

to another with greater facili ty than can the ckilled craft s..­

man. This ann be s een in the case ot the .individual that

change.s from being a teller in .n bank to GOfile other such re-

lated .m:r't.:.

In the professionnl group i;,he 'llOrK"Ol" is usoo.uy co~itted

to his occupation f(n" n lile time due to t..'1e long expensive

prelimina ry t.1";1tning requ5.l'ndt.o t:'\<',ll.ter !! ne\f prrJf'csaion. The

distribution of .labor in tb~ professional a.nd eapt.,gins of in­

dustry positi()o, is limited by .family tr..~dtt1ont innnte ability,

aptitudes and desires. Tho greute-r dirrerorlCe i n wages is due to

the difference ;In t,h~ sodal mportanc.e of the! functions per­

fomed by the vfl rlouS social chsse$!. Soci.ety tlttaches more

importane.e to the :r.ork of the areh!.tect t han it does t o the

cement 'lIJQ~er, the. WlaoD, or the e arpentc.l" who hal ps. t o c,arry

cut the plans oltha de$lgl\er. Th~ skill of the surgEon is

.consider ed }1!rlr e impo.rt.ant . t hall the l't*e'epe:r of str~te lI1h.o

helps to es .ny out the health UY1S of f:.ile Clty" The socia l

seniea .of a l al'lyer 1.$ oon3id,~red mnr e valu;':lh le than that .of

the d1~f~r of ditches . It isevidQnt t hat tbe economic forces ,

in the l abor marklrt. do not set valu66 on tunetionsbut on in­

dividuals; 1t h the 1ndb;pensab111ty Q.t the 1rJd1 vidual which

25,.

determines his sha re in the way of pay.

Rightly the prestige attached t o a caning mould be

proportional to its service to the COmJ:1unity. At the pr escnt

it i s judged by wha t society fee.ls is i mportant r ather than

some objective det ermintmt . I! we questi oned which occupations

were indi~pensable to modem civi)..ization the farmer would per-

haps take f irst plG.c e . The ditch digger, tradesman, sweeper

of streets a nd other closely anied oceu~~tions would r ank high.

Intrinsic values tend to go unrewarded and 'Worth t ends to be-

come shaped according to talse s t andards ; f alse standar ds a re

erected and f a lee values defonded which ha.ve no l ogical r eason

for I?y.istiug except t hat thCj r r ost upon the power of tradition

and ·!l.re therefore " set" to t heir adherence.6

6 . F . R. Fairchild , E. S . F'urniss, N. S. Buck, Elementa.ry Economics, 430-434.

The ilnmobility of non-competing groups accounts in l a r ge

mea sure for the difference of wage and sal a ry levels. If mem-

bers of one g roup i n the social pyramid could pass over with

ease to the higher group wages could be equ-9.l.tzed. Wage dif-

ferenees persist in various occupational levels becRuse of

the immobillty of the non-competing grad.es of l abor. This 1m-

26· ~ .

mobility is partially due to inborn abilities. Native ability

differs enormously between the brilliant executive and the hod

carrier, bet~een the sensitive touch of the pi anist and the

igoor.&nce of t he r outlne machine operator. The inequality of

inborn eapecities is determined by scientific tests of intel-

lectual, emotional and physical qualities a s well a s by common

observatloll. 7

7. L.D. ['.die, ~~:' 2!,inciplos ~ Problel:ls, 357-359.

From Sorokin, who has made a profound study of occupational

mobility, we l earn:

"o t her conditions being equal, first. witbin the same occupation the more qualified nnd better paid strata shift les s intensively ttan the less qualitied n nd more poorly paid g r oups; second, members of occupations which disappear shift more intensively than members or occupations which develop and pros per; third, unskilled labor is more mobile than skilled labor; Business and professional groups a re likely to be still more stable even than the group of skilled l abor. In !:! country where a.ericulture does not r a.pidly disappe~~, t he oecupatiolli~l mobility of those engaged 1n agriculture is likely to be low; in a country where agriculture dies out., the shift­ing of agriculturists to other occupations is likely to be high. liB

s. P.A. Soroki n, £ill. ill., 426-427.

27~

The ecnclusicn is t l'wt the more :rt.rir~,ent th~ requirement,s und

the ~reater the pa:r fer :'1.dr,:i3sion tnto F:fi occupatioru:-1 g roup t.he

l ess is the possfbilif~:r for change ~nd vice Versa .

Trends of C~rl";f" OVer tti thin f1ar<lily Occu;:nltiol1<!.l G'rOUPfl

iilS{} !:ignifi cl;nt io tho tr~nd t.o,nay of cnTr:r over of occupa-

t-ions tro~ father t.o SOB. Sw"~,rj.zine tl'l{~tiy-three studies Sorok-

in states that the maxJJUW"1 fa·.1nsr,...iesiol1 of occupation from l ather

to ~'On is O-oout 7O'!~the ItU.rU:m'Ot! rane:t~g from 31% t.Q 1.0%. The

change de ca not. occur by lea ps .. rod bounds but. mor e or lees s;ra.d-

nally. Be :notes t l'15t i n V(l(!~t..i()n.ll d()l'1"ndtng s:pacl~l training (lnd

skill or tha po8a~~g{)iQn of gra'lt capltal:o iln~, in most. ot t hose

having !'!lr';lrked soc:t ;;..l pr'?stige , tilere is leaachange from gen­

eration to generation than in other occupations. 9

9. ~., 443- 4t.6.

In t! survey of 124-2 people eC>llprisiug 7'1 of t.he ~lork1ng

population of Snti .Jose, California it 'U<'oS recordf.!o th~t or

t.he sons of unokllled wON ere 41. 7% 1"0110-';6d in t heir f ather s'

f oots t eps, 16.5~' b~ame eetni-skll1ed~ ].,3. 7% elerke" 10. 31> pro­

priet-o'rs, and 4 •. 1% pt'Oteesionala.lO Sorok'in in his research

10. P. E. Davidoon and R .. n. Anderson, Oecupntlonal Mobility l!! M! American COll7Jl!unitl", 20 ..

28.

and collection of data concerning occupational transmission

comes to the conclusion that

I' ••• in the majority of ca ses the sons filter the occupation or the fathers in a greater proportion than any other one; on the other hand, that each of the occupations is re­cruited principally from the 50ns of the t athers who have such an occupation. This lIleans that a part ot the population during one or t.a generations, st.ill remain in a regime like a caste system."ll

ll. P. A. Sorokin, £E. cit., 438.

From. these and various other studies there seems to be a

derlnite tendency tor most sons to continue in their tathers'

occupation or enter a closely allied one. It may be noted though

that there is much more mobility between occupations ot the same

social level than between those or different levels. The above

information also proves that only a relatively small proportion

or children trom unskilled l abor succeed in entering the higtler

professional oceupat.ions or in becoming captains ot industrt.

The son of a manual l a.borer even though he has the mental

and physical ability to become a l awyer or doctor is less likely

to achi eve that goal than the 80n ot a professional man. The

reasons are evident. There is the troubl esome problem or obtain-

ing the requisite fonnal e ducation. Thi's entails financial re-

sources which for him are frequently unavailable. Too, he will

29.

probably receive very little encouragement from his parents for

they are unable t o meet the expense. It may happen frequently

that he will never learn of his inborn potentialities. The

children of the higher grades of vlOrkers have every opportunity

t o make the roo st of t h a r t al ont s . 'I'hey ar e e ncouraged, inspired,

and educa.ted . There is no way of measuring the amount of t alent

tha t is lost through the inaccessibility of pursuing advanced

educa t ion. I t is quit e probable though t hi'l.t the stratifica t ion

of opportu:u.ty has r esulted i n a tremendous loss for society 's

advancement due t o t he store of untapped ability in that group.

What is meant by opportunity is 'Well s t ated by A.J. Todd:

1IBy opportunity, I mean thechRnce to b e well born, to be decently ~a!'ed tor in childhood, to be decently educated, to play; a chane to develop one's productive skil l; a chance of getting into t h e pla ce where one l s abilities, native and acguired, can express t hemselves to t hei r highest; .. !lccess to all t he great heritage ot culture that the ages have compounded a nd s ent down to us ; and the chance to participate in every nf}r .!llal a ctivity for which we are ri tted. lI12

12. A.J. Todd, ~ Sci entific Spiri t 1!,!ld §OCl. <1l; ~, 197.

Distinction Between Prof'e.3/51on and Occupation

An analysis of the hierarchial a.rrangement of the social pyra-

mid will bring to light conditions that manifest va ria tions ot

30.

amounts of pay lIithin the same classitication. To distinguish

between a profession that calls for a comparatively high degree

of skill tor mastery 2.nd a trade which necessitates little or

no forn.al knowledge is essential as each contains factors rel-

ative to the problem of payment. · Tbe F.ncyclopedia S!l Socia l

Science defines an occupation as

" ••• Ft specific activity with h market value which ~ln 10m vidual contirm .. lly pursues for the purpose of obtaining a steady tloll of inco~e; this activity a lso determines the socia l position of the individual. l1 13

13. Arthur Salz, "Oecupation", Encyclopedia of Soeia~ .~.ciences, 11:424.

Bogardus in his chapter on 110ceupo.tional Groups" defines occupation

as tI ••• any type of activity to 'Which a number of persons give themselves regularly for pay."

He goes on to say tha t a profession is :

." ••• a specializedtyp~ of occupation which ma.;.ntains codes of et.hics and formally takes meJltbers!lf away from those ",ho a r e proved un­worthy • .

14. E.S. Bogardus, Sociology, 225.

The Industrial ReV'olution was the po\'1or bohing specializa-

tion. With specialization in industry and agriculture there de-

31.

veloped many occupations with accompanying attitudes. A pro-

fession differs from a trade in tTh~t the fonner renders a per-

sona! service which f avors the development of sympathy, con-

f'idenee, and honorable reletions. There is definitely an ob-

staele to the growth of l a r ge scale production in this. A

trade deals pr.unarily with transforming material things into

useful commodities. Large scale praduction 115 characteristic

of occupational g roups in contrast to that of the professional

group.

A more complete definition of a profession with its re-

quirements and standa.rds is given by Roscoe Pound when he s a.ys:

"By the term profession we mean an organized calling in which men pursue some l ea rned art and a re united in the pursuit of it as a public service because they may make a liveli­hood thereby. Here from the professional standpoint there a r e three essential i deals­orga nization, learning and a spirit of public service . The gaining of a livelihood is not a professional consideration. In f act the professional spirit constantly curbs the urge of that incident. 1115

15. Roscoe Pound, "VJha.t Is A Profession", Review of Reviews, 1936, 94:84.

A profession a ssu:nes responsibilities for its members a s

to the quality of the services it .renders. The members must

give evidence of superior ability so a s to distinguish them from

32 ..

amateurs. No person ha s right to engage in a profession unless

he can show capabilities superior to the person who seeks his

patronage. Professional codes deliberately prohibit certain

kinds of conduct on the ground that though they may be profit­

able to the individual they a re forbidden if they bring the

profession into disrepute. The doctor or lawyer does not do

piece work on the basis of so muoh for so mUCh; the surgeon is

not pai d according to size of the incision that he makes; the

preacher is not recompensed a ccording to the merit of his ser­

mons nor does he compose them. with regard to the amount he has

all'ead~" .. eceived. Neither does t.he teacher refuse instruction

nor gu.i.dance to a child even though given outside of school

hours. She is not paid for the service she renders t he youngster

at the time, but her sense of duty demands th at she comes to his

assistance. If members of any of these four professions gave

service only according to money value, they would certainly not

understand their calling. Yet exactly in this way does the

tradesman operate. The clerk who sells two yards or cloth and

finds that he has given three has no qualms ot either cha r ging

the price tor the full three yards or cutting orf the excess

yard.

True it is that the professional man must live while doing

his work. Consequently the public accords him a tee, stipend,

33.

honorarium, or salary to cover the mode of life which is thought

appropriate for him. The kind of life and the consequent sca le

of salary is usually designed to secure three essential elements

in his worle-freedom, efficiency, and. dignity. 16

16.C.F'. Taeusch, Professional and Business Etr..iea, 13.

No doctor or l awyer in good repute will advertise, solicit

for patrons or speak disparagingly of his fellow associate's

work, nor will he refuse aid to those in need. The codes of

34.

ethics . i n his profes si on r estrict such conduct.. The whole tenure

of th e ~des is t.hat of service.

n,A profeSSion has for i ts prim.e object t he ser­vice it can render to hUl!l<j\ni ty; reward or fin­ancial gain should be B, subordinate consideration." (Principles of Medical Ethics, Am. Med. Assoc ., .:Jhap. i, Sec. 1, 1914.) •• h.aw and medic:i.lie are under certain obligations _ to render service to those who cannot pay for it: "The poverty of a patient a nd the mutual profesSional obligation of physiciuns should command the gratuitou s ser­vices of a physician. But institut.ions endowed by aocieties, and organizations for mutual bene­fit, or tor accident, sickness and life insur­ance or for analogous purposes, should be ac­corded no such privileges .H- (Same a s above Cbap. ii, Art. VI, Sec . l) ••• A client's ability to pay cannot. justify 3 . charge in excess of the value of the service, tho~h his poverty may require a less charge, or even none at all." (Chic. ~ar Assoc., ~ of Et.hics, See. 12, 1910)." ... ·{

17. _Quoted by J .M. Cla rk, Social Control of Business J 207.

Social Significance of Prestige

The importance that professional groups place on social

status or prestige accorded to them in their occupation is

significant. Money is not always a requisite for prestige

for if it were the clergyman and the scientist, besides other

members of society, would canrnand little or none. True, wealth

does offer possibilities of power, but other forces have their

determining elements. Wealth determines SUCcess when the chief

object of a vocation is money making. Remuneration is incidental

in the ministry, l aw, a nd medicine. It is not surprising to

hear of a good "poor" clergyman, a good "poor" doctor, or a good

"poor lawyer, but a good "poor" money maker contradicts his pur-

pose.

Prestige has been accorded to occupations by tradition.

Some of the professions have obtained their members from the

higher castes in society and consequently have acquired prestige

on that score. Prestige has also been given to work as it is

judged socially important. The importance to some degree is

in relation to indispensability. But the question a s to whether

the garbage man or the lawyer is needed more still remains un­

solved. However, as to the degree of prestige the evidence is

well known. Even though a bricklayer receives $20 a day and a

35.

clergy man perhaps receives $20 a. week, the same social

position would never be meted out to the layer of bricks

a s to that of the clergy • . The kind or service that is ren­

dered by the lawyer, doctor, or clergyman is for critica l

situations rather than normal. The,y hold the solution for

the intricate and unusual problem or task with which the aver­

age layman is not acquainted. A person in order to live must

have food and so he soon learns how to secure it for himself.

The fact that he may become ill once a year and is unable to

administer to his needs gives the person without whom. he can

not get along a rating of indispensability. The analogy may

be made for all the professions. Social utility under crisis

situations such a s marriages, illness, birth, death and liti­

gation give glory to the individual pursuing it. Hence, the

fanner~ milkman, tradesman and 60 on through the lower levels

of the social pyramid are not. judged to be so socially im­

portant because of the daily routine need of their duties.

Dramatic usefulness appeals to the people engaged in a

profession to such an extent that compensation may be over­

looked. In the early history of the teaching profession it is

a known fact that leading thinkers were horrified to learn

that tutors were receiving money for imparting knowledge. Even

36.

today the minister is not assured of a fixed salary. It still

happens that doctors prefer not to send bills to their patients

because of a professional spirit; they expect the pereon's sense

of honor to function in paying what is owed. Noticeable, too ,

are the few instances whereby professionals resort to l aw to re­

ceive payment which is justly theirs. The sta nding a ccounts

which doctors and l awyers have a re amazing. They know definitely

that they will never be paid. In addition they donate their ser­

vices voluntarily to those who may stand in need of them.

The difference between industry as it exists today and a

profession is unmistakable, The main objective of industry 18

the tinancial return. The essence of the profession is that

though men enter it for the sake of livelihood, the mea sure of

their success is the service which they perfonn and not the

!lIDney gains they harvest. They may grow rich or thei maT remain

poor but the ideals of the profession still persist. The public

does not insist that professionals make money but that they secure

tor society health" safety, good laws, or knowledge. Any conduct

on their part lIhich might increase their salary is not to be

practiced it it is in violation of their code of ethics. In

the world of business one is paid on the basis ot goods produced

or personal worth. The professional man has one quality--his

best. No physician will merit respect it he f ails to perfonn

37.

equally well for rich and poor.18

18. E. A. Ross, Principles g! SociQlosv, 472-475.

The advantages for self developnent and the satifaction of

contributing something to the advancement of society, though not

measurable in terms of real money, 1s often as acceptable a s

though it were. This could be considered a psychic income. It

is manif'ested in military leaders who receive their pay largely

in titles and decorations, doctors in alleviating dist.ress , l aw­

yers in bringing about justice, public officials in prestige,

and seientists in satisfaction. The non-monetary income advan­

tages are played off against the monetarydisadvanteg~e.

Variants of Human NatUTe

Difference in inbom ability is a factor to b e considered

in wage a nd 1.!alary payment. Natl ve ability varies sharply as

between the talent of an opera. singe,r ' and the mediocre char­

woman. The inequality of inborn capacities finds itself to be

an important. determinant in the way of compensation. To be

able to read is not necessarily to be able to read theology,

philosophy, or physics. The point is that the professions re­

quire not only symbolic faCility, bat such a facility in a field

of highly abstract symbols. The proportion of the population

38.

with ability to carry on highly abstract thinking is bound

to be small. It becomes smaller as each profession develops

a more and more complex and profound body of science. Today

not even the average college graduate can hope to understand

the contents ot medicine, l aw', theology, or science unless

trained to do so. Persons of unique talents are i n enviable

positions. Whatever service they render is paid for on their own

terms, or at any rate so generously that we are tempted t () e.~­

cuse it on the grounds of a virtual monopoly. Great artists,

athletes, or men of r are t alent may on t he principle of native

immobility be paid large sums.

To the inequality of native ability may be added the in­

equalities in sparsity of given grades of population. The

upper strata of labor shows the smallest birth r ate. As a

result there a re few children a t the top of the social pyramid.

Birth limitations decrease the labor supply for t hat classi­

fication. In opposition to this the number of children in

families of low paid workers is high. Large families supply

the labor market with a surplus and therby pull down t he amount

of money in the pay envelope.19

19. L. D. Edie, ~. ~., 357-358.

That wage and salary payments are guided by the personal

equation is not a \1ell known fact. Eubank says that individual-

39.

ity is the "attribute of uniqueness which makes each of us

stand forth not as robots, cut by the same stamp, but as in­

dividuals, ourselves alone." 20 In other words this or that

20. E.E. Eubank, Concepts .2! Sociology, ill.

trait is a distinguishing characteristic embodied i n our own

personality. Personality is t.he s um total of what others think

of us. Employers judge t he worth of t heir employees on a per­

sonality basis and often pay in accordance. The importance of

personality a s an effect in pay may be negligible for the un­

skilled worker. The ability of an employee to get along with

subordinates, equals, superiors~ and eustoll1erS may have little

or no result as to the amount of his remunerat ion even in the

skilled group. Product ion and skill in the performance of his

a ssigned t asle will be the all importa:lt regUlator. However,

tor managers, executives, professionals, and the like, Ol":·-­

sonality is bound to be a vital f actor. It is recognized, and

justly 80, that people are individuals with temperaments, ap­

pearances, m&1ners, and mannerisms. At one time versatili ty

or alertness is demanded; at another tUlle t act or poise; then

immediate response to a critical situation; and again tenacity

or firmness with an annoying problem. 'these are all traits in

40.

an individual that gives a clue to his worth. The ability

ot a person to meet obstacles not studied previously and to

solve problems at the given time is a supreme gitt-a thing

in itself. That this is receiving increased attention can

be seen in the establishment of personnel departments in the

world of business. Personality is not a fixed thing, wished

on a person at birth and there to remain changeless; it is the

sum total of living, reading, thinking, and individual initia­

tive. Business pays a high price i'or this indefinable quality

called personality. It is increasingly becoming a clue to the

employer as to the payment he is to make for the Vital factor

of personal make up.

The worker" himself, has to present his individual self

for the job, and his human nature is an all important factor.

I~ature is not impartial in the distribution of her gifts. A

group of children in a nursery is obvious proof of that. Some

youngsters appear attractive instantaneously; sorne are completely

lacking in their appeal. The little girl who 'Was a homely awk­

ward baby is regar ded a s an interesting woman, the boy 'Whom

everyone passed by is l auded for his executive ability. Every­

one admires distinct individuality and the traits that belong

to it, be it quickness of comprehension, tact or poise, self

assertion or an imperturbable mien in a vexing situation. Con-

41.

sequently these qualities do receive their reward in the

way of greater remuneration.

Social Heritage

For a certa.in class of people social connections and birth-

right are decisive factors. By this is meant the already ac-

quired social position of parents whose cl:lildren find their

way made for them when they enter the economic market. The

bet,ter the social standing" the wider the circle of friends;

the more i-mportant their social and economic contacts the more

their children are :.t.t.le to profit. The eons and daughters of

these people are not always paid on a scale ot their actual

accolI\plisrunent. True, their traint ng and productivenefls count

to some extent, but upon further reflection it must be admitted

that discrimination exists in some degree.. Other people start-

iog with the same experience, aptitude and potentialities are

not paid on the srune scale as the favored few. Under this

system of nepotism blood ties are a determining factor in the

way of payment. This may be a negligible factor but is one

not to be ignored completely.

Time and Tr-aining Involved in Mastery

It is a. well-known fact that the amount of time required to

42.

adapt a sldll has been a cause influencing the pay of workers.

It is often necessary for a man to adapt his skill and knowledge

t .o t.he pa rticularcondltione msting in a new position . Manual

skills are re.qm.red i n some sal a ried positions , such H S those

of typists, calcul at ors and duplicating machine operators. The

characterist.ics of skilled manual work are sai d to be precision,

speed, compJ.<£, .. ty~ or i ntricacy of manua l processes , «.nd va riety

of specificat. ions , lMterlals, and assignments t o which thE> operator

may hal'e to ad just hi.s actions. Inexperience in werk is an impor-

tant source of loss to companies t.hat must I'!-~place workers. Then

t oo, the ine::x:perlenced professional ruan must accept l ower pay for

his servtces until he has a fuller and more comprehensive knowl-

edge of t he duties asslgnedto hIm. The t act tha t compa nies often

t1mes pay their e;nployees by the piece r ate system r ather than by

a straight hour vlage proves that empl oyers r ecogni ze the merit ot

ski ll adaptation.,21

21. J. W. Riegel, Wage Determination, 33-34.

Another point wldch is related to the prestige element as

well a s to wages a nd sala:ries is the amount a.nd kind of theo-

retical training required for the mastery of a vocation. The .

highest ranked occupations eonsist of a group of so ca lled

43.

learned professions requiring from five to eight yea rs of

formal training beyond the high school level. It is the

"formal" training a spect which seems to be the potent prestige

and pay-producing ele.\'l\ent. If it were the length of training ,

then trades requiring a long period of apprenticeships should

receive as much prestige and pay as the learned professions.

However, the length of time that is required to learn a trade

ha s in some measure r esulted in determining t he amount of wage

to be paid. The time r eq uired to master a profession also ha s

a bearing upon the r ate of pay a s compared to the unskilled

worker and his lack of tra ining . The more of an education either

formal or infonnal that a person pos8esse8, the greater the in­

vestment which has been made in time, effort, and money. Howard

Bell in a survey found a high correlation bet ween grade attain­

ment and employment in t he higher paid types of jobs. 77% of

the elementary school graduates were in semi-Skilled, unskilled

and domestic personal fields; 82% of the college graduates in

profe8sional, technical or office-8ales work. Of all youth

questioned over one-half r a ted their education as of considerable

or great economic value. 22 It might also be stated that when an

22. Howard Bell, ~ Tell Their Story, 140.

44.

employee devotes himself to a s pecial need of an employer,

he invests himself in the enterprise and therefore his com-

pensation may be influenced directly.

In connection with t his idea of time spent in training it

is appropriate to quote Dr. R. F . Cla rk in regard to sal aries

paid in va rious walks of life. His study wa s based on a period

(1920-1938) which includes broad fluctuations, embracing the

curve of ea rnings that rose through the 20' s to the peak around

1929, dropped to the bottom of the depression, and started rising

again the last few years. It also included all degreeso! ex-

perience.. This scale is likely to continue to show the same

corresponding rate of pay for workers in the next twenty yea rs.

Profession

Medicine Law Engineering Dentistry A rchi tect ure Coll.ege Teaching Journalism Library Work Ministry Social Worle Skilled Trades Average for All Gainfully Employed in the U.S.

Average Yearly Earnings

$4,970 4,680 4,460 4,230 3,790 3,020 2,110 1,990 1,960 1,680 1,410

Public School Teach-l,335

Nursing Office Workers

ers 1,295 1,070

Average Li!etime Earnings

$239,000 232,000 238,000 216,000 205,000 160,000

98,000 94,000 87,000

118,000 62,000

70,)00

2),000 45,000

45.

Profession Average Yearly Average Earnings Lifetime

Earnings

Unskilled Labor $785 $32,900 Farming 620 29,500 Fam Labor 475 24,700 23

23. R.F. Clark and W. A.H. Birni-e , "Row 'Much Can I Make?", Ameri-c an Magazine, 1939, 128: 94. -----

Unique Abilites a nd Attractlvenss of Position a s Re­muneration Determinants

In executive positions wages are conditioned to some extent

by the dependence that must be placed upon the integrity and

honesty of effort of a n employee. A company must often rest

upon faith in its employees to carry out an efficient adminis-

tration of its business. It also happens t hat close supervision

of them is of little a vail or impossible to give. Myron Taylor

who has collected a salary of $166 f 786 a year has this to say:

"Experience a nd tal. ent are a man' 8 capital. One of the most difficult problems of admin­istration is to find men of desi rable quali­fications.. The matter of compensation is minor for the whole capital of the company is in t heir hand, and their responsibilities are COlilmensurate w.1th t 1;16 size df the enter­prise. "24

24. UyronTaylor, "Salaries Va. Wages", Literary Digest" 1936, 46:34.

I

46.

~

The top r anking sa l a ries for the year 1939 were re-

lea sed by the Trea sury Department in 1941. They are a s

follows: Gary Cooper $482,819, T.J. Watsen$442,56o., G..lN.

Hill $420,299, F.A. Countway $)83,210, w.s. Knudsen $372,

366, James Cagney $368,333, Jehn Ford $320,000, A.A. Sem­

erville $278,486, E.G. Gr ace $271,224, Sonja Henie $249,166 . 25

25. "Sala ry Teps", Newsweek, 1941, 18:19.

These were t he ten top ranking sal a ries in the United s tates

for that yea r. Where there are enly a few specialized in a given

type of work compensation is high. It is easily discernible

why a movie actor or a skating queen obt ains $200 a day, a ca r­

penter $8 a day and a shep girl $2 a day.

It may be feasible here to quote some of the sal aries earned

in a year by the leading executives as well a s the sal aries they

paid their workers for a week. The seventeen executive's sa l aries

quoted below were chosen merely by r andem cut of a greu}J ef one

hundred or more given. In the reading of the data it must be

t aken into ccnsideratien that the weekly pay to. empleyees was

not cemputed on a yearly basis a s was the executive's sa l a ry.

There would be greater discrepancy in them if they were for

there is no. assurance of a f ifty-two. work week fer the empleyees.

47.

Company

Allis Cha.lmers Allied Chemi'cal & Dye Borden lililk Co. Anaconda Copper American Tobacco Coca Cola S .. S. Kresge Sears Roebuck Public Service (N. J • ) Eastman Kodak Esquire l40ntggmery Ward U.S. Rubber U.S . Steel F • VI. Woolworth Wm. Wrigley Stanc!<.u·d Oil

Executive Year Sal ar,-

Otto Falk $50,050 H. F. Atherton 125,000 T.G. Montague 60,000 -C . F' __ Kelly 168 ,970 a.w. Hill 331,348 R. w. Woodruff 16),050 R. R. Williams 89,250 Robert Wood 120 , 000 T IO N. McCarter 120:,000 F lOW. Lovejoy .a..15,,419 D.A Q Smart. 25,000 S.L. Avery 100,450 F.B. Davis 150,260 W. A. Irvin 1M>, 070 C . ~, . Deyoo 174 ,)46 P.X. Wrigley .35,060 Vi .. !. Hol1i<la.y 81,OOO

Weekly Pay to Employees

$30.92 30.81 24.57 27.03 16.05 33.15 17.86 29.75 33.47 27.03 37.66 21.28 27.00 28 •. 07 17.86 17.27 26 34.39

48.

26. ----- "Salaries and Wages", New Republic, 1939, 101:280-2.

The attractiveness of a profession, trade, or job may in some

instances be influenced by the remuneration received. Sometimes

people enter professional positions h view of the possibility of

earning large sal aries. A concrete example of this is noted in

the large number who seek floodll ght appearance i n Hollywood .

The prestige whieh is accorded t he doctor, l awyer, teacher, police-

man or fireman, on the other hand ha s an appeal which draws many

into these ranks without regard to compensation.. The respect,

mderate ro utine, plea sure of intellectual life, or contribution

to society makes it attractive, even with pay less than that of

competing occupations. Man is grega rious a nd desi res association

and outside contac~. F..mployers have found that a job is pre­

ferred if it brings t he emp~oyee into a ssociation with people.

The type of work may be attractive i ndependent of the wage

paid.27

27. Louis H. Haney, Value and Di stributi.on, 528.

While the wages may be determined to some extent on the basis

of attractivenss the rever:!e is sometimes true~ A specific exam.ple

of this is to be found in domestic work which in the past tew years

ha s become inc-reasingly unpopular.. fiomen object to it as something

interior to employment in a f actory, of fice or department store.

The long and irregular hours of housework have sca red away one

group, confinement to a place which is workshop a s well as home

has proved dista steful to others. Added to these is the social

odium of a menial position which differentiates sha rply between

master and servant. In the business world where service is

treated objectively this distinction is not so t3pparent. There

exists an impersonal viewpoint and to some dextent a degree ot

equalization not generally accoTded servants in a private home.

The stigma society places 0n a ma1q, the nec-essity for her t aking I

orders, s'egre~ation at mea.l time and after working hours a re

objected to by many ... ho would otherwise engage in this work .

The modern world ot democracy objects to such soeial distinctions.

1*-9.

There is t he ever present demand for equal rights in spite

of tbe ever present. distinctions in abilities and capacities.

Wa.ges tend to run high in domestic work due to this idea of

social leveling.28

28. Helen Campbell, Women Wage Earn§t"s, 240-2.5-1.

I nfluence of Pressure Groups

Union influence on wages ha s caused them t o advance to an

upward trend. Concent,r ated pressure.s by particular l(e1' groups

can alter the wllge t:nd R8.1ar y relationships, which, in the absence

50.

of Guch organized pressures, would be the outcome of each individual

bargain. The mon provides ast:.abilizing agency for skilled and

unskilled in the way of doing away with individual competition or

l ack of strength in bargaining power •.

"In 80 far a s union policy a ims to establish rates 1n accord with what individuals, a ided by adequate market informat i on and by ba rgain­ing skill, would obtain for their services, in view of a lternatl ves open to them in re-latedemployments, such uni,on policy strength-

ens the tendency of the market to adjust com­pensation to the skill, responsibility, and application of workers in the several positions . tt29

29. J . W,. Riegel, Wage Oetennination, 3'9.

An element ot monopoly exists in the labor union. It attem~ s

t.o obtain the full competitive rate of wages for its members .

The closed union which practically controls the entire l abor

force i n given trades can control wages by limiting the number

of apprentices ill its fold. By limiting t.he l abor supply in a

trade 1t 1s in a pcsition to inc1"cllse wage demands besides making

additional requests.

Of no small importance in determining wage and sala ry levels

aret."le three parties involved-... employer, employee and the general

public. Each ha s his particular part to play. It is not only a

matter of employer 8lld emplo;r~ee bargaining together for the ri ght

wage, but public opinion wtth its ontarions must be reckoned with.

Public opinion may determine whether the wage is sati sfactory by

refusing to purchase the gooe s er services. This >is bro'ught about

by the fact t hat if the goods or services are out of the buying

reach of the vast ma.jority, due to an excessi va r ate of wage or

salary pa.,ment, the public will be unable to purchase them.

Hence, the emplever in order to remain in business i s forced to

cut the pay envelope ot his tlfnployee.s. The employee has his

role of part i cl.pZltlon because unless he receives a sat.1.sfactory

wa.ge he cannot. continue his work f1"0111 the physical standpoint, I

nor can he share in the consumption of goods produced. Public

opinion, in its conception of what i ,8 a matter of justice to

the worker a s regards his standard of living, will also be an

51.

element to force remuneration to different levels. Monsignor

John A. Ryan of Catholic University in Washington, D.C. has

lectured this point ·of view in his classroom.

It is not unusual to find public opinion agitating in its

own behalf. Many of our humanitarian movements have been stim-

ulated to action by the a rousing of the public to conditions

that "Were in need of change. lluch of the present day social

legislation in beha l f of labor has been passed beca.use of the

interest of the general public in the socia l and eeonomic wel-

fare of society. Int.olerable working conditions , su.ch a s long

hours, poor pay, lack of proper sanitation and the like have met

with public disapproval; and, a s a re1JUlt, legislation has been

obtained to permit for a grea.ter participation in the more de-

sirable things of t his life.

The Holy Father .1n his encyclical Quadragesimo Anno speaks

of this matter.

liThe condition of any particula r business and of its owner must a.lso come into question in settling the scale of wa ges; for it is unjust to demand wages so high that an employer cannot pa.y them without ruin, and without conseguentd.istress a.mongst t he working people themsel '\Tea ••••

Let employers, therefore, <Ul.d employed join in their plans and efforts to overcome all difficulties and ~obstacles, and let them be aided in this wholesome endeavo, by thelnse measures (}f the public authority. In the

last extreme, eOlUlflel must. be taken whether

52.

the bus1Ms8 can continue, or whet-hel" some otber pl'OVitdonehould be made tOT't.ho work­ers. 'l'h~ g\dd1.ng s-p.t11.t in this crucial decision ahould he. OQQ ot .mnt.ual underatand­i.ng and Chrl:stian h~n1' between emplo,,.ers and t ,he _oMeH.

Finally the wag$seale mlu~t, be~gulat.:d ,d,th a Yiew to the eeonome 'Welfare of the whole people. ~e have ureruiy shown how conducive it. lltw the eo.mmon ,Qed, that wage eamera of ill lUnda oe enabled by econom17J.ng that ponion ot their wages wbich remains after ~eBIm17 e.xpensee, have been met , to' attain to tnc pollI,esston or a o-ertM.t1 modest 'tor­tWl.~ • • • • T'O lOQr or ra18'8 '&ages 'unciul.'i with Ii. Yie\t to pnvat.& profit, and ldt.h no co.B­ald@ratlon tOct tohe ~niOOd, 1s ,eontrary to soc;1al juntoe which de.ande t~hat. by' tltttOCi 01 et tort. and good will 8QQh a acal.. of wages be sot up, it po.tuJlble. a.ato otter to the gel1teat ' numberopport.W'dt.l~s of _plo)'ment and or . seeuring'_tof' theiJllsel.ves suitable _ane ot II vel1hood. n 30

)0, Pope nus n,Qya4rage&\m ~ 24-.25.

Social pres8:~ has done eOMt.bing to cont.rol W'dg e& and

ssl.ariea. The doct.li.ne that evfRY pe:r~n MS a right to t.he

goods ot the earth i8 be1r~ p'rMched more ann more. Th!'a -

ean be aubetMtia~ed 1n the great. llUtlbero! ,advocat.rs for

a "Uving 'ilJ~g." , "family wage fl , ar.d "just wage!f. That workttrs

have a right. to a living .age i.8 ba1ied on theee three raetore

n .... . flrat ,God tlade th., e--~ for all burtUm beings; second that aen must get tneir livelihood from the

,,-

earth by labor; a.nd , third, that it 1s po.ssible tor a part o.t the people ot any country to get possession o.t t"heearth,-lt 10110*& that the laborer has a right against the mast.ers of the earth to a decent livelihood.ft.)l

31. John A. Ryan. Social Reconstruction. 67.·

Justice i8 the cry t.hat brings about 50me measure ot control.

The philosophy that a man who woTk& consc-ientiously has a. right

to receive at least enough to support. him and his tanl1y ha s

been proclaimed vehemently. In this reasoning the family wage

haa been brought betore '\ihe public. .Leo XIII was the authority

to dwell at length on this idea in his encyclical Rerum Novarun •

. tI •••• nevertheless, there 18 a dict.ate of nature more imperious and more andent than bargain be­t.een man and man, that the remunerati.on must be enough to support t he wage earner in reasonable and trugalcomtort. ,,)2 .

32. Pope Leo XIII . Rerum Iiovarum, 25.

And furt.her on he says:

"If a WOrkman1 8 wage lbe sutticient to enable him to mntain ·bims+l.f, hie __ ite. and his children in rea80nab~eco~ort. he 11111 no,t tind it difficult, it he Is a sensible raan, to study economy; and he will not tall. by, cutting down ex~nse8, to put. bY' it lit.tle . propert.y: nature and reason wc;ml.d urge him ~o do this ••••• It working peoplecan .be en­couraged to look f'onard toobta,in1ng a .share in tbe land, the reault will be that t.he guit

54~

0'

betlleenva stwealth and deep poverty will be bridged over, and the tJio orders will be brought nearer tcge~her. It 33

33. Ibid., 26.

The living wage ooetrine a:a set forth by Leo un has caused l'

eomee111ployere to t'amulate wage payments In bai-mony with it" or

particular mention 1s the .Partnership Plam WOrkTd out by ltyan and

Callahan for the Louisville Varnish Company ot Louisville, Ken-

tuck.,._ , .

"First-A Living flage to everyone; our stand­ard being that there should be ample for him and bis family to liVe in what we term the "American FalSbion" so that. be can afford to live in a maDner creditable to the company and the co_unity.

Second-6% interest, 1irl.eh ean also be termed a Liung Wage, 1. paid for all the mone)'" in­ve,JJted., but as th~ L1Y.1ng Wage has gone up . about 100% it 1tOuld not be untalr at the pres­ent time to collect n or S% on the capital in­vested.

Third-All profits, a ft.er the above mentioned wage. and interest have been paid, a re to be divided fifty-fitty. The first half between all the employees wbo make these profits ard 1n the ° ratio of the wages receiv~dJ .hile~e other half will go to the stock holders. tt

34. P. ll . Cal;J.a,han, "The Dignity of Fart.nereMplt: (An add~aa to thelst-lonal ConterclCe of C-at.hollc· Cba rltie-s), -7.

55.

Colonel Callahan in an interview given to James Langdon,

who b-"ld come to see him about how he had come to put the papal.

encyc.lica1 plan into effect wa s told -by' Callahan that the num­

ber of industrialists who bl.d adcpteg the plan was considerable

and he went on to say:

"No doubt you're wondering why more industrial­ists dcm't adopt this plan. Well, fift y-six firms that I know ot have done so. The last one who wrote a ski,ngme about it and then put i t into· operation in three newspapers turned out to be the daughter of Mark Hanna, the first man who gave me a job.

But during t he boom year., t he unions were getting doub1.e wages and reaching out for more. They lost interest in being partners and taking sane of the risks; they wanted the tat ' pay eovelope. And they stopped asking me to tell them about the Partnership Plan.

Industrialists a re afraid ot the plan. They're afraid of the apparent cuts in their own profits. They don't realize that they get back, in loyalty, interest, active concern about the business, in­iti ati ve, and actual work, what they couldn't buy with any aJOOunt of money in the world. J(y men own the bu~iness along wi th me. They don't work for me; they work with me. So the Cal-lahan Partnership Plan has worked; it's wolked in good times ; it's worked in bad times.. It t S

a long the lines of what th e Pope has been ask-ing for. I like to t~~nk it's Catholic. I know it's a success."

35. James Langdon, "Colonel Callahan Splits Profits With His Workers", Queen' s ~, 1936, 29:13.

A concern ot importance that has adopted a wage stabilization

56.

plan is the flonnel Meat Packing Company of Austin, Minneso-ta.

In a -;: r eport to the Social Action Conference held in Mil waukee

in 1938 Reverend J .M. Hayes r emar ked:

"This 15 a large plant, employing 4,000 men, ot whom nea rly 3,000 a re involved in the plan I spep..k of • (Christian ethical principles) Under this plan employment has been stabilized, wages raised" speed-up avoided,. seniority rights protected, vacations with pay pro1tlded, bonuses paid, democracy in ma:nagement cultiva­ted. There are other features to the plan. Work is budgeted over the yea'r with the idea of employing men steadily. The;nen rt'lCeive a weekly salary instead 'Of hourly rates. , .. 'hile llr. Ho nnel claims greater effic:iency under his plan, it seems that he adopted it with highly Christian motives, with a deep sense of his responsibility to the me.n in his employ. He speaks, for instance, with real satistaction ot the increase in marriages and h0l!9 ownership since the plan has been operating.":»

36. Rev. J.M. Hayes, "Catholic Principles and the Meat Packing Industry", Proceedings First National Catholic Social Action Conference, May 1-4, 1938, 253. . -

R •. i. Deupree of Procter and Gamble in an informal t alk before

a group at New York City made t hi 's statement:

"Ur. Procter has a real belief that a man is entitled to a II ving wage, and the policy of this plant is that we can pay an average ' plus wage tor the type of: lIOrk which we require in a given community.

He is a 1000 per cent believer in th e tact that a man Ebould have an opportunity o!building­I might call it an estate, but I have another

57.

word here tor it--an independence--an old age independence, some that he accumulates in his own name. Under the plan of the company, a man who has started to work at an age between twenty and thirty, and. 1IO.rk­ed until he is sixty, no matter how low in sala ry or high in sala ry or wage should be able to retire at sixty absolutely indepen­d.E;nt of anybody or anything, and with . an incane . egual to his' then }resent earning power.,,3?

37. R. Dickinson, Wages and Wealth, 45-46.

From the instances cited some employers on the basis of social

morality have raised .salary levels realizing that an obligation

of social justice belongs to those wloom they employ.

The family wage plan ha s been worked out in Europe in a

comparatively satisfaetory manner. Sweden,Gennany, Belgium,

France', and Italy have at one time or another inaugurated the

plan. Paul H. Douglas in his chapter "Family Allowances in

Germany" makes this statement a s to t he extent of its aooption:

flBy 1923 the system had so established itsel! that family allowances were not only paid by the government to all its eligible employees and officials, including those on the state r ailways, but were almost universally the custom in the mining, metal, chemical, textile, pulp, paper and cellulose industries a s well. It had permeated approximately half of each of the following industries: s t,one, clay and glass, printing, colmterce, transportation (other than r ailroads), sugar, dairying, slaughtering and baking. On the other hand, it has scarcely

58.

found a foothold in the clotbing, shoe maJdn;.h leather, bullding, TIood-lI'orking" bremng, milling-, and tobacco t.rades."38

38. Paul H., Do~glas, Wages!ru:! ~ FamUl, 111.

In France the family allow~ee plan ha s been functioning

tor govemmentcl. employees, rail:w-ay , mining, manufacturing and

commercial establishments.

"The dirot.or ot the, Comittee on Fardly Allow­anef)S,. U. Bonvoi sin, e;st1mated in the summer of 1922, alt.er an investigation" t hat the yearly amau.""its paid out in family allowances b7 all those S.ndu'St,de~ 'Which did oot partlci­pat..e in t.he el-aaring tmds It&S at tbe least 180.,000,000 trancs, and that the nwnber ot workmen employed by these -companies was ap­proximately 500,0CX>.

Adding the number inolud(rd in those industries and in government service where no clearing lunds exist., it seems probable thnt nearl,. 3,000,000 workers, {)t" over one-third of all the wage-eamers and snl arled workers, out­deteot agriculture and domestiesel"Yiee, in France, are working und.,r some r orm ot the tamtl,. allo.anoe syst.em, and t.hat over 750,000,000 tranc& are being paid out annually i n r amil:; allowance .• ·tt 39

:39. .ill!!., 53-56.

Dougla:s has been an a dvocat0 rof a .family wage here in the

United states. A8 to the sucoess or it little can be determined

59.

tor it has not been adopted on a sufficiently l arge scale to

draw any conclusion. The family allowance plan comes out ot

a compensation to which all the employers in a given region

or industry contribute in proportion to the number ot th eir

employees, the amount of their total wages, or the number ot

man hours worked in their establishment. For example it $20

is the ba sic wage, all employees are paid the set amount but

in addition to that they receive an extra allowance with regard

to the number ot dependent children they have. If he has three

children he receives in a ddition to the $20 a $6 allowance tor

his mte and $.3 tor each ot his children. His total weekly pay

would be $.35. The $20 basic wage would be paid him out of the

tactoryl s treasur.s t.he &15 in family allowance would come to him

from the industry's equalization fund. While every additional

child born to any employee ultimately increases the amount that

must be paid into the fund by every employer, the amount in the

individual case is so small that it produces only a slight measure

of reluctance in hiring married men. The basic wage, the level

upon which the allowance starts should be adequate to the decent )

maintenance of a husband and wife. ' 'That the plan ha s been put I

into operation here and abroad is sufficient eYl,4~n~e that this

tamily wage scale ha s penneated industry to some degree.

60.

Geographic Factors

To some extent it. haa been a common custom to establish

a wage scale according to rates .paid by ct her firms in the

vicinity r a ther than through any logical process of rea soning.

It is prebable that if there has been a free play of natural

forces the prevailing rates will have automatically sifted and

adjusted the vurious factors influencing the value pf the work

until an equit.able r ate has been established which is acceptable

both to the employer md the employee. It has been concluded

by Riegel in his geographical eU.rvey of wages and salarie 5 that

a single wage scale co uld be used a s a standard wage r ate in

the va rious occ upations. 40

40.J .w. Riegel, Salary Detennination,. 43.

Geographic immobility in wage and sala ry determination is a

potent factor. People tind it hard to move from on e place to

another due to family ties,. sentimental attachment to surrounding

area, congeniality of friends, home ownership, education of child-

ren, and well e·stablished system of livin,g in the given locality. I

As a result of these conditions when employment in a particular

region is at a low ebb it is difficult to shift the population of

that area to the place where they may be absorbed in em.ployment.

61.

People a re reluctant to move even though a more attractive

wage be offered in another region. Employers frequently take

advantage of this dislike for movement in their payment of em-

plyees.

The comparatively low annual incane for the Southern popu-

lation is influenced by and large by the predominance of f a nn

population. Here it may be remarked that there is also a dif-

ference in cost of living from that prevalent in other sections

of the Union. EstiInates range from $18 to $23 weekly in the

South and Fa st respectively. Income statistics of va rious sec-

tiona of the country are quoted trom America I S Capacity 12 Oon-

~:

"In 1929 an estimate of per capita personal income for the entire population in the South Atlantic states wa s put at $466 per annum as compared to $907 tor New England, $476 for the West South Central states" ~ll07 f or the Mid­dle Atlantic states, $562 for the West North Central4itates and $999 for t he Pacific dis .... trict."

41. M. Leven, A. G. Moulton, c. \'iarburton, America's Capacity ~ Consume" 173.

It is Ii matter of common knowledge that Southern f ar.uing is

not a prosperou,s enterprise. There is llttlediversifieation of

industry as compared to that of the North. Consequently the low

wage paid in agriculture sets the "transfer wagetl for t hose who

62.

'Would enter industry. It is ea sily understood that wage r ates

in industry just a bit above those paid in agriculture will

draw workers to industry.42

42. Carrie Glasser, Wage Ditferentials, 154.

said:

Howard Odum s ummarized the Southern situation well when he

"The Southea st is rich in all resources, physical. and human, essential to the development of the highe$'t culture. It does not, mwever, afford adequate facillties--Bcience invention, manage­ment, or organization and technology-tor the developnent and utilization ot ei. ther its physi­cal or huma n wealth. Moreover, there is a l a rge and unnecessar y measure of waste, a ctual a nd potential, ot both natural and h~ resources. In reall.ty, therefore, the s outhernc regions are deficiency areas in contrast to their abundance gf potentlalities. II43

43. H. W. Odum, Southern Regions of ~ U.S., 15 •

.In a study made by the National Industrial ,Conference Board

under the direction of L A. Beney a variation in ear nings was

noted in the vt!.riot:s ma jor geographic regions of tJ; F' United States.

Int.he majorlty of cases the higher wages were being paid in the

Fa r l'lest and lower wages in the South. This wa s true for identical

industries and the same occupation. In the case of machine shops

63.

64.

and foundries the hourly earnings or male workers in the South

averaged 64 cents as compared to 7ll .5 cents in the East, 75 cents

in the Middle West and 75.2 cents in the Far West. In the tumi-

ture industry a greater discre.pancy was found in that in the South

hourly earnings averaged 42.2 'cents am in the Far West 63.7 cents.

The lumber industry also gave wi. t ness to great:. va riation. In the

South, hourly earnings averaged 32.'7 cents in the Far West, 74.9

cents. In the production of electrici'W, hourly earnings varied

from 64.3 cmts in the South to 89.3 cents in the FA.st. The pro-

duction a nd distribution of gas likewi se showed vari ations f .rom

50.6 cents in the South to 73.8 cents in the F..ast . In general

it has been found th at earnings in the South are definitely lower

than til ose .in t he East or Far Weet. 44

44. M. A .. Beney, Differentials!!! Industrial Wages and ~ In In! United St ates, 14 ... 18. .

It might be mentioned that the population composition in the

South with its large number of Negro workers is a oondition that

influences wage and salary levels in that !'Ieg-ion, rut it is one

that would carry us f a r a!ield of this study as it links itself

with prejudice, anti.pathy, and racial diserlmina,tion. This is

not orily applicable to' the Negro worker, but to the Chinese and

Japanese worker along the Western coast. The Indian wort<:ers are

in this same category. -

Transitory Nature of Institutions and Social Legislation

Wage a nd salary incomes must be recognized as an a spect of

institutional forces. The established: way or doing things, busi-

ness procedure, property and contract methods, all the social

customs of modern times have their innu~mce on them. All of

these are man-made and developed, thereto.re, subJect to change

and revsion. They d id not spring up f rom a n unknown horizon

and begin fuetioning. Social g rowth a nd deveJ.opment, a s well

as decline and decay, 113 m.aniIest in rom 's earnings. C. H.

Cooley ha s insisted t hat ownershipd and distribution a re:

" •••• essen.tially an historical and institu­tional phenomenon, economic technique being for the most part only a mechanism t h I'Q ugh which social. organization expresses itself • ••• • pecuni ary valuation is a social insti­tution no less than the .state or the ehurch. n45

45. C.H. Cooley, Social PrO"CeS2 , 302-308.

Eleonomic habits and routim s are then a part 'Of th e socia l organi-

zation and do not remain unchangeable. Part.icula~y t rue is this

of public a dmini stration work.

Governments because they are sovereign may set "':S.3~ and

salary r ates with little J!!egard to prevailing market p:-ice.

What a soldier must fight for, on what terms a supreme court judge,

65.

a polieeman, or a mail carrier shall assume duties is part,ly

answered with disregard to competitive principles. ~lages may

l,oweredor raised because of a new political party-caning to

power or because ideals of ri ght and Vlroflg force those in pub­

lic office to make such a change . All is not explainable on

the grounds of economic pressure.

No institution iit agnates since its existence throughout

long periods of time inevitably necessitates constant change.

Hfibit a nd custom opera.te a s i nfluences in wage and salary fixing.

An examination of pa.yment.s made in various loealities shows a

difference for exactly the same type of wo rk . The customs of

one locality 8.S well as the tradition! often keep sal aries high­

er or lower than those of a neighbori ng locality. In this re­

gard may be mentioned th e employers "ho underpay employees in

sweated industries decl aring that they c an not possibly increase

t heir custOll".ary stand~rd. The mininwm wa.ge l avi in the form of

the Fair Labor St andar ds Act defied custom and yet did ootruin

the attected business enterprise.46 Yinimum wage laws have forced

46. L. D-. Edie, .212- ill., 382-383.

wages to higher levels. In other wor~de governme~ legi $l ation

may also play its part in this question. .Low wages in sweated

66.

industry hus been raised where m1.nimum wage l aws have been en-

foreed. It is noteworthy, too, that minimum wages have not be-

come maximum wages, and that productivity -of 1:.t'1e e.mployees has

not been l essened because of an a s surance of a definite minimum

wage.

Statu'S of Women Gai nfully Employed

Sex undoubt.edly carries lIitb it discrimination in oo st types

of work. Custom, the law or many cEl'lturfues , has est ('!.blished the

idea that womm are naturally supported by either husband, par-

ents, or relatives and consequent.ly not it'\. ·:lead or a pay en-

velope equal to that of lI13n. It is tInle that t.o some degree women

in the work-a.-day world a re often times in the teen age group and

use the. time spent in work a s a fill in gap till marriage t akes

place. There is a common saying that teaching is just a stepping

s tone tc matrimony. Sometimes \'tomen are second wage ea rners in a

f amily and t herefore employers feel they shoUld not be paid on an

equal basis a.s the chief a nd only supporter. It must be r emEm-

herli!d that there a re a number of women who a re absolutely depen-

dent on their own -ea rnings tor livelihood or have dependents to

support. In ten studies made by the Women's Bureau incl u.ding

369,000 women it was dicovered that 13% had to work because they

67.

f

were the sale support or tamilies or two or lIK)re persons.

In thirty-four studies involving more than 155,000 women

both single and married, it '\'la s reported that, 6CJ!, contributed

to the support of depend.ents.47

47. U.K. Anderson, ItEqual Pay" for Women in War Industries", Bul. 196 , 1942, 14.

Granted th e choice of occupation for 'lOm.en is limited by

certain physical disabilities, pre,judice against women is still

prevalent in -industry for they are limited to the type of oc-

cupation that they may fDter. It is ci1iefly in the unskilled

and semi-skilled industrieos that women must seek employment.

A sta tement issued i n a bulletin printed by the Women t s Bureau

in 1942 verifies thls rEfllark.

"On th e other hand, there s till are employers in all partso! the country ·who frankly say they Ydll not hire vomen 80 long a s they can get men. In New York, tor example, of 1,400 employers Nporting in April nearly four­fifths did not plan to include any women in their new labor force before the f all of 1942-apparently not until men were no ~onger avail­able. In the spring also, a United Stat(~s Elnployment Serviee study indica.ted that employ­.ers were opening new ..lobe to lrO!llen very slowly inrview ot the extent of la-bel" demand. and the stringency in skilled a nd s·emi-skilled ;;.ccupa­tions. n4l:S

48. M.K. Anderson, "Your Questions As '1'0 Women In Wa r Industries", Bu!. 194, 1942, 6.

68.

Women are more likely than mED to be the victims of ex-

ploitation because of their lack of streng labor organizations

and collective bargaining. Because of ' this lack of solidr .. rity

wage r atee <L~ _depend~nt to a l arge f)xtent on labor poliey or -. _L " ___ ..... _ . ---"" _~ ..

on the consciene-e of t, he e~")loyer. ThoUgh this study is not

to consider 'fJalle S andsalarie$ in the presel'1t war crlsis, the

following statement is submitted to give testim.ony th~t dis-

crimination in payment 15 still preva lent i n 1943.

"In nea.rly all the plants makingsm&l1-arms artil1e~' ammunition that have been visited by t he Women ' $ Bureau, entrance ,r ates for men were found to beat leRet. 10 cents high:­er than those for wo:nen , though m&"ly of the jobs done were similar for t h e tv:·o sexes . On th e ot her hand, in the aircraft industry, which is newly putting 00 W0m.20 , una in which many plButs have opened only r ecently, entrance r ates ar-e the same for men and wQIJlen in the great ma jority of cases) and the rate of in­crea se in t.he first monthe is the same for both. 1he job a nd th e wo~k done, r ather than the sex of t.t, e worker , is the standard for r at "9 tixing a s advocat.ed by t,.h~ V:1nr Production Boa.rei , t he- Amy J the Navy, a nd the Def8rt.metrt. of Labor.

Vlhoen women a re put on wor.re that men have been doing and are :paid a lower entrance r at.e, this amounts t o a wage cut. Nor c an a decline in Ol..1tput be used. a s an excuse for t his cut in the rateJa.s women' soutptlteor::tpare~ lO'e11 wi t.h thato! men and in some cases exceeds it. This i ,$ found now in aircraft, for example, and it 'Was the case in oome of the metal and electri­ca l plants in World Vial' I •

. In another industry equally new at lea st so far as woman-employment is conccerned, gun manu.fac-

69.

ture, a lower beginning r ate is pa.id to lIOmell t:han to mEn, and a sex differential is main­tained even f or experiene~d workers. The Wom­en' s Bureau has found beginning r ates in va r i ous plants ranging from 60 to 74, . 6 cent.s and hour for men, but only f ro m. 43,.4 to 45 'Cents tor wom­en. On ea ch Q.f five types of machines Oll which experiE'.tlced women and men wurked, the low-est l:'i? te for men alwa.ys VIas at least 10 oents above the women's highest. In the Bat.ne indUstry this was true also for several types of inspeotion. '149

49. ~, 7-8 .

A. simila.r report on the average earnings for ooaen i n silk and

rayon mil ls show a 2,"", to 4eJ$ s1lllll 1er ea.rning fo!' women . In

about one-half of the industries t h e woo,en were paid less than - 0

$15 a week.'

;0. b.'lbor fill ~, 66 .

Society has built up prejudice against a ll etnployed women to

$Ollie degree. There is definitely in ttl e minds ot many people a

f eeling of disreput e for married W<Jnefi who work . It is only with-

in recent years that any amount. of success has been a Chieved in

breaking down this barrier. All employed women ba ttle against

the centlU7 'old, prejudice against th em. VeJ!7 slowlY' a nd gradually

this social stigma is being broken dOl'ln for women nre coming bet-

tel' equipped for thE-ir work and are doing the job a s well a s men

70.

in mmtberlestl ea ses. !ten in the professions and in th~ trad.es

3l"e often times j@alous or' the- 1ntI'tlfJioo of ~ into their

field of we·ric.

Some pttlfessioflal groups have re~trict..ed th eentrance or

71 ..

women .into tibEtir dowdn, In others the ~ber'shi.p is so l a rge.ly

masculine th&t it funct.!ons a s a m.A.'lt:l organizat.ion. 'Under the

pr e.sent war situation women a r e being- a dmitted into fields where

before the sbonage of m~Hlpow.l' t.hey 1fo~d not have ooen ~lera:ted.

'l'be root. or aU 5pecnl~~tlon In th1.s ~t.te-r s:ep_~s to be t r,.e z:,aS$l.I!IlP­

tlon t hnt some basic, L"1bo.r n, fl1en~&l dirrel"flnOeS exbts betlteen

tone Se.x~8. .At one timE! it- was ~Msidered that l}.1rl~ had no o.MUty

for ;my ca r eer beyond that of" housetd.!e.. Then l1Om~ begtitl to en­

ter coll~gG$ and soon re~Jo&l.od a e <l.paeity for scholtlrship equal

to that ert men. At t.ha.t tx>int 1'0 sethe ory that th ·ey- were apply­

ing th~tDe1v~$ go..or e d:l1ig.mtly to th (joj.-r l osS("..nt3 than. the ,op-po,s-i te

aex 'fIbQ~ posU#lon 1n acad..emic learni.ng was ru.:r"f!'adys-eCl.'lre. The

explanaUon n (\.Q to be di~""rdedj t",oo~ tor rerni.~ seholllstie

a-ehl:ev~.ents col1t..inue t o be maint aineti even lthen '1ifC!'!le-tl were rec­

Ognl.'IeC. aa properly bel,()nging in collego and partICi pated (is

t tl1l7 as !tI~ in ext.ra curri cular aet.lv:t.tlGs.

lfherevqr t,e,etea 'Womer'l on. tnt! averag8 E!t1ual t.}:Kfir male col­

league.s in 1.nteUigellc6 as !'flown i n psychological sxamtnat1ons-.

72.

There is at present 00 evidence that men tmd l$an~ndir.ter

8igniflea.ntl.,;r in special capaci:ties ot" in getltWu mental.

abilitles.51 It is 'true U1U:t only ~}. te'Vr wunwn have att~ined

--------~------"-~--------~------~~--~~----------~--~~---------------

51. 11 . U. Allport. flSee1cg 'W~ As They Ar.eJ•• "1' -- r-~ --"..!,,~---

192'9, 158:.401.

tho ronk of ~Gnit1s.., 1his in ~ome me!~'1}1l1'~ du~ to the hei,l.vy lnflu-

enc~cf f!llrJly 8.nd aceisl p.T'eSEUl"e .m1 thle f 4!H! 't tt-.. "1t we tend to

prdse orla;tflP,J.it y in hoys. 011'1$ 1.! 1.,,(! not encourage<! to be- bold

elld Indep<mdent, but to be 8wt"et. , gentle, can!orn!ing, A'r.d ~ttem­

inate.. Their t.raining 'consists in dolnt; things bes u,f"U'tU-ly and

tast.etully so a s to brl.ng p.bout. tel" t~~clve!3 seel.al ~dvanta.~ .

80ys a re given. lll'\Or~ tr·~edG!i am! lic'eM€: in th-cir ~ l"$ut.Pj. l"f-'Ar-

lngthfln girle. There 1s no ac~ept.W1ae ( f. ! womefi 3 s intellectual

equal.e; and, generally spemdng, mm a. rt:! not. 00 interested in

talking with ttOlP.m a s '4fith 1!tEfl on intellectual to!d£Js.

Women E1re a eeigeed to $ubor,U.na~ and less life~l. paid ¥fOrk.,

Evett ineuo:h a. ti-eld ~$ t~ebin.~, the Hxeat;1tilve positions are

llstmlly filled by ~n althQup.h 8. large numb~r of t~eherg a.re

'WOmcen. In th e fi 'eld of medlc:ine a tld its allied field llu.rsin,fh

t.he mm predom1tmt..e in the formar 'lil ile woootl fill th e posit.ion

in the su.t.iordtnate lror:l( . it. P!"OfU80l"S in unlv~;r$lt!es as 'Well

a s in other vocati,otls are a ccorded .'.llON pre&tig~ and author-

ity thllrl are women. This 18 true even t'houghthi!i.l" .formal

tm.n~ng 1s the s.a.me and t.tl ere 1s .no marked degree of differ­

ence in their abil1ties. Wo.men pro!esaors fire sel.domp.'lid on

&, ~'t'" wtt-h reale professors. 52 Hutchinson states:

~--~------~----~~----~--.. ------------------.-.. ----~~~--~~----------52. EHJ. Hutchinson, "!he Economc ?roblen"S of il'ome,nfl ~ Annals

!! Amer-iean Aoade!11 1929" .143~1.J3.

"It. is oo-t \li'.lu5ual to have the appointment. of -wontan tiC high salaned positions opposed on the g rotmd that th e S'"alary mould go to a man, it. bldng t ao mgt! .fbl" ~ wmm . Th~re JrUnS through t.he field of t$ployment the .nt.t.itude t hzlt. men h~ve the a et.mU. as .eD. as the llilgal economic r.esponsi­bilities of tb e horae upon their shoulders, ~nd t n.Clt th ey ha\l~ , theretoree, a v~$t.sd right in high­er wa~1 0 8 than wooen aM a J~sted interest in ·ff·J'~ 't7 1m10l'l1.<l tl 1. &n Y' a· i ge • 11

~-..... ~""'"~---~---. -~. ~.-"".---.q;-----

5'.. Ivj.d: .. ~ 133.

In short, It ma,. be add that the, g.en.eral a s.swnptlon that. 'ltom-

an t S voeatl.on 1 s hoost!keeping and hcme-m:lk1ng strcw..gly inn uenees

their n:a1nf'ul employmen,t.. The publicity tha t 1s given to the: probl-

16m or ItQ1Jrriage: and ot\r e$r"t ~.Jld troIt &lothftlr aspect "=arrlageor

career'! is eTldence oft-he interest that soc.i$ty is t~ing in the

matt·erof ~m-en' II e.--npJ..oym;ent . Heated campaigns hevfJ taken p18,ce

in order t.o change th e law that., au~tictul:r ousted lIiOmm from

public school teach1.ng on the basis ot being u married womall.

73,.

A com!'.on current philo sophy believes that the r e ls much danger

in permittl11gwom.en to enter industry and become e con0.m5.ca.lly

independent. Ther~ exists a fear in the mindsot many that the

future homes will be di:srupted for w mctl. will fall in their r&­

sponsihilities of being m.others and homemakers ..

74.

CONCLUSION

10 the degr" that eoe1al. in.stitutiona, custcms., habits,

and traditions a re cbrulgeable a.nd llilPdifiabl~ so their relation­

shi,p tc .age and aa.l ary IGvel$ has been important.. To the ex­

tent that. people a Nt stratifieci socially and .occupaticmal17

75.

.1th t.he l'~sult that a changiZ !ro.":l.on'e group t o a nother is cUf­

t1cult " so • .ill there be a variation in par on the different

leve:ls. l;h~n an 0c;et\~tion Gl" a prof ~$$lon .ucquires ~}rf.t;stige in

the minds of the people, it would ~eem tha t th~ pay is correspond­

ingly itlcrfI.8,sed~ ;,t;t'1ldy· of t.hesoru.ol pyramid hrIng.s forth t.he

.ta<:t. th&t t he 'I1orkers a re eli;\ srsifled according to intelligEnce re­

quired ror the job tobq perf o'l"med . ThQ&o at the DaS'13 of the

soci al Pll"afldd ~re t he ~$t poorly p.a:id , enjoy the least prestige.

1>. nO have the lelist part,1(t:i .. pntion in controlling ,PO'lMer in soci.ety.

The u nual oeeupations in a ef,/ne~a1 Malleit! l'u""e heen less prt v­

ilegad and less estemed and a re appa:rently paid on 0 lmter level

than t he pl"'Or~}8sions or skilled t r.a.dfts .

It tend-:s to bo true that as we proceed fl'. the less intel­

le\:.tual t.o the mm-e int.elleettlal occupations the average llmOunt

or income rl.8Ml. Education in its tonml a 8pect bns a pr ellU ge

bearing elem.ent in addition to belng 'f,\ f acter i n ~e 8n d s~la!y

fuing . 'l'he t'lO~ of an investment put int.o tftem':tstcr:; .or 8, pro-

76.

fess10n or occupation. \'1he:ther in t.ime,nJ>nal:1 0'1" eff ort the

greater will be tb.e remmerat i ve vnlue of the position.. Know­

ledgt£, precision" skill, <rind dexterity tl!.I.v.e theil' premium in the

way at & larger compensation.. Formal education is lik(~~r to bring

a hl~er remunerative r &te in eomp:trlaon t.o eGual length of time

l!t'P~nt i n a:pp;re;m.icoehip t.r aining for e. t.rade. Tr.nt a lliera r cby

of ~y e;Ust. with the profession s $~eL.."Y'ing the lel,sd and f a rm

l abor t aking t..'1e l east. S,@,~'ilS t o ba the pr(P/a1ling ord~r.

Within each occupat ional grou.p t-here tends t o b~ a st.abiliz­

ing taetor lSfi as to k~~p wage& a nd\'Sa l atlee 00 tl givon l(,!Vt~L, In­

traoceupationHl mob1.lity "dtnesee·fl ].l ttl'e or no v;u'iety in pa)'ment ,

but interoocupllLtioMl rrtOhility RhOi'fs 'that there is l! deolooo (Ji!­

terenee in ,t.he l"nte of pay f or manual l aoor as compared to pro­

t e&siona.l workers. ?bis i s Pl'i!IlarlJ..7 dna t o. the rieid requir ements

·r.hlch necessitat~ a l a r gel' l.J1VestmetJ\. in the profe-sdorw..l and semi­

profe6s10M1 group's in contradi stincti on to the 11.ttle or no re­

qu1remoota in t.he unskilled groups.. This conditt on prevents M y

notable aJ:aOWlt of i"'.lohility from the unskilled c!lase to the pro-

t essiW"1<1.1 C18 8 S .

As long a s societ.j'cc-nt1nues 1..0 rate values to tn.ei r own

atandard witnOk-t. l"e-gar4d to lnt..r-lnai c worth, people lrl.ll b~ eom­

peneatedL'l aceord.'1fl{!p ;;it.'1 the prevail1f'!f. sta.nder c of v.'?lue.

Pr~st1ge 'Itill 'be ~iven t. 0 those who 8.dminist e r at t>. t 1:100 of oocial

crisis, and ~rk of daily routine cns 1"'aeter '¥Jill receive less

applause andpc11.The opportunities ofterrni i n certain pro-

to,ssions in the way ot self develoJii.Uellt in addition to the sat­

is!action of hnv.i.ng been ~.ble to l\!Ii'lkethe world b~tter either

seienti!'lcnlly,. educationally or polit.icall7 frequently ha s given

'Way to the quest of ,:'\ high monetary income,. The prestige" moder­

at.e routine, respect, gr egariousness, or urge for spotlight atten-

tion may inflUEnce those ,'lho regard the a ttr--..etlveness of 'Work

more important than a high income. 1,lkewise, the unattractiveness

ot apoaitlon sllch a s domestic work may in some instances increase

the wage to be paid. This is not. always truef'or the occupa.t.ions

on the lower levels of the sociill pyramid. I

The codes ot etbt C8 to,r prof esslonal men prohibit. them trom,

!ngaglng in eert,ain methods perfectly permissible to industry.

Even t hough mEn enter professi ons tor the sake of a livelihood

and in 50me ea~l)8 with the bope of draldng a. large sua 0.1 money.

the aeasure of 8UCCe88 in a profession ia: oot determined by what

77.

can be earned. but. by the &ervieea \hat can be rendered tQsociety.

The advl!"nceent or 8Octlet.y, rel1ef from auffer'i~or the promotion

of leamng though nat rettl monGY tor t.he prote.ssional group 1e

o.i"ten a.~ acCeptable to thea as it it were.

D1trerent quaJ.itlee and capaeltletto! 1ndivi(lua.ls manifest

:~'

th_ self' .in stratificat.ion. InnateequaUty dQes mt.erlst

in lite. Difterence in imlat.e abilit.ies are likely to be paid

&eeording t.G its degt"ee ot variance. It there were ten thousand

ice . aurs ot Sonja Beniets ability .8 sal8l"1 of ~250.000 a year

would oot. be 10 he-r CCiIJU!IBllti. Individuality dOf}$ receiVe a re­

ward in the .&1 of greatel" r e.'mlIleration. Persons bom within a

wealtbyand irn:.elllgent familY' ha ve a bett.er sta rting point ror their place an the wage sca~e from tho&e litho a re born 1n f! POo:r:: ~i2n

ignorant family. The obstaoles ot the forme'r are f ewer to sur­

mot.:nt due to the paren.tal ad.vaat3.ges. The inequality ot eapae1~~:r

mE!7 be in intelligence, t.al.ent,charaeter,or personality for

empleTers are w iUine to pay more tor persons ot exceptlontu

abUlt.y.

The trend tor occupations to c arry over from f at.her to son

YCuld lend to the beUet t.hat. there i8 not a great transfer from

one .occupational level to s oother. There is a gradual. gravitat.ion

or th,1t unskilled or semi-skilled t01lardthe intellectual occupa­

tions. wbile the opposlt.e current 1s rarelY' a matt.erof tree will

and Is almost always e. result or unpleasant Mceseit.y. This may

be due to the tact. t.hat individuals placed in t avorable ci.,.cUm- .

stances haVE! a greater chance t.o continue alongt.be professional.

line established in a. r~ily t ban individuals wbo have to over­

come man,. impediment.e t o reach the status ot the upper levels ot

the hierarchial c~a.ssltica.t1on.

78.

Outside pressure groups, which have l"esnltad in the forma­

tion pf laoor \1,'1101'15, have in S~ measur e altered wages a nd

s.tI.larit'H5 ~ The elosed~op ct;.n be 8dict8.tor t'P3~e degr.se.

PUlJU ~ opini011 in it,\S ida.f~ -v! ~hat Is justice for th~ worker has

b:r~ht etoout. sClel,ul legj.slatton in bebalf of the ;rorker.. "lhe

UlSW social ohi.looophy that contends th~tthere enoulf!. h6 a more

eqtl,.'ll di:atrtbution 00£ ~t\lth and that labor 1s entitled. to a. liv1ng

.. ago ba.s perm.eated indl1stl1' and arous.edaome.fSP1oyers to pay

higher salari€1$ . It tn.!:!.Y M.ve taken to e rOom of a wage :sUlbili­

zation p t'OgTa$±) fmly wage, or a living wage pl;m, bat its pow0r

to lift compe:nss.'tion to 11 blrj:ler lev-el is: notworbhy.. Social

mclInlity ~!I« socia l justice h,a'l.e heco:me ale);11 recogni~ed, in in­

du~ria.l Ufe.

Gttogr"uphic llm:wbility o.r 'Wol"kers dUe to at'taell.a:!ant, sent.1.-

ment, or oM'lership ( ) i' property ~i'leats ttseif in tbd.r "'fdl"".gS.

'rllC dl:~r:er!3it.~r atld davelopment of induutl"ial ,ent e.l;~Pl~is,e8 in 'the

various r egions of th e cotmt-t"1 is dGtGct.'.lble in tn(l ImY check of

its .?~ple . Th~ South '.tbich is t'.nt a s hi.~'11y iI'ldust r1..atilled a's

the North i s incllnod to ;e::r an a lowo:::, seale t."Jan t h.e other

regionao£ the United 3t~~te$.. The lJ:,rg~ Negro lX):pulat-iot'l. in the

.5tnJ.th is a t"..ont'ttbGtitlg f actor to ttl e ).~e;r !!1age rote. Discl"im­

in."!.ttoo against vutious racial. g-,l"'OU.ft6 is not ae \m~.o~n !;;4~&ctice

of the soe1sl wd eco·nmne W()rld. Cu£~~ent. prejudt~6 a nd rillur~

79.

to .acknowledge Ute true capacit.ies o~ 'WOmen workers has ter­

m natedin diaerimina,tion against them 1n t.h.e form of lower

paT throughout all areas.

The nanerous factors Intluenc1ng wages and :salaries lead

to many and varied avoouas mich chMig'o 'Wlt~ eyery nft circum­

stance. CUcStom-s,. t r aditiooe , and h~b1,ts a Te: not. p~man4lnt. 1n

nature and as tbf!!!' alter th~7 f>~rt oo,nt.rol on wages and salaries

of htIl'!l!m beings in the chfmging ,social o:r'der.

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Coole7, C. H. ,Sogl6L Procesa • ,New York, Scr1baer8., 1918.

Cox, J. D., The 37i:iCB§.ai. 9ll!!E. Wan •• New York, Ronal Pre8'~ 19. , ' '

Daugherty, C. R., lebor Prgbl", Ja AMrican Jp.dUatn. New . Tork, Roughto~lI1trlli1 00. ,19)8. ' '- '~ .

Darldeon, J., lY. brem'!' boa gL !He, lew York, , G. P. Putnam~. SOns, 'The fnickerb04ker Pre-sa, l.898. '

DartdaoD,. P. E., and Aaler.on, B.D.,. Oceeational J(obpl~1 a. e. American geRPr't,. $tantoN, Cal1tornia, st-Worcl Un1vfJt'81t.7 Pre •• , '19"'.

Dlcldnaon, ... !MI' e WHlth. Pr1ncetoa, Pr1noetou 1Ja1ver-alty Preas, 1.9.'1. ' ,,'

D1cJd.aaolJ, Z..C.,. : S?-Wmat'QS ~r1al Kroft. lin York, BaDal. Pr. •• , 1'11.

DouBw, P. H., I!!l.'WYH !aUla Y.3., Boston,' ~~. t6.rtuD -CO.,-1930, ' ~ _ , '" , -,

Doualaa. P. H., th, 'lhe0rr 2L Wage •• e. York, lIaom',Uan 00., 19,34. .• r,

Douglaa, P. H.<, 'Mf" as!.Y!t Fe!,,!, Chicaao"tJatyvslt-r of:. Chicago Pre, .. ,- 1925. . '; - .

Edie, L. De,' EoePI!!Ipa"f1jn!1plta u! rroD-J'!'b. Nn l'oiit,lhomaa ' CrowllCCh I 1926. '

E1Ibank, E. B.·, 9 •• tl,!IL Sog1ol,eq. New York, B. .C. Heath and ·Co. , 1932'1 '

Fa1rchild, F-. 11;4 , JPurDt •• , 1,,~.4 ' Buk, 1It,~ ' $., El._Kl3cM!m1ea. Vol. 1,4t4 edition, 1_ York, Vum'lJan Co., 19.39~ · .. ,

Fol'd, J., Ford, ltathenn. JloITOW, .l1!I. Ahol1u. !L Pt!ertl.,H· .. York, 1(&om1]]. ,Co • ., ' 19·31. .. . . . .. .

Gena!ll, P. F.,. ~t" It.,. li., ico9oJIlH·1 E~1nej.p1..8k am frob:}. ... Hew York,. Harpel'l Bros.,. 1942 •.

Glaahr,' Coo, .!ta, D1U!r.t1" •• I .. tOl"k, · ColWlbla tJnivel'.it~1'Pre8a, 1940.'

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VI .

ARTICLES

Allport., F. H., "SMing Women u 'rheT Are,," Barpm. New I.ork, Harper and &ros." 1.9.a9~ 1,E3.:397-408.

And.non, M. K., "Equal PlitT" !llor Wo1ll8D1a War lndustr1e.," Bul.. 1916, . Washington;. D •. 0 •. , Gov6rmaent h-'llltiflg Of.tle&, 19~.' .

__ 8l"8OJ1, M. K." "lour- Qu.s\l~ As To WGIMn i& War ID.duatr.1eo.,," BtU. 194, Jiashingt;oa, D. C., GOytt. Printing Ort1ce, 1942.

Beth, M. W.,"Ellte and the:al1~ .. ," Alaric. JOlU"D&l-St §2c1ologr. Chicago, Unlvel"altl' otCh1caco Press., 1942:, 47:146-".

'. ~~

t· . • . '" _. t'i! .....

Bush, V., eoppo"Uil1tT :~ t~ Profua1on.,· 'V!WSpesacha,. ,I .. lork, City Jle~. Pn1i»lish1ng £;'0 ••. '19.39. 5:SSV""'9. ,

.. ~t~, · ~

Oaroth~, lat-P.an; ftWapa,-J1tal $p!¥bu; ... Iork, City 'N· ••• Pub­lishing Co'. # 1938, 4~241. . , - : .

Carr, F. ~/." '''llelp WaRt.don. the, VlageLev:el, It Cbr1s\tp Sc1;Dct )(o;lto'l"" Bo-stDn,Cbrlat.1an Sclmoe Publ.1ahingSoc1et7, 19. , (Uq 21) ,...4- ' .

Car'hr, ~ .• N., "Th.EquUi\)1'_Wap,"~ gt Amlr1en ~, Philadelphia, Annals ot the ADer1can , 'ad8Dcrot: Pol1t1eal. and Social Sftenc.,1922, 1.00171-19. ,

Glark,H. ,., Simi.,. w. A.. H., "Bolf lfucb tanl lfake?lt _ricID llagazine, Springfield, Ohio, Crowell PubllShing ~. * ' 1939, 128 .• 94.

Clark. Ii •. F., '1obe7, and ,Pencoast.,"Tb.Scrc1al Etfee:tlvene'ss of Education, It Re'v1ew gL Eduutional Rt.elrcQ, 1940, 39-41-

.Clark, J. It., "'!he Cballenc1ng Baais of bnomicReapobs1bUlty, It ,lgu.mal .2L p,Ut1if Ec.gpnw;. Chicago, Unl,versltyot Cl:dcago Pre-sa, 191 .. 24:209-29-

, . eoa.;m., J. R., _ft~: !h,eor:l&1I an4 Wage Po,licles," Am!m.sa'~

1!OJd.cley1!!. ~.toA, 1l11n.ols) American koDomi.c , Assoc1-atJ.on,. 1<123,· 13.UO-U7.

Crowt~., $&l1li.14.1., ~~~ ~c:h1a .. MaD. WO:Rh?11 SaturdaY Ey~.~ Ph1ladelpbia, The Curtis Publishing Co., 1931, 20);{.

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Pa.~, 1.:. IL. ~ 1IPacto~ . De\e~ a.l fla.pe," Ani'l' It NINa J..,." Pb1ladelphla, A..~. -of tM AmJr-lcall ~ Qf Po.l:1tical and Social 3c1~.t 1922-1 1001''19--.8' .•

Plc1pcm ... ,B." ~ tn the· JSC¢n0lV 'oft-he D., 3.,ft M. l,S'" ft'aaldAf."ton, .De. C.~. Ooy't. Pr1flt.l."lI" O1fioe, 1m.

Pouftd;, .... , "\bat 1s A ~Qt..sa1on.tJ< Ettie!2L r' tt_ !Qkl . &wi_ otRft1O$ Ccrpo-r-at.1cm, 19> , ~4;84.

lie.JDOlcI8, 1- ·a •• ~0lUI "'en Wqe lat. .. , eo.t.aad. . PrieM, n . A¥£1Sil\ t=!, !sn"iaw. !Watlston.. lllinoi., ~. ~--de ~at •• " 1942 .. )2au1>:21;"289.

Iutt ..... , H. J." Wages M.<l Arawaab,lI Ie. lti9!l1c, I_toft, Rd1tor1al PUblicationa:, Ime., 194a,. lJj'11l8-1,.

Sal., Al'tbur, 1f000ups.tiOll," iila91os,111 ~ !qckliSUne • •• York, .~lan Co.); U:-424e

~ 1iIlUJ.. °Tr8ll4lr In ..... " ..,.,8! ~9.t Awn_} ..... ftltla4el~,- Anll«l .• or 'h~canAead.,. otPolit.1cal SAd Soc1al Sol.tne, 1929, 1431 ~lO8.

Tqlop" ~,. #S&laries v •• .,..,'. L1,,,.., lllftl,t., Uft 'fork, .'FIaDt .and f~)a CO:.; 1936,. 122111-38.

1Ut.tla, H. s., n''''~ la' PoIrvle_,-\?9bpo1 Ui Soq.m. , .. York, Sc1fUlce PNn, 19J.l,~l31S-17 .•

"Fl-=al.O .na. Cl"d«:&F, n. Inc • ., 1940, 'S;20.

ftS&lvt.. aM ~Jn !.B ll!pul:!llsh - .. Yo"" Edtt.Qr1al Publl.tlol1., Ihc •. , ,1939, 101-1280-282.

BSalarT, rops# 11 I~, Hew Ya:"t, ~Pub-l1~s Ino: .. , 1941Ji U1:19.

1t2Q ft>p sal.ar1a. s ImMl, ,.' tOft" n_klT PubUC;a:t.-1G1'lB, Inc·. II l.'lA 1SI.l.4. ..

"wag. PoUq f'or the. War," 1m Duulle. 1_ York, EC-t.orial Publlcat.lona., Inc., 1942., lO7:1-8.

88 •

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