There is one thing that moves online consumers to click “add to cart,” that allows sellers to accept certain forms of online payment, and that makes online product reviews meaningful: trust. Without trust, online interactions can’t advance. But how is trust among strangers established on the Internet? What role does reputation play in the formation of online trust? In eTrust, editors Karen Cook, Chris Snijders, Vincent Buskens, and Coye Cheshire explore the unmapped territory where trust, reputation, and online relationships intersect, with major implications for online commerce and social networking.

eTrust uses experimental studies and field research to examine how trust in anonymous online exchanges can create or diminish cooperation between people. The first part of the volume looks at how feedback affects online auctions using trust experiments. Gary Bolton and Axel Ockenfels find that the availability of feedback leads to more trust among one-time buyers, while Davide Barrera and Vincent Buskens demonstrate that, in investment transactions, the buyer’s own experience guides decision making about future transactions with sellers. The field studies in Part II of the book examine the degree to which reputation facilitates trust in online exchanges. Andreas Diekmann, Ben Jann, and David Wyder identify a “reputation premium” in mobile phone auctions, which not only drives future transactions between buyers and sellers but also payment modes and starting bids. Chris Snijders and Jeroen Weesie shift focus to the market for online programmers, where tough competition among programmers allows buyers to shop around. The book’s third section reveals how the quality and quantity of available information influences actual marketplace participants. Sonja Utz finds that even when unforeseen accidents hinder transactions—lost packages, computer crashes—the seller is still less likely to overcome repercussions from the negative feedback of dissatisfied buyers.

So much of our lives are becoming enmeshed with the Internet, where ordinary social cues and reputational networks that support trust in the real world simply don’t apply. eTrust breaks new ground by articulating the conditions under which trust can evolve and grow online, providing both theoretical and practical insights for anyone interested in how online relationships influence our decisions.

KAREN S. COOK is Ray Lyman Wilbur Professor of Sociology and the current chair of the sociology department at Stanford University.

CHRIS SNIJDERS is professor at the Eindhoven University of Technology.

VINCENT BUSKENS is associate professor in the Department of Sociology/ICS at Utrecht University.

COYE CHESHIRE is assistant professor at the School of Information at the University of California, Berkeley.

CONTRIBUTORS: Vincent Buskens, Coye Cheshire, Karen S. Cook, Chris Snijders, Judd Antin, Brandy Aven, Davide Barrera, Gary E. Bolton, Andreas Diekmann, Alexandra Gerbasi, Ben Jann, Tapan Khopkar, Azi Lev-On, Masafumi Matsuda, Uwe Matzat, Axel Ockenfels, Paul Resnick, Hiroyuki Takahashi, Yukihiro Usui, Sonja Utz, Jeroen Weesie, David Wyder, Toshio Yamagishi, and Noriaki Yoshikai.


A Volume in the Russell Sage Foundation Series on Trust

Conventional wisdom holds that trust is essential for cooperation between individuals and institutions—such as community organizations, banks, and local governments. Not necessarily so, according to editors Karen Cook, Margaret Levi, and Russell Hardin. Cooperation thrives under a variety of circum-stances. Whom Can We Trust? examines the conditions that promote or constrain trust and advances our understanding of how cooperation really works.

From interpersonal and intergroup relations to large-scale organizations, Whom Can We Trust? uses empirical research to show that the need for trust and trustworthiness as prerequisites to cooperation varies widely. Part I addresses the sources of group-based trust. One chapter focuses on the assumption—versus the reality—of trust among coethnics in Uganda. Another examines the effects of social-network position on trust and trustworthiness in urban Ghana and rural Kenya. And a third demonstrates how cooperation evolves in groups where reciprocity is the social norm. Part II asks whether there is a causal relationship between institutions and feelings of trust in individuals. What does—and doesn’t—promote trust between doctors and patients in a managed-care setting? How do poverty and mistrust figure into the relations between inner city residents and their local leaders? Part III reveals how institutions and networks create environments for trust and cooperation. Chapters in this section look at trust as credit-worthiness and the history of borrowing and lending in the Anglo-American commercial world; the influence of the perceived legitimacy of local courts in the Philippines on the trust relations between citizens and the government; and the key role of skepticism, not necessarily trust, in a well-developed democratic society.

Whom Can We Trust? unravels the intertwined functions of trust and cooperation in diverse cultural, economic, and social settings. The book provides a bold new way of thinking about how trust develops, the real limitations of trust, and when trust may not even be necessary for forging cooperation.

KAREN S. COOK is Ray Lyman Wilbur Professor of Sociology and the current chair of the sociology department at Stanford University.

MARGARET LEVI is Jere L. Bacharach Professor of International Studies in the Department of Political Science at the University of Washington, Seattle.

RUSSELL HARDIN is professor of politics at New York University.

CONTRIBUTORS: Abigail Barr, Bruce G. Carruthers,  Matthew R. Cleary,  Jean Enminger,  Henry Farrell,  Margaret Foddy,  Corina Graif,  James Habyarimana,  Philip T. Hoffman, Macartan Humphreys, Jeffrey C. Johnson,  Roderick Kramer,  Stefanie Mullborn,  Gabriella R. Montinola,  Elinor Ostrom,  Daniel N. Posner,  Gilles Postel-Vinay,  Jean-Laureant Rosenthal,  Robert J. Sampson,  Irena Stepanikova,  Susan C. Stokes,  David Thom,  James Walker,  Jeremy M. Weinstein,  Toshio Yamagishi.

A Volume in the Russell Sage Foundation Series on Trust

With the nation enjoying a remarkable long and robust economic expansion, AfricanAmerican employment has risen to an all-time high. Does this good news refute the notion of a permanently disadvantaged black underclass, or has one type of disadvantage been replaced by another? Some economists fear that many newly employed minority workers will remain stuck in low-wage jobs, barred from better-paying, high skill jobs by their lack of educational opportunities and entrenched racial discrimination. Prosperity for All? draws upon the research and insights of respected economists to address these important issues.

Prosperity for All? reveals that while African Americans benefit in many ways from a strong job market, serious problems remain. Research presented in this book shows that the ratio of black to white unemployment has actually increased over recent expansions. Even though African American men are currently less likely to leave the workforce, the number of those who do not find work at all has grown substantially, indicating that joblessness is now concentrated among the most alienated members of the population. Other chapters offer striking evidence that racial inequality is still pervasive. Among men, black high school dropouts have more difficulty finding work than their Latino or white counterparts. Likewise, the glass ceiling that limits minority access to higher paying promotions persists even in a strong economy. Prosperity for All? ascribes black disadvantage in the labor force to employer discrimination, particularly when there is strong competition for jobs. As one study illustrates, economic upswings do not appear to change racial preferences among employers, who remain less willing to hire African Americans for more skilled low-wage jobs.

Prosperity for All? offers a timely investigation into the impact of strong labor markets on low-skill African-American workers, with important insights into the issues engendered by the weakening of federal assistance, job training, and affirmative action programs.

ROBERT CHERRY is professor of economics at Brooklyn College and the Graduate Center of the City University of New York.

WILLIAM M. RODGERS III is chief economist of the U.S. Department of Labor. He is on leave from the College of William and Mary where he is the Frances L. and Edwin L. Cummings Associate Professor of Economics.

CONTRIBUTORS: Heather Boushey, Cecilia Conrad, Mary Corcoran, Sandra Danziger, Sheldon Danziger, William Darity Jr., Gregory E. DeFreitas,  Richard B. Freeman,  Colleen Heflin,  Joyce P. Jacobsen,  Chinhui Juhn,  Ariel Kalil,  Sanders Korenman, Laurence M. Levin,  Judith Levine, Philip Moss, Samuell L. Meyers Jr., Cordelia W. Reimers,  Daniel Rosen,  Kristin Seefeldt,  Kristine Siefert,  William E. Spriggs,  Chris Tilly,  Richard Tolman,  Rhonda M. Williams.  

In France, low wages have historically inspired tremendous political controversy. The social and political issues at stake center on integrating the working class into society and maintaining the stability of the republican regime. A variety of federal policies—including high minimum wages and strong employee protection—serve to ensure that the low-wage workforce stays relatively small. Low-Wage Work in France examines both the benefits and drawbacks of this politically inspired system of worker protection. France’s high minimum wage, which is indexed not only to inflation but also to the average increase in employee wages, plays a critical role in limiting the development of low-paid work. Social welfare benefits and a mandatory thirty-five hour work week also make life easier for low-wage workers. Strong employee protection is a central characteristic of the French model, but high levels of protection for employees may also be one of the causes of France’s chronically high rate of unemployment. The threat of long-term unemployment may, in turn, contribute to a persistent sense of insecurity among French workers. Low-Wage Work in France provides a lucid analysis of how a highly regulated labor market shapes the experiences of workers—for better and for worse.

ÈVE CAROLI is professor of economics at University Paris X.

JÉRÔME GAUTIÉ is professor of economics at the University of Paris 1 Panthéon-Sorbonne.

CONTRIBUTORS: Anne Marie Arborio, Philippe Askenazy, Mathieu Beraud, Jean-Baptiste Berry, Jacques Bouteiller, Lise Causse, Thierry Colin, Emilie Feriel, Benoit Grasser, Christine Guegnard, Annie Lamenthe, Philippe Mehaut, Sylvie-Anne Meriot, Philippe Mosse, Sophie Prunier-Poulmaire, Robert Solow.

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

Poverty declined significantly in the decade after Lyndon Johnson’s 1964 declaration of “War on Poverty.” Dramatically increased federal funding for education and training programs, social security benefits, other income support programs, and a growing economy reduced poverty and raised expectations that income poverty could be eliminated within a generation. Yet the official poverty rate has never fallen below its 1973 level and remains higher than the rates in many other advanced economies. In this book, editors Maria Cancian and Sheldon Danziger and leading poverty researchers assess why the War on Poverty was not won and analyze the most promising strategies to reduce poverty in the twenty-first century economy.

Changing Poverty, Changing Policies documents how economic, social, demographic, and public policy changes since the early 1970s have altered who is poor and where antipoverty initiatives have kept pace or fallen behind. Part I shows that little progress has been made in reducing poverty, except among the elderly, in the last three decades. The chapters examine how changing labor market opportunities for less-educated workers have increased their risk of poverty (Rebecca Blank), and how family structure changes (Maria Cancian and Deborah Reed) and immigration have affected poverty (Steven Raphael and Eugene Smolensky). Part II assesses the ways childhood poverty influences adult outcomes. Markus Jäntti finds that poor American children are more likely to be poor adults than are children in many other industrialized countries. Part III focuses on current antipoverty policies and possible alternatives. Jane Waldfogel demonstrates that policies in other countries—such as sick leave, subsidized child care, and schedule flexibility—help low-wage parents better balance work and family responsibilities. Part IV considers how rethinking and redefining poverty might take antipoverty policies in new directions. Mary Jo Bane assesses the politics of poverty since the 1996 welfare reform act. Robert Haveman argues that income-based poverty measures should be expanded, as they have been in Europe, to include social exclusion and multiple dimensions of material hardships.

Changing Poverty, Changing Policies shows that thoughtful policy reforms can reduce poverty and promote opportunities for poor workers and their families. The authors’ focus on pragmatic measures that have real possibilities of being implemented in the United States not only provides vital knowledge about what works but real hope for change.

Listen to Maria Cancian speak about marriage on NPR's Weekend Edition Saturday.

MARIA CANCIAN is professor of public affairs and social work and research affiliate of the Institute for Research on Poverty at the University of Wisconsin–Madison.

SHELDON DANZIGER is Henry J. Meyer Distinguished University Professor of Public Policy and director of the National Poverty Center at the Gerald R. Ford School of Public Policy at the University of Michigan.

CONTRIBUTORS: Mary Jo Bane, Rebecca M. Blank, Maria Cancian, Benjamin Cowan, Sheldon Danziger, Robert Haveman, Harry J. Holzer, Brian A. Jacob, Markus Jäntti, Jens Ludwig, Katherine Magnuson, Daniel R. Meyer, Robert Moffitt, Deborah Reed, Steven Raphael, John Karl Scholz, Eugene Smolensky, Katherine Swartz, Elizabeth Votruba-Drzal, Jane Waldfogel, Geoffrey L. Wallace

An Institute for Research on Poverty Affiliated Book on Poverty and Public Policy

Considers how Americans define the quality of their life experiences, as expressed in their perceptions, evaluations, and satisfactions. Based on research conducted by the Institute for Social Research at the University of Michigan, the book uses data which are representative of the national population eighteen years of age and older, and employs the major social characteristics of class, age, education, and income. The authors cover such topics as the residential environment, the experience of work, marriage, and family life, and personal resources and competence. They also report on the situation of women and the quality of the life experience of black people.

ANGUS CAMPBELL is professor of psychology and sociology and director of the Institute for Social Research at the University of Michigan.

PHILIP E. CONVERSE is Robert C. Angell Professor of Political Science and Sociology and program director of the Center for Political Studies at the Institute for Social Research at the University of Michigan.

WILLARD L. RODGERS is senior study director of the Survey Research Center, Institute for Social Research, at the University of Michigan.

With the introduction of more aggressive policing, prosecution, and sentencing since the late 1970s, the number of Americans in prison has increased dramatically. While many have credited these “get tough” policies with lowering violent crime rates, we are only just beginning to understand the broader costs of mass incarceration. In Barriers to Reentry? experts on labor markets and the criminal justice system investigate how imprisonment affects ex-offenders’ employment prospects, and how the challenge of finding work after prison affects the likelihood that they will break the law again and return to prison.

The authors examine the intersection of imprisonment and employment from many vantage points, including employer surveys, interviews with former prisoners, and state data on prison employment programs and post-incarceration employment rates. Ex-prisoners face many obstacles to re-entering the job market—from employers’ fears of negligent hiring lawsuits to the lost opportunities for acquiring work experience while incarcerated. In a study of former prisoners, Becky Pettit and Christopher Lyons find that employment among this group was actually higher immediately after their release than before they were incarcerated, but that over time their employment rate dropped to their pre-imprisonment levels. Exploring the demand side of the equation, Harry Holzer, Steven Raphael, and Michael Stoll report on their survey of employers in Los Angeles about the hiring of former criminals, in which they find strong evidence of pervasive hiring discrimination against ex-prisoners. Devah Pager finds similar evidence of employer discrimination in an experiment in which Milwaukee employers were presented with applications for otherwise comparable jobseekers, some of whom had criminal records and some of whom did not. Such findings are particularly troubling in light of research by Steven Raphael and David Weiman which shows that ex-criminals are more likely to violate parole if they are unemployed. In a concluding chapter, Bruce Western warns that prison is becoming the norm for too many inner-city minority males; by preventing access to the labor market, mass incarceration is exacerbating inequality. Western argues that, ultimately, the most successful policies are those that keep young men out of prison in the first place.

Promoting social justice and reducing recidivism both demand greater efforts to reintegrate former prisoners into the workforce. Barriers to Reentry? cogently underscores one of the major social costs of incarceration, and builds a compelling case for rethinking the way our country rehabilitates criminals.

SHAWN BUSHWAY is professor of criminal justice at the University at Albany.

MICHAEL A. STOLL is professor of public policy at the University of California, Los Angeles.

DAVID F. WEIMAN is professor of economics at Barnard College, Columbia University.

CONTRIBUTORS: Shauna Briggs, Shawn Bushway, Harry J. Holzer, Vera Kachnowski, Jeffrey R. Kling, Christopher J. Lyons, Devah Pager, Becky Pettit, Steven Raphael, William J. Sabol, Michael A. Stoll, Faye Taxman, Meridith Thanner, John H. Tyler, Mischelle Van Brakle, Christy A. Visher, David F. Weiman, and Bruce Western

Winner of the 2000 James S. Coleman Best Book Award from the Rational Choice Section of the American Sociological Association

Institutions play a pivotal role in the economic functioning of any society. Understanding the foundation of social norms, networks, and beliefs within institutions is crucial to explaining much of what occurs in modern economies. Recently, economic sociologists have explored how ties among individuals and groups facilitate economic activity, while "institutional economists" have focused on the formal "rules of the game" that regulate economic processes via government and law. The New Institutionalism in Sociology argues that a full understanding of economic life will depend on blending these new lines of research on institutions with traditional sociological insights into the social structures that lie at their core.

The contributors to this volume explore many questions about the way institutions emerge and operate. How do grassroots mores and practices evolve to an institutional level? How do institutional norms then regulate economic activity, and what are the advantages of formal versus informal constraints? What are the sources of trust and cooperation in trading markets? What role do cultural networks play in the economic survival of immigrant communities? And how does conflict and bargaining affect the evolution of community norms?

The New Institutionalism in Sociology also discusses how economic fluctuations arise from interactions between local agencies and the institutional environment. Among the topics addressed here are the influence of labor activism on the distribution of income, the association between highly competitive "winner-take-all" job markets and increased wage inequality in the United States, and the effect of property right conventions on technical innovation and productivity in pre-industrial England. A final section explores how deeply embedded cultural traditions have colored the transition from state socialism to market economies in Eastern Europe.

The New Institutionalism in Sociology establishes a valuable template for a sociological conception of economic organization. Its interdisciplinary paradigm signals an important advance in understanding how institutions shape social and economic life.

MARY C. BRINTON is associate professor of sociology at the University of Chicago.

VICTOR NEE is Goldwin Smith Professor of Sociology and chair of the Department of Sociology at Cornell University.

CONTRIBUTORS: Robert C. Ellickson, Jean Ensminger, Robert Feenstra, Robert H. Frank, Avner Greif, Gary G. Hamilton, Rosemary L. Hopcroft, Paul Ingram, Takehiko Kariya, Jack Knight, Eric Kostello, Douglas C. North, Alejandro Portes, Julia Sensenbrenner, Ivan Szelenyi, Bruce Western. 

The mere word “bureaucracy” brings to mind images of endless lines, piles of paperwork, and frustrating battles over rules and red tape. But some bureaucracies are clearly more efficient and responsive than others. Why? In Teaching, Tasks, and Trust, distinguished political scientists John Brehm and Scott Gates show that a good part of the answer may be found in the roles that middle managers play in teaching and supporting the front-line employees who make a bureaucracy work.

Brehm and Gates employ a range of sophisticated modeling and statistical methods in their analysis of employees in federal agencies, police departments, and social service centers. Looking directly at what front-line workers say about their supervisors, they find that employees who feel they have received adequate training have a clearer understanding of the agency’s mission, which leads to improved efficiency within their departments. Quality training translates to trust – employees who feel supported and well-trained for the job are more likely to trust their supervisors than those who report being subject to constant monitoring and a strict hierarchy. Managers who “stand up” for employees—to media, government, and other agency officials—are particularly effective in cultivating the trust of their workers. And trust, the authors find, motivates superior job performance and commitment to the agency’s mission. Employees who trust their supervisors report that they work harder, put in longer hours, and are less likely to break rules. The authors extend these findings to show that once supervisors grain trust, they enjoy greater latitude in influencing how employees allocate their time while working.

Brehm and Gates show how these three executive roles are interrelated—training and protection for employees gives rise to trust, which provides supervisors with the leverage to stimulate improved performance among their workers. This new model—which frames supervisors as teachers and protectors instead of taskmasters—has widespread implications for training a new generation of leaders and creating more efficient organizations.

Bureaucracies are notorious for inefficiency, but mid-level supervisors, who are often regarded as powerless, retain tremendous power to build a more productive workforce. Teaching, Tasks, and Trust provides a fascinating glimpse into a bureaucratic world operating below the radar of the public eye—a world we rarely see while waiting in line or filling out paperwork.

JOHN BREHM is professor of political science at the University of Chicago.

SCOTT GATES is research professor at the International Peace Research Institute, Oslo, and professor at the Norwegian University of Science and Technology.

A Volume in the Russell Sage Foundation Series on Trust

In recent years, the German government has intentionally expanded the low-wage work sector in an effort to reduce exceptionally high levels of unemployment. As a result, the share of the German workforce employed in low-paying jobs now rivals that of the United States. Low Wage Work in Germany examines both the federal policies and changing economic conditions that have driven this increase in low-wage work. The new “mini-job” reflects the federal government’s attempt to make certain low-paying jobs attractive to both employers and employees. Employers pay a low flat rate for benefits, and employees, who work a limited number of hours per week, are exempt from social security and tax contributions. Other factors, including slow economic growth, a declining collective bargaining system, and the influx of foreign workers, also contribute to the growing incidence of low-wage work. Yet while both Germany and the United States have large shares of low-wage workers, German workers receive health insurance, four weeks of paid vacation, and generous old age support—benefits most low-wage workers in the United States can only dream of. The German experience offers an important opportunity to explore difficult trade-offs between unemployment and low-wage work.

GERHARD BOSCH is professor of sociology at the University of Duisburg-Essen.

CLAUDIA WEINKOPF is deputy director of the Institute for Work, Skills, and Training at the University of Duisburg-Essen.

CONTRIBUTORS: Lars Czommer, Karen Jaehrling, Thorsten Kalina, Robert Solow, Achim Vanselow, Dorothea Voss-Dahm.

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