How can we explain the persistence of gender hierarchy over transforma
tions in its socioeconomic base? Part of the answer lies in the mediat
ion of gender inequality by taken-for-granted interactional processes
that rewrite inequality into new institutional arrangements. The probl
ems of interacting cause actors to automatically sex-categorize others
and, thus, to cue gender stereotypes that have various effects on int
eractional outcomes, usually by modifying the performance of other, mo
re salient identities. Because changes in the status dimension of gend
er stereotypes lag behind changes in resource inequalities, interactio
nal status processes can reestablish gender inequalities in new struct
ural forms. Interactional sex categorization also biases the choice of
comparison others, causing men and women to judge differently the rew
ards available to them. Operating in workplace relations, these proces
ses conserve inequality by driving the gender-labeling of jobs, constr
ucting people as gender-interested actors, contributing to employers'
discriminatory preferences, and mediating men's and women's perception
s of alternatives and their willingness to settle for given job outcom
es.