"One of the year's best books on Puerto Rico." —El Nuevo Dia, San Juan

"[The authors] are highly regarded labor economists who have written extensively and intelligently in the past, and again in this volume, on Puerto Rican migration and labor markets... There isabundant statistical data and careful analysis, some of which challenges the conventional wisdom. Highly recommended." —Choice

Island Paradox is the first comprehensive, census-based portrait of social and economic life in Puerto Rico. During its nearly fiftyyears as a U.S. commonwealth, the relationship between Puerto Rico's small, developing economy and the vastly larger, more industrialized United States has triggered profound changes in the island's industry and labor force. Puerto Rico has been deeply affected by the constant flow of its people to and from the mainland, and by the influx of immigrant workers from other nations. Distinguished economists Francisco Rivera-Batiz and Carlos Santiago provide the latest data on the socioeconomic status of Puerto Rico today, and examine current conditions within the context of the major trends of the past two decades.

Island Paradox describes many improvements in Puerto Rico's standard of living, including rising per-capita income, longer life expectancies, greater educational attainment, and increased job prospects for women. But it also discusses the devastating surge in unemployment. Rapid urbanization and a vanishing agricultural sector have led to severe inequality, as family income has become increasingly dependent on education and geographic location. Although Puerto Rico's close ties to the United States were the major source of the island's economic growth prior to 1970, they have also been at the root of recent hardships. Puerto Rico's trade andbusiness transactions remain predominantly with the United States, but changes in federal tax, social, and budgetary policies, along with international agreements such as NAFTA, now threaten to alter the economic ties between the island and the mainland.

Island Paradox reveals the social and family changes that have occurred among Puerto Ricans on the island and the mainland. The significant decline in the island's population growth is traced in part to women's increased pursuit of educational and employment opportunities before marrying. More children are being raised by singleparents, but this stems from a higher divorce rate and not a rise in teenage pregnancy. The widespread circular migration to and from the United States has had strong repercussions for the island's labor markets and social balance, leading to concerns about an island brain drain. The Puerto Rican population in the United States hasbecome increasingly diverse, less regionally concentrated and not, as some have claimed, in danger of becoming an underclass.

Within a single generation Puerto Rico has experienced social and economic shifts of an unprecedented magnitude. Island Paradox charts Puerto Rico's economic fortunes, summarizes the major demographic trends, and identifies the issues that will have the strongest bearings on Puerto Rico's prospects for a successful future.

FRANCISCO L. RIVERA-BATIZ is director of the Program in Economic Policy Management and associate professor in the Economics Department and the Latino Studies Program at Columbia University. He is also associate professor of international studies at Teachers College, Columbia University.

CARLOS E. SANTIAGO is professor in the Department of Latin American and Caribbean Studies and in the Department of Economics and associate vice president for academic affairs at the State University of New York, Albany.
 

A Volume in the RSF Census Series

Networks and Markets argues that economists' knowledge of markets and sociologists' rich understanding of networks can and should be combined. Together they can help us achieve a more coherent view of economic life, where transactions follow both the logic of economic incentives and the established channels of personal relationships.

Market exchange is impersonal, episodic, and carried out at arm's length. All that matters is how much the seller is asking, and how much the buyer is offering. An economic network, by contrast, is based upon more personalized and enduring relationships between people tied together by more than just price. Networks and Markets focuses on how the two concepts relate to each other: Are social networks an essential precondition for successful markets, or do networks arise naturally out of markets, as faceless traders build reputations and gain confidence in each other?

The book includes contributions by both sociologists and economists, applying the concepts of markets and networks to concrete empirical phenomena. Among the topics analyzed, the book explains how, in Taiwan, South Korea, and Japan, firms combine into tightly-knit business blocs, how wholesalers in a Marseille fish market earn the loyalty of customers, and how ethnic retailers in the U.S. share valuable market information with other shopkeepers from their ethnic group. A response to each chapter discusses the issue from the standpoint of the other discipline. Sociologists are challenged to go beyond small-scale economic exchange and to integrate their concept of networks into a broader understanding of the economic system as a whole, while economists are challenged to consider the economic implications of network ties, which can be strong or weak, unconditional or highly contingent.

This book proves that both economics and sociology provide stronger insights when they study markets and networks as parallel forms of exchange. But it also clarifies the healthy division of labor that remains between the two disciplines. Sociologists are adept at showing how markets are framed by social institutions; economists specialize in explaining how markets perform, taking the social context as a given. Networks and Markets showcases what each discipline does best and reveals where each discipline would do better by borrowing from the other.

JAMES E. RAUCH is professor of economics at the University of California, San Diego.

ALESSANDRA CASELLA is professor of economics at Columbia University.

CONTRIBUTORS: Ronald. S Burt, Gregory Basharov, Robert C. Feenstra, Neil Fligstein, Avner Greif, Gary C. Hamilton, Deng-Shing Huang, Alan Kirman, John F. Padgett, Rebeca Raijman, Joel Sobel, Marta Tienda.

Half of all workers are hired through personal referrals, and networks of social connections channel the flows of capital, technology, and international trade. Sociologists and economists alike recognize that economic exchange is shaped by social networks, which propagate information and facilitate trust, but each discipline brings a distinct theoretical perspective to the study of networks. Sociologists have focused on how networks shape individual behavior, economists on how individual choices shape networks. The Missing Links is a bold effort by an interdisciplinary group of scholars to synthesize sociological and economic theories of how economic networks emerge and evolve.

Interweaving sophisticated theoretical models and concrete case studies, The Missing Links is both an introduction to the study of economic networks and a catalyst for further research. Economists Rachel Kranton and Deborah Minehart illustrate their field’s approach to modeling network formation, showing how manufacturers form networks of suppliers in ways that maximize profits. Exemplifying the sociological approach, Ronald Burt analyzes patterns of cooperation and peer evaluations among colleagues at a financial organization. He finds that dense connections of shared acquaintances lead to more stable reputations.  In the latter half of the book, contributors combine the insights of sociology and economics to explore a series of case studies. Ray Reagans, Ezra Zuckerman, and Bill McEvily investigate an R & D firm in which employees participate in overlapping collaborative teams, allowing the authors to disentangle the effects of network structure and individual human capital on team performance. Kaivan Munshi and Mark Rosenzweig examine how economic development and rising inequality in India are reshaping caste-based networks of mutual insurance and job referrals. Their study shows that people’s economic decisions today are shaped both by the legacy of the caste hierarchies and by the particular incentives and constraints that each individual faces in an evolving labor market.

Economic globalization is forging new connections between people in distant corners of the world, while unsettling long-standing social relations. Anyone interested in understanding the opportunities and challenges of this era of rapid change will find a highly informative guide in The Missing Links.

JAMES E. RAUCH is professor of economics at the University of California, San Diego, and a research associate at the National Bureau of Economic Research.

CONTRIBUTORS: Ronald S. Burt, Gregory Besharov, Robert C. Feenstra, Neil Fligstein, Avner Greif, Gary G. Hamilton, Deng-Shing Huang, Alan Kirman, John F. Padgett, Rebeca Raijman, Joel Sobel, Marta Tienda.

This book offers a systematic study of those individuals who derive their livelihood and professional satisfactions from foundation employment above a clerical level. Replies to questionnaires addressed to foundations and to foundation staff, supplemented by other research, enabled the authors to secure a wealth of data, not previously available, concerning such staff personnel. The data relates to their origin, education or training, professional or occupational background, personal qualities, recruitment for foundation service, job specialization in foundations and in-service and on-the-job training, salary levels, retirement, fringe benefits and perquisites of various kinds. These data are systematically analyzed according to the employing foundation's asset size, program, founding auspices, staff size, geographical location, and other variables. The comprehensiveness of the data also makes possible a census of full-time and part-time staff employed by all foundations and better reveals the rather distorted pattern of the distribution of that staff among the employing foundations.

A feature of the study is a chapter that tabulates and analyzes the comments on foundation employment of some 420 foundation executives—on their satisfactions, dissatisfactions, and frustrations and on how foundation employment might be made more attractive. The pros and cons of the related issue of increased professionalization of foundation service is considered in the light of these comments and from the standpoint, also, of the current philanthropic policies of different kinds of foundations. The probable long-term effect on foundation service of certain provisions of the Tax Reform Act of 1969 is also examined.

ARNOLD J. ZURCHER was formerly Executive Director of the Alfred P. Sloan Foundation and is Professor of Politics at New York University.

JANE DUSTAN is Associate for Program Development of the Association for the Aid of Crippled Children.

The past thirty years have witnessed a dramatic decline in the number of U.S. students pursuing advanced degrees in science and an equally dramatic increase in the number of professionals leaving scientific careers. Leaving Science provides the first significant examination of this worrisome new trend. Economist Anne E. Preston examines a wide range of important questions: Why do professionals who have invested extensive time and money on a rigorous scientific education leave the field? Where do these scientists go and what do they do? What policies might aid in retaining and improving the quality of life for science personnel?

Based on data from a large national survey of nearly 1,700 people who received university degrees in the natural sciences or engineering between 1965 and 1990 and a subsequent in-depth follow-up survey, Leaving Science provides a comprehensive portrait of the career trajectories of men and women who have earned science degrees. Alarmingly, by the end of the follow-up survey, only 51 percent of the original respondents were still working in science. During this time, federal funding for scientific research decreased dramatically relative to private funding. Consequently, the direction of scientific research has increasingly been dictated by market forces, and many scientists have left academic research for income and opportunity in business and industry. Preston identifies the main reasons for people leaving scientific careers as dissatisfaction with compensation and career advancement, difficulties balancing family and career responsibilities, and changing professional interests. Highlighting the difference between male and female exit patterns, Preston shows that most men left because they found scientific salaries low relative to perceived alternatives in other fields, while most women left scientific careers in response to feelings of alienation due to lack of career guidance, difficulty relating to their work, and insufficient time for their family obligations.

Leaving Science contains a unique blend of rigorous statistical analysis with voices of individual scientists, ensuring a rich and detailed understanding of an issue with profound consequences for the nation's future. A better understanding of why professionals leave science can help lead to changes in scientific education and occupations and make the scientific workplace more attractive and hospitable to career men and women.

ANNE E. PRESTON is associate professor of economics at Haverford College, Pennsylvania.

An economy that operates 24/7—as ours now does—imposes extraordinary burdens on workers. Two-fifths of all employed Americans work mostly during evenings, nights, weekends, or on rotating shifts outside the traditional 9-to-5 work day. The pervasiveness of nonstandard work schedules has become a significant social phenomenon, with important implications for the health and well-being of workers and their families. In Working in a 24/7 Economy, Harriet Presser looks at the effects of nonstandard work schedules on family functioning and shows how these schedules disrupt marriages and force families to cobble together complex child-care arrangements that should concern us all.

The number of hours Americans work has received ample attention, but the issue of which hours—or days—Americans work has received much less scrutiny. Working in a 24/7 Economy provides a comprehensive overview of who works nonstandard schedules and why. Presser argues that the growth in women's employment, technological change, and other demographic changes over the past thirty years gave rise to the growing demand for late-shift and weekend employment in the service sector. She also demonstrates that most people who work these hours do so primarily because it is a job requirement, rather than a choice based on personal considerations. Presser shows that the consequences of working nonstandard schedules often differ for men and women since housework and child-rearing remain assigned primarily to women even when both spouses are employed. As with many other social problems, the burden of these schedules disproportionately affects the working poor, reflecting their lack of options in the workplace and adding to their disadvantage. Presser also documents how such work arrangements have created a new rhythm of daily life within many American families, including those with two earners and absent fathers. With spouses often not at home together in the evenings or nights, and parents often not at home with their children at such times, the relatively new concept of "home-time" has emerged as primary concern for families across the nation.

Employing a wealth of empirical data, Working in a 24/7 Economy shows that nonstandard work schedules are both highly prevalent among American families and generate a level of complexity in family functioning that demands greater public attention. Presser makes a convincing case for expanded research and meaningful policy initiatives to address this growing social phenomenon.

HARRIET B. PRESSER is Distinguished University Professor in the Department of Sociology at the University of Maryland.

The Association of the Bar of the City of New York (ABCNY) is no ordinary professional organization. Formed in 1870 and housed in an imposing mid-town edifice, it was the first modern bar association, nationally known for its eminent membership, its reformist stance—and its intimidating selectivity. During much of its history, the ABCNY appeared to be more an upper-class, WASP legal club than an open, collegial association.

How did such an organization fare in the face of post-war pressures for inclusiveness? From Patrician to Professional Elite offers a rare view of the internal dynamics of an institution adapting to a changed environment. The ABCNY maintained its elite identity by adopting a meritocratic organizational model in place of a class-based model. By shedding its overt exclusivity, the ABCNY asserted its legitimacy; by embracing an "open elite" or meritocratic model, the associate retained its high standing and relative homogeneity. In fact, the ABCNY today is dominated by the same functional group of lawyers as before, the corporate legal elite.

This fascinating study of organizational change prompts a re-examination of fundamental questions about the class basis of modern professionalism and the dominance of elites within professions, in addition to illuminating the larger question of the role of elite institutions in democratic societies.

MICHAEL J. POWELL is associate professor of sociology at the University of North Carolina at Chapel Hill.

"Portes suggests that immigration constitutes an especially appropriate Mertonian 'strategic research site' for economic sociology in that it provides very good opportunities for investigating the embeddedness of economic relationships in social situations....the contributors expand the conventional domain of economic sociology quite literally in both time and space."—Contemporary Sociology

"Alejandro Portes and his splendid band of collaborators make clear that the causes, processes, and consequences of migration vary dramatically from group to group, that a group's history makes a profound difference to its fate in the American economy. They have produced a sinewy book, a book worth arguing with."—Charles Tilly, Columbia University

The Economic Sociology of Immigration forges a dynamic link between the theoretical innovations of economic sociology with the latest empirical findings from immigration research, an area of critical concern as the problems of ethnic poverty and inequality become increasingly profound. Alejandro Portes' lucid overview of sociological approaches to economic phenomena provides the framework for six thoughtful, wide-ranging investigations into ethnic and immigrant labor networks and social resources, entrepreneurship, and cultural assimilation. Mark Granovetter illustrates how small businesses built on the bonds of ethnicity and kinship can, under certain conditions, flourish remarkably well. Bryan R. Roberts demonstrates how immigrant groups' expectations of the duration of their stay influence their propensity toward entrepreneurship. Ivan Light and Carolyn Rosenstein chart how specific metropolitan environments have stimulated or impeded entrepreneurial ventures in five ethnic populations. Saskia Sassen provides a revealing analysis of the unexpectedly flexible and vital labor market networks maintained between immigrants and their native countries, while M. Patricia Fernandez Kelly looks specifically at the black inner city to examine how insular cultural values hinder the acquisition of skills and jobs outside the neighborhood. Alejandro Portes also depicts the difference between the attitudes of American-born youths and those of recent immigrants and its effect on the economic success of immigrant children.

ALEJANDRO PORTES is professor of sociology at Princeton University and faculty associate of the Woodrow Wilson School of Public Affairs.

CONTRIBUTORS: Mark Granovetter, M. Patricia Fernández Kelly, Ivan Light, Alejandro Portes, Bryan R. Roberts, Carolyn Rosenstein, and Saskia Sassen.

According to the American dream, hard work and a good education can lift people from poverty to success in the "land of opportunity." The unskilled immigrants who came to the United States from southern, central, and eastern Europe in the late 19th and early 20th centuries largely realized that vision. Within a few generations, their descendants rose to the middle class and beyond. But can today’s unskilled immigrant arrivals—especially Mexicans, the nation's most numerous immigrant group—expect to achieve the same for their descendants? Social scientists disagree on this question, basing their arguments primarily on how well contemporary arrivals are faring. In Italians Then, Mexicans Now, Joel Perlmann uses the latest immigration data as well as 100 years of historical census data to compare the progress of unskilled immigrants and their American-born children both then and now.

The crucial difference between the immigrant experience a hundred years ago and today is that relatively well-paid jobs were plentiful for workers with little education a hundred years ago, while today's immigrants arrive in an increasingly unequal America. Perlmann finds that while this change over time is real, its impact has not been as strong as many scholars have argued. In particular, these changes have not been great enough to force today’s Mexican second generation into an inner-city "underclass." Perlmann emphasizes that high school dropout rates among second-generation Mexicans are alarmingly high, and are likely to have a strong impact on the group’s well-being. Yet despite their high dropout rates, Mexican Americans earn at least as much as African Americans, and they fare better on social measures such as unwed childbearing and incarceration, which often lead to economic hardship. Perlmann concludes that inter-generational progress, though likely to be slower than it was for the European immigrants a century ago, is a reality, and could be enhanced if policy interventions are taken to boost high school graduation rates for Mexican children.

Rich with historical data, Italians Then, Mexicans Now persuasively argues that today’s Mexican immigrants are making slow but steady socio-economic progress and may one day reach parity with earlier immigrant groups who moved up into the heart of the American middle class.

JOEL PERLMANN is senior scholar at the Levy Economics Institute of Bard College and the Levy Institute Research Professor at the college.

Copublished with the Levy Economics Institute of Bard College

Once they accept a job, most Americans have little control over their work environments. In Worker Participation, John Pencavel examines some of those rare workplaces where employees both own and manage the companies they work for: the plywood cooperatives and forest worker cooperatives of the Pacific Northwest. Rather than relying on abstract theories, Pencavel reviews the actual experiences of these two groups of worker co-ops. He focuses on how worker-owned companies perform when compared to more traditional firms and whether companies operate more efficiently when workers determine how they are run. He also looks at the long-term viability of these enterprises and why they are so unusual.

Most businesses are constantly caught in the battle over whether to use the firm's profits to pay labor or to increase capital. Worker cooperatives provide an appealing case study because the interests of labor and capital are aligned. If individuals have a role in setting goals, they should have an added incentive to help meet those goals, and productivity should benefit. On the other hand, observers have long argued that, since any single employee in a co-op reaps only a small benefit from working hard, workers may shirk work, and productivity can flag. Furthermore, co-ops often have difficulty raising capital, since they are constrained by how much money the workers have, and banks are often reluctant to lend them money.

Using some fifteen years of data on forty mills in Washington State, Pencavel examines how worker co-ops really function. He assesses the practical problems of running a workplace where every employee is a boss. He looks at worker productivity, on-the-job injuries and financial risks facing owner-workers. He considers whether co-ops are inherently unstable and if they are plagued by infighting among the many worker-owners.

Although many of the co-ops he studied have closed or been replaced by conventional businesses, Pencavel judges them to have been a success. Despite the risks inherent in such operations, allowing workers to make the decisions that profoundly affect them produces many benefits, including workplace efficiency and increased job security. However, Pencavel concludes, if more Americans are to enjoy such a working arrangement, labor laws will have to be changed, participation encouraged, and a more vigorous public debate about worker participation must take place. This book provides an excellent place to start the discussion.

JOHN PENCAVEL is Levin Professor of Economics, Stanford University.