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Nations with high levels of economic inequality tend to have high rates of entrepreneurial activity. In this paper, we develop propositions about this relationship, based upon current research. Although we provide some descriptive analyses to support our propositions, our paper is not an empirical test but rather a theoretical exploration of new ideas related to this topic. We first define entrepreneurship at the individual and societal level and distinguish between entrepreneurship undertaken out of necessity and entrepreneurship that takes advantage of market opportunities. We then explore the roles that various causes of economic inequality play in increasing entrepreneurial activity, including economic development, state policies, foreign investment, sector shifts, labor market and employment characteristics, and class structures. The relationship between inequality and entrepreneurship poses a potentially disturbing message for countries with strong egalitarian norms and political and social policies that also wish to increase entrepreneurial activity. We conclude by noting the conditions under which entrepreneurship can be a source of upward social and economic mobility for individuals.

Purpose – This chapter explores the relationship between religious affiliation and wealth ownership focusing on generational differences.

Methodology – I use data from the National Longitudinal Survey of Youth and the Health and Retirement Study to create descriptive statistics and regression analyses of the association between religious affiliation in childhood and adulthood for people of two cohorts.

Findings – This chapter shows that there are important patterns by religious affiliation in total net worth, real assets, and asset allocation across generations. My findings are consistent with past work on religion and wealth ownership showing that Jews, mainline Protestants, and white Catholics tend to have higher total wealth than other groups. In addition, I find that black Protestants, Hispanic Catholics, and conservative Protestants tend to have relatively low wealth, consistent with research on religion, race/ethnicity, and wealth. My findings also show that these patterns are relatively robust across generations.

Research implications – The findings are relevant to research on inequality, wealth accumulation and saving, life course processes, and the effect of religion on stratification outcomes.

Originality/Value – This research shows how religious affiliation and wealth are related across generations.

The association between religion and material well-being is fundamental to research on inequality and stratification. Broadly considered, this association includes questions about how religious affiliation and religiosity are associated with work behaviors, education, income, wealth, and related family processes. Early social sciences debated if and how these traits and outcomes are related and offered important insight into the mechanisms that might explain empirical patterns (Simmel, 1997; Sombart, 1911; Weber, 1905/1930). However, the religious landscape and the mechanisms creating religion and well-being have both changed dramatically since the early days of the social sciences. The proliferation of Protestant denominations, the changing role of Catholics, and the increased presence of other religious traditions are beyond the scope of these early works. Moreover, the relationship between religion and stratification is no longer a function of large-scale shifts in the mode of production but rather reflects changing individual and group approaches to human capital, work, and saving. In the 1960s, sociologists revived these debates, but empirical challenges and a narrowing of the discussion to focus on Protestant–Catholic differences weakened and ultimately ended the literature's momentum (Broom & Glenn, 1966; Glenn & Hyland, 1967; Laumann, 1969; Lazerwitz & Rowitz, 1964; Lenski, 1961).

The chapters in Part I highlight some of the central reasons for studying entrepreneurship at the aggregate, family, and individual levels. Lippmann, Davis, and Aldrich develop society level propositions about the relationship between inequality and entrepreneurship. They define entrepreneurship for both individuals and societies, and they argue that factors such as development, state policies, sector shifts, and changing labor market conditions affect levels of inequality and also increase incentives for entrepreneurship. The authors distinguish entrepreneurship undertaken out of necessity and entrepreneurship that takes advantage of market opportunities, and they propose that changing social and economic conditions affect entry into each type of entrepreneurship. The arguments presented in this chapter are well-grounded in previous theoretical and empirical research, but they ask about the relationship between entrepreneurship and inequality in a fresh, new way. Not only does this chapter clarify the factors that lead to entrepreneurship, but it also identifies new relationships between business start-ups and stratification that have not been explored previously.