ABSTRACT
How can we understand inequality in the labor market? Why do, for example, men have more prestigious jobs than women? In this chapter I will review the role of various types of “resources” or “capital” in the labor market. I will begin with human capital theory, which emphasizes the importance of “what you can do,” i.e., your skills and knowledge (10.1). Then I will discuss social capital theories, which instead argue that what matters is “who you know” (10.2). Subsequently, I will address the idea that “who you belong to,” your group affiliation, is key, because of discrimination in the labor market (10.3). After having discussed these three types of resources (human capital, social capital and group affiliation), I will show how they help us in understanding why someone’s social background (e.g., gender, ethnic group, neighborhood) is related to inequalities in the labor market (10.4). I will illustrate this, in more detail, for gender inequality (10.5).
