"At a time when we are desperate for any jobs at all, we must remember that the quality of work is also important. Far too many people work hard yet cannot support their families and have few prospects for upward mobility. Harry Holzer, Julia Lane, David Rosenblum, and Fredrik Andersson help us understand the trajectory of job creation in America and where good jobs come from. They utilize a unique data source that has the great virtue of including information on employers as well as the more standard measures of individual traits and hence they can study the interaction of firm and worker characteristics. They are able to describe the processes of job creation-birth and death of firms as well as their expansion and contraction-and they bring geography into the mix and show how the creation, or lack thereof, of good jobs varies by metropolitan area. This rich and detailed book will be essential for anyone interested in job quality in America."
-PAUL OSTERMAN, Nanyang Technological University Professor of Human Resources and Management, the M.I.T. Sloan School of Management

"Reversing the rise in income inequality and the increasing polarization of the labor market will take a concerted focus on both the quality of jobs employers create and the education and skills of the workforce. Using a unique matched data set of employers and employees, Where Are All the Good Jobs Going? provides a new take on some old issues, importantly on the relationship between job quality and job displacement and on strategies metropolitan areas can use to support new businesses that create good jobs."
-EILEEN APPELBAUM, senior economist, Center for Economic and Policy Research

Deindustrialization in the United States has triggered record-setting joblessness in manufacturing centers from Detroit to Baltimore. At the same time, global competition and technological change have actually stimulated both new businesses and new jobs. The jury is still out, however, on how many of these positions represent a significant source of long-term job quality and security. Where Are All the Good Jobs Going? addresses the most pressing questions for today’s workers: whether the U.S. labor market can still produce jobs with good pay and benefits for the majority of workers and whether these jobs can remain stable over time.

What constitutes a “good” job, who gets them, and are they becoming more or less secure? Where Are All the Good Jobs Going? examines U.S. job quality and volatility from the perspectives of both workers and employers. The authors analyze the Longitudinal Employer Household Dynamics (LEHD) data compiled by the U.S. Census Bureau, and the book covers data for twelve states during twelve years, 1992–2003, resulting in an unprecedented examination of workers and firms in several industries over time.

Counter to conventional wisdom, the authors find that good jobs are not disappearing, but their character and location have changed. The market produces fewer good jobs in manufacturing and more in professional services and finance. Not surprisingly, the best jobs with the highest pay still go to the most educated workers. The most vulnerable workers—older, low-income, and low-skilled—work in the most insecure environments where they can be easily downsized or displaced by a fickle labor market. A higher federal minimum wage and increased unionization can contribute to the creation of well paying jobs. So can economic strategies that help smaller metropolitan areas support new businesses. These efforts, however, must function in tandem with policies that prepare workers for available positions, such as improving general educational attainment and providing career education.

Where Are All the Good Jobs Going? makes clear that future policies will need to address not only how to produce good jobs but how to produce good workers. This cohesive study takes the necessary first steps with a sensible approach to the needs of workers and the firms that hire them.

HARRY J. HOLZER is professor of public policy at Georgetown University.

JULIA I. LANE is program director of Science of Science and Innovation Policy at the National Science Foundation, research fellow at the Institute of Labor (IZA), Bonn Germany, and former senior research fellow at the U.S. Bureau of the Census.

DAVID B. ROSENBLUM is senior economic analyst at NORC at the University of Chicago.

FREDRIK ANDERSSON is an economist in the Economics Department of the Office of the Comptroller of the Currency, U.S. Department of the Treasury.

"Bringing together a team of internationally known social scientists and historians, Social Contracts Under Stress exam ines the expansion of the middle classes in the United States, Western Europe, and Japan, as well as the problems that the universalist promise of the post-1945 'democratization of wealth' ran into in later decades. A truly outstanding anthology that convinces by virtue of its intellectual rigor and cohesion-and its timeliness-as the industrialized nations face the age-old social contract question, but this time on a global scale."
-Volker R. Berghahn, Columbia University

"It is rare that a single volume covers so important a theme across so wide a swath of nations at so high a level of analysis. This book explores the postwar social contract as it comes under increasing strain at the turn of our own century. The growth of the middle class-above all the turning of former proletarians into members of the bourgeoisie-was the social and political basis of postwar stability and democracy. This process, though similar across the industrialized world, took different inflections in various nations: from the the European focus on redistribution and social welfare, through the North American liberalist concern with consumer society, to the Japanese solution whereby exporting industries earned the wherewithal that allowed inefficient modes of production to continue, cushioning the hard social choices that would have been necessary in its absence. In our own day, however, this social contract has been challenged: by issues of race and gender and, above all, by globalization and the hard social choices it requires. It is such problems, at the core of contemporary political dilemmas, that these essays address with vision, rigor, and coherence."
-Peter Baldwin, University of California, Los Angeles

The years following World War II saw a huge expansion of the middle classes in the world's industrialized nations, with a significant part of the working class becoming absorbed into the middle class. Although never explicitly formalized, it was as though a new social contract called for government, business, and labor to work together to ensure greater political freedom and more broadly shared economic prosperity. For the most part, they succeeded. In Social Contracts Under Stress, eighteen experts from seven countries examine this historic transformation and look ahead to assess how the middle class might fare in the face of slowing economic growth and increasing globalization.

The first section of the book focuses on the differing experiences of Germany, Britain, France, the United States, and Japan as they became middle-class societies. The British working classes, for example, were slowest to consider themselves middle class, while in Japan by the 1960s, most workers had abandoned working-class identity. The French remain more fragmented among various middle classes and resist one homogenous entity. Part II presents compelling evidence that the rise of a huge middle class was far from inclusive or free of social friction. Some contributors discuss how the social contract reinforced long-standing prejudices toward minorities and women. In the United States, Ira Katznelson writes, Southern politicians used measures that should have promoted equality, such as the GI bill, to exclude blacks from full access to opportunity. In her review of gender and family models, Chiara Saraceno finds that Mediterranean countries have mobilized the power of the state to maintain a division of labor between men and women. The final section examines what effect globalization might have on the middle class. Leonard Schoppa's careful analysis of the relevant data shows how globalization has pushed "less skilled workers down and more skilled workers up out of a middle class that had for a few decades been home to both." Although Europe has resisted the rise of inequality more effectively than the United States or Japan, several contributors wonder how long that resistance can last.

Social Contracts Under Stress argues convincingly that keeping the middle class open and inclusive in the face of current economic pressures will require a collective will extending across countries. This book provides an invaluable guide for assessing the issues that must be considered in such an effort.

OLIVIER ZUNZ is Commonwealth Professor of History, University of Virginia.

LEONARD SCHOPPA is associate professor in the Woodrow Wilson Department of Government and Foreign Affairs, University of Virginia.

NOBUHIRO HIWATARI is professor of political science at the University of Tokyo.

Offers two extended essays by two eminent social scientists on trusteeship and foundation management. The first essay, by Dr. Moore, reflects the author's long interest in the relations between the economy and the society. He examines trusteeship as a combination and interrelation of three main principles: custodial relations, lay control, and the law of trusts. Dr. Young's essay, the longer and more pragmatic of the two, applies these principles to the actual management of philanthropic foundations. Dr. Young draws upon his experience as a president of two social science foundations in his discussion of both the old and new "proprietary" foundations.

DONALD R. YOUNG is at Rockefeller University.

WILBERT E. MOORE is at the Russell Sage Foundation.

"Yinger writes as if four decades of protest and progressive legislation have barely altered the terrain upon which minority Americans struggle for equality. He's right....Yinger figures that housing discrimination costs black homebuyers $5.7 billion and Hispanic homebuyers $3.4 billion every three years." —Washington Monthly

Nearly three decades after the passage of the Fair Housing Act, illegal housing discrimination against blacks and Hispanics remains rampant in the United States. Closed Doors, Opportunities Lost reports on a landmark nationwide investigation of real estate brokers, comparing their treatment of equally qualified white, black, and Hispanic customers. The study reveals pervasive discrimination. Real estate brokers showed 25 percent fewer homes to the minority buyers, and loan agencies were 60 percent more likely to turn down minority applicants. Realtors and lenders also charged higher prices to minority buyers, withheld or gave insufficient financial and application information, and showed them homes only in non-white neighborhoods. Residents of minority neighborhoods faced further difficulties trying to sell their homes or obtain housing credit and homeowner's insurance.

Economist John Yinger provides a lucid account of these disturbing facts and shows how deeply housing discrimination can affect the living conditions, education, and employment of black and Hispanic Americans. Deprived of residential mobility and discouraged from owning their own homes, many minority families are unable to flee stagnant or unsafe neighborhoods. Two thirds of black and Hispanic children are concentrated in high-poverty schools where educational achievement is low and dropout rates are high. The employment possibilities for minority job-seekers are diminished by the ongoing movement of jobs from the cities to the suburbs, where housing discrimination is particularly severe. Altogether, these effects of housing discrimination create a vicious cycle—discrimination imposes social and economic barriers upon blacks and Hispanics, and the resulting hardships fuel the prejudice that leads whites to associate minorities with neighborhood deterioration.

Closed Doors, Opportunities Lost provides a history of fair housing and fair lending enforcement and joins the intense debate about integration policy. Yinger proposes a bold, comprehensive program that aims not only to end discrimination in housing and mortgage markets but to reverse their long-term effects by stabilizing poorer neighborhoods and removing the stigma of integration. He urges reforms to strengthen the enforcement powers of HUD and other agencies, provide funding for poor and integrated schools, encourage local housing and race-counseling programs, and shift income tax breaks toward low-income homebuyers.

Closed Doors, Opportunities Lost provides valuable insight into the causes, extent, and consequences of housing discrimination—undeniably one of America's most vexing and important problems. This volume speaks directly to the ongoing debate about the nature and causes of poverty and the underclass, civil rights policy, the Community Reinvestment Act, and the plight of our nation's cities.

JOHN YINGER is professor of economics and public administration, and director for the Metropolitan Studies Program at the Center for Policy Research, the Maxwell School, Syracuse University.

On Record provides descriptive accounts of record keeping in a variety of important organizations: schools, from elementary to graduate school; consumer credit agencies, general business organizations, and life insurance companies; the military and security agencies; the Census Bureau and the Social Security Administration; public welfare agencies, juvenile courts, and mental hospitals. It also examines the legal status of records. The authors pose questions such as the following: Who determines what records are kept? Who has access to the records?

STANTON WHEELER is professor of law and sociology at Yale University.

CONTRIBUTORS: Rodolfo Alvarez, Pierce Baker, Ivar Berg, Nancy Bordier, David Caplovitz, Burton R. Clark, Kai T. Erikson, Daniel E. Gilbertson, Abraham S. Goldstein, David A. Goslin, Adwin M. Lemert, Roger M. Lemert, Roger W. Little, Wilbert E. Moore, Jesse Orlansky, H. Laurence Ross, James Rule, James Salvate, Joseph Steinberg, Stanton Wheeler, Don H. Zimmerman.

"The Russell Sage series on job quality is a very welcome contribution in a world where employment seems to be polarizing. Low-Wage Work in Denmark is especially noteworthy because the Danish case is internationally regarded as a model to follow if we desire flexible labor markets without social exclusion. And, as Niels Westergaard-Nielsen and his colleagues show in their laudably balanced and empirically rich analyses, the model does seem to work. Danish low-wage workers clearly fare much better than elsewhere. This excellent study explains why. It is a must-read for policymakers and analysts; an indispensable resource for social scientists."
-GØSTA ESPING-ANDERSEN, professor of sociology, Universitat Pompeu Fabra, Barcelona

"All nations struggle with the problem of unskilled working-age people. 'Flexicurity' -few labor restrictions and a generous safety net-is Denmark's unique arrangement. There, the unskilled are not poor, move rapidly out of low-skill jobs, and are treated with dignity-all huge accomplishments. But the system also creates problems-high tax rates, welfare dependency, and costs, and the effective exclusion of immigrants. Low-Wage Work in Denmark, a volume in the Russell Sage series of systematic, cross- country analyses of low-wage work, gives us a careful and in-depth assessment-both blemishes and beauty-of this small country's approach."
-ROBERT HAVEMAN, professor emeritus of public affairs and economics, Robert M. La Follette School of Public Affairs, University of Wisconsin-Madison

"For millions of employed Americans, 'work doesn't pay,' occupational and social benefits are meager, and opportunities for shifting into substantially higher-paying work are scarce. American analysts often view low-paid work as the lamentable but inevitable byproduct of a flexible labor market, technological advancement, and the global economy. This first-rate volume will challenge that sense of resignation, as it vividly demonstrates that a multitude of institutional reforms could both reduce the incidence of low-wage work and lessen its problematic consequences. The Danish flexicurity model, which melds flexibility for employers with economic security for workers, operates alongside impressive economic outcomes, including comparatively high labor force participation, low unemployment, and high mobility out of low-wage work. This accessible collection outlines an institutional blueprint that could help structure an overhaul of low-wage work in the United States should the political opportunity arise."
-JANET GORNICK, professor, political science and sociology, City University of New York, and director, Luxembourg Income Study

The Danish economy offers a dose of American labor market flexibility inside a European welfare state. The Danish government allows employers a relatively high level of freedom to dismiss workers, but also provides generous unemployment insurance. Widespread union coverage and an active system of collective bargaining help regulate working conditions in the absence of strong government regulation. Denmark’s rate of low-wage work—8.5 percent—is the lowest of the five countries under analysis. In Low-Wage Work in Denmark, a team of Danish researchers combines comprehensive national registry data with detailed case studies of five industries to explore why low-end jobs are so different in Denmark. Some jobs that are low-paying in the United States, including hotel maids and meat processors, though still demanding, are much more highly compensated in Denmark. And Danes, unlike American workers, do not stay in low-wage jobs for long. Many go on to higher paying jobs, while a significant minority ends up relying temporarily on income support and benefits sustained by one of the highest tax rates in the world.  Low-Wage Work in Denmark provides an insightful look at the particularities of the Danish labor market and the lessons it holds for both the United States and the rest of Europe.

NIELS WESTERGAARD-NIELSEN is professor of economics at the School of Business, University of Aarhus.

CONTRIBUTORS: Anne-Mette Sonne, Nuka Buck, Tor Eriksson, Lars Esbjerg, Jacob K. Eskildsen, Klaus K. Grunert, Jingkun Li, Ann-Kristina Lokke Nielsen, Robert Solow, Ole Henning Sorensen.

A Volume in the RSF Case Studies of Job Quality in Advanced Economies

New York City stands as the first expression of the modern city, a mosaic of disparate neighborhoods born in 1898 with the amalgamation of the five boroughs and shaped by the passions of developers and regulators, architects and engineers, politicians and reformers, immigrant entrepreneurs and corporate builders. Through their labor, their ideals, and their often fierce battles, the physical and social dimensions—the landscape—of the modern city were forged. The original essays in The Landscape of Modernity tell the compelling story of the growth of New York City from 1900 to 1940, from the beginnings of its skyscraper skyline to the expanding reaches of suburbanization.

At the beginning of the century, New York City was already one of the world's leading corporate and commercial centers. The Zoning Ordinance of 1916, initially proposed by Fifth Avenue merchants as a means of halting the uptown spread of the garment industry, became the nation's first comprehensive zoning law and the proving ground for a new occupation—the urban planner. During the 1920s, frenzied development created a vertical metamorphosis in Manhattan's booming business district, culminating in its most spectacularly modern icon, the Empire State Building. The city also spread laterally, with the controversial development of subway systems and the creation of the powerful Port of New York Authority, whose new bridges and tunnels decentralized the population and industry of New York. New York's older ethnic enclaves were irrevocably altered by this new urban landscape: the Lower East Side's Jewish community was nearly dismantled by the flight of the garment industry and the attractiveness of new suburbs, while Little Italy fought government forces eager to homogenize commercial use of the streets by eliminating the traditional pushcart peddlers.

Illustrated with striking photographs and maps, The Landscape of Modernity links important scenes of growth and development to the larger political, economic, social, and cultural processes of the early twentieth century.

DAVID WARD is professor of geography and Vice-Chancellor at the University of Wisconsin, Madison.

OLIVIER ZUNZ is professor of history at the University of Virginia.

CONTRIBUTORS: Daniel Bluestone, Jameson W. Doig, Gail Fenske, Robert Fishman, Donna Gabaccia, Nancy L. Green, Deryck Holdsworth, Clifton Hood, Thomas Kessner, Deborah Dash Moore, David Nasaw, Keith D. Revel, David Ward, Marc A. Weiss, Carol Willis, Olivier Zunz.

This bold and lively essay is one of those rarest of intellectual achievements, a big small book. In its short length are condensed enormous erudition and impressive analytical scope. With verve and self-assurance, it addresses a broad, central question: How can we improve our understanding of the large-scale processes and structures that transformed the world of the nineteenth century and are transforming our world today?

Tilly contends that twentieth-century social theories have been encumbered by a nineteenth century heritage of “pernicious postulates.” He subjects each misleading belief to rigorous criticism, challenging many standard social science paradigms and methodologies. As an alternative to those timeless, placeless models of social change and organization, Tilly argues convincingly for a program of concrete, historically grounded analysis and systematic comparison.

To illustrate the strategies available for such research, Tilly assesses the works of several major practitioners of comparative historical analysis, making skillful use of this selective review to offer his own speculative, often unconventional accounts of our recent past.

Historically oriented social scientists will welcome this provocative essay and its wide-ranging agenda for comparative historical research. Other social scientists, their graduate and undergraduate students, and even the interested general reader will find this new work by a major scholar stimulating and eminently readable.

This is the second of five volumes commissioned by the Russell Sage Foundation to mark its seventy-fifth anniversary.

"In this short, brilliant book Tilly suggests a way to think about theories of historical social change....This book should find attentive readers both in undergraduate courses and in graduate seminars. It should also find appreciative readers, for Tilly is a writer as well as a scholar." —Choice

CHARLES TILLY is at the New School for Social Research.

Standard economic theory is built on the assumption that human beings act rationally in their own self interest. But if rationality is such a reliable factor, why do economic models so often fail to predict market behavior accurately? According to Richard Thaler, the shortcomings of the standard approach arise from its failure to take into account systematic mental biases that color all human judgements and decisions. Economics assumes behavior is consistently rational, when it is, in fact, only partially, or quasi-rational.

The papers collected in Quasi-Rational Economics represent a significant sampling of this innovative approach, written by a leader in the field along with co-authors Thomas Russell, H. M. Shefrin, Daniel Kahneman, Jack Knetsch, Werner De Bondt, Eric Johnson, Charles Lee, and Andrei Shleifer. Thaler and his colleagues challenge established economic theories in such areas as consumer choice and financial markets, offering empirical evidence and alternate models based on behavioral research about how economic decisions are actually made.

Quasi-Rational Economics deals with a number of intriguing questions. Why do people have trouble ignoring sunk costs and recognizing opportunity costs? How do people’s preferences for already endowed possessions suppress trading volume and keep markets from clearing? What are the effects on market behavior of consumer attitudes about fairness? How do people’s mental accounting procedures lead them to behave in economically inconsistent ways? Why do investors’ tendencies to overreact to past trends cause losing firms to outperform winners in the stock market?

In offering answers to these questions, Quasi-Rational Economics provides an essential introduction to a new field. It mounts a trenchant critique of current practice in economics and calls for richer, more realistic approaches to formulating and testing economic theory. More than just a call for reform, this book provides numerous illustrations of how the call can be answered.

"Richard Thaler's book offers great evidence for the importance of quasi rational behavior in economic settings, thus stimulating the reader. Its broad coverage makes an interesting introduction to a new field, as well as informing about further applications and methods." —Kyklos

RICHARD H. THALER is Henrietta Johnson Louis Professor of Economics and director of the Center for Behavioral Economics and Decision Research, Johnson Graduate School of Management, Cornell University. He is research associate at the National Bureau of Economic Research.

Times Square, in its heyday, expressed American culture in the moment of vivid change. A stellar group of critics and scholars examines this transitional moment in Inventing Times Square, a study of the development of New York's central entertainment district. A fascinating visit to Times Square, from its christening in 1905 to its eventual decline after the Depression, the book explores the colorful configuration of institutions and cultural practices that propelled Times Square from a local and regional entertainment center to a national cultural marketplace.

Changes in the economy, in religion, in leisure culture, and in aesthetics gave birth to a geographical space that fostered Vaudeville and Tin Pan Alley, Flo Ziegfeld and Billy Rose, the spectacle of the Hippodrome and the bright lights of the Great White Way. Out of this same place eventually came national network radio and many Hollywood films. Though conceived as a public space, Times Square was quickly transformed into a commercial center. Power brokers wielded their influence on a public ready to succumb to consumerism. Theatrical entertainment  became a large-scale national business based in, and operated out of, Times Square. A new commercial aesthetic travelled with Joseph Urban from Vienna to Times Square to Palm Beach, bringing to society a sophisticated style that will forever say "Broadway."

Times Square as the "center of the universe" had its darker sides as well, for it was the testing ground for a new morality. The packaging of sexuality on the stage gave it legitimacy on the streets, as hotels and sidewalks became the province of female prostitution, male hustling, and pornography.

At the center of New York City, Times Square's commercial activities gave full rein to urban appetites and fantasies, and challenged and defied the norms of behavior that prevailed elsewhere in the city. Cultural history at its finest, Inventing Times Square portrays the vibrant convergence of social and economic forces on Forty-second Street.

WILLIAM R. TAYLOR teaches history at State University of New York at Stony Brook and is program director of the New York Institute for the Humanities at New York University.

CONTRIBUTORS: Jean-Christophe Agnew, Betsy Blackmar, Peter Buckley, George Chauncey Jr., Peter A. Davis, Lewis A. Erenberg, Richard Wightman Fox, Philip Furia, Timothy J. Gilfoyle, Gregory Gilmartin, David Hammack, Ada Louise Huxtable, Margaret Knapp, Eric Lampard, William R. Leach, Brooks McNamara, William Wood Register Jr., Laurence Senelick, Robert W. Snyder, William R. Taylor.