The system of social standing is referred to by sociologists as social stratification. Social stratification is the division of a population into groups according to wealth, income, education, family history, and authority in a society.

The various vertical layers of rock are also referred to as "stratification" by geologists. The uneven distribution of society’s resources is typically represented by the layers of people that make up society. In the eyes of society, the top layer of the social structure is made up of those with more resources. The lowest strata are represented by other groups of individuals who have dwindling resources. Socioeconomic status is the classification in which an individual falls.

In the United States, the majority of people and institutions show a regard for equality and the idea that everyone has an equal chance of success. In other words, social mobility is determined by skill and hard work rather than inherited riches, unfair treatment, institutional racism, or societal beliefs. This focus on self-determination, motivation, and effort upholds the American ideal that individuals are in charge of their own social status.

Sociologists do acknowledge social stratification as a structure that exists across society and makes inequities visible. Even while there are differences between people, sociologists are more concerned with broader social trends. Sociologists investigate the social stratification of people by comparing their origins, affiliations with particular groups, identities, and geographic locations. No one, rich or poor, can be held responsible for social inequality because everyone is a part of a system where some people prosper and others fail. The majority of Americans think personal decisions determine rising and falling. However, sociologists recognize that social structures are products of and supported by society since they have an impact on a person’s social standing.

Different societies have different criteria for defining stratification. In the majority of countries, economic stratification is based on two factors: wealth, or the net value of one’s possessions, and income, or one’s salary or dividends from investments. Although social standing is frequently determined by a person’s level of wealth or poverty, there are other significant considerations. People with status, for instance, are venerated more than those without in various cultures because they are appreciated. The elderly are valued in some societies, while they are derided or ignored in others. Cultural attitudes in societies frequently support stratification.

Our parents are a significant social status determinant. Parents frequently impart their social standing to their offspring. Along with social status, people inherit cultural norms, values, and beliefs that go along with a certain way of life. They distribute these among a network of relatives and friends who act as resources and allies. One of the reasons first-generation college students perform less than other students is due to this. They don’t have access to the resources and help that are often available to people whose parents have attended college.

The occupational organization of a society contains additional determinants. For instance, teachers frequently hold advanced degrees yet are paid relatively less. Many people think that teaching is an honorable profession, thus teachers should carry out their duties for the benefit of their pupils and their profession—not for financial gain. However, professional athletes, executives, and others employed in the corporate sphere do not have the same attitude. These kinds of cultural attitudes and precepts encourage and sustain social and economic inequality.

Sociologists make a distinction between two different stratification system kinds. Closed systems don’t adapt well to changes in social standing. People cannot change levels, and social interactions between levels are not allowed. Estate, slavery, and caste systems are examples of closed systems. Open systems allow movement and interaction between classes, and are based on achievement. The ways various systems function reflect, accentuate, and support particular cultural values, so influencing personal opinions. This section will explore the caste and class systems of stratification and will also address meritocracy as the best system.

The consistency, or lack thereof, of a person’s rank across the variables that define social stratification over the course of a lifetime is referred to by sociologists as status consistency. Due to the impossibility of leaving a class, caste systems exhibit high status consistency, whereas the more flexible class system exhibits low status consistency.

For example, Serena graduated from high school but skipped college. Being a high school graduate but not a college graduate is more typical of lower-middle class people. She started landscaping after high school, which corresponds with lower-middle class or even lower class as physical labor. Serena eventually nonetheless founded her own business. She employed people. She received bigger contracts. Serena acquired a business and increased her income. These characteristics describe the upper middle class. Serena’s social position is flexible, as seen by the inconsistencies in her income, occupation, and educational background, which consistently reflect her low social rank.

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