A Volume in the American Sociological Association’s Rose Series in Sociology

Winner of the 2012 Academy of Management's George R. Terry Book Award

Winner of the 2013 Inequality, Poverty, and Mobility Outstanding Book Award Presented by the American Sociological Association's Section on Inequality, Poverty, and Mobility

"Arne Kalleberg has written the definitive volume on our precarious, polarized U.S. labor market. This engagingly written tour of the American workplace illuminates its subject matter beautifully."
-CHRIS TILLY, director, Institute for Research on Labor and Employment, UCLA

"Good Jobs, Bad Jobs powerfully documents the profound transformation that the U.S. labor market has undergone since the mid-1970s. In a lucid and compelling analysis, Arne L. Kalleberg exposes the complex dynamics driving the sharp polarization between 'good jobs' and 'bad jobs' as well as the accompanying decline in employment security that has affected workers at all levels. This is a thoughtful book that is essential reading for anyone interested in understanding the situation of workers in twenty-first- century America."
-RUTH MILKMAN, professor of sociology, CUNY Graduate Center and the Joseph S. Murphy Institute for Worker Education and Labor Studies

The economic boom of the 1990s veiled a grim reality: in addition to the growing gap between rich and poor, the gap between good and bad quality jobs was also expanding. The postwar prosperity of the mid-twentieth century had enabled millions of American workers to join the middle class, but as author Arne L. Kalleberg shows, by the 1970s this upward movement had slowed, in part due to the steady disappearance of secure, well-paying industrial jobs. Ever since, precarious employment has been on the rise—paying low wages, offering few benefits, and with virtually no long-term security. Today, the polarization between workers with higher skill levels and those with low skills and low wages is more entrenched than ever. Good Jobs, Bad Jobs traces this trend to large-scale transformations in the American labor market and the changing demographics of low-wage workers. Kalleberg draws on nearly four decades of survey data, as well as his own research, to evaluate trends in U.S. job quality and suggest ways to improve American labor market practices and social policies.

Good Jobs, Bad Jobs provides an insightful analysis of how and why precarious employment is gaining ground in the labor market and the role these developments have played in the decline of the middle class. Kalleberg shows that by the 1970s, government deregulation, global competition, and the rise of the service sector gained traction, while institutional protections for workers—such as unions and minimum-wage legislation—weakened. Together, these forces marked the end of postwar security for American workers. The composition of the labor force also changed significantly; the number of dual-earner families increased, as did the share of the workforce comprised of women, non-white, and immigrant workers. Of these groups, blacks, Latinos, and immigrants remain concentrated in the most precarious and low-quality jobs, with educational attainment being the leading indicator of who will earn the highest wages and experience the most job security and highest levels of autonomy and control over their jobs and schedules. Kalleberg demonstrates, however, that building a better safety net—increasing government responsibility for worker health care and retirement, as well as strengthening unions—can go a long way toward redressing the effects of today’s volatile labor market.

There is every reason to expect that the growth of precarious jobs—which already make up a significant share of the American job market—will continue. Good Jobs, Bad Jobs deftly shows that the decline in U.S. job quality is not the result of fluctuations in the business cycle, but rather the result of economic restructuring and the disappearance of institutional protections for workers. Only government, employers and labor working together on long-term strategies—including an expanded safety net, strengthened legal protections, and better training opportunities—can help reverse this trend.

ARNE L. KALLEBERG is Kenan Distinguished Professor of Sociology at the University of North Carolina at Chapel Hill.

“This impressive inter-disciplinary study by leading experts is essential reading for anyone who wishes to understand why and how standard employment contracts are declining in advanced industrial societies, and who wants to consider the plausibility of the many new approaches to labour regulation that are emerging.”
—PROFESSOR SIR BOB HEPPLE QC BA, Hon President of the Industrial Law Society

“Few would quarrel with the fact that workplace regulations in the United Sates and other advanced industrialized countries were designed for a workforce and labor market that no longer exist. Yet, it is much less clear what should be put in pace of those outdated regulations. Rethinking Workplace Regulation provides much helpful advice regarding the nature of the problem and innovative solutions. It is a must read.”
—HARRY C. KATZ, Kenneth F. Kahn Dean and Jack Sheinkman Professor, ILR School, Cornell University

During the middle third of the twentieth century, workers in most industrialized countries secured a substantial measure of job security, whether through legislation, contract or social practice. This “standard employment contract,” as it was known, became the foundation of an impressive array of rights and entitlements, including social insurance and pensions, protection against unsociable working conditions, and the right to bargain collectively. Recent changes in technology and the global economy, however, have dramatically eroded this traditional form of employment. Employers now value flexibility over stability, and increasingly hire employees for short-term or temporary work. Many countries have also repealed labor laws, relaxed employee protections, and reduced state-provided benefits. As the old system of worker protection declines, how can labor regulation be improved to protect workers? In Rethinking Workplace Regulation, nineteen leading scholars from ten countries and half a dozen disciplines present a sweeping tour of the latest policy experiments across the world that attempt to balance worker security and the new flexible employment paradigm.

Edited by noted socio-legal scholars Katherine V.W. Stone and Harry Arthurs, Rethinking Workplace Regulation presents case studies on new forms of dispute resolution, job training programs, social insurance and collective representation that could serve as policy models in the contemporary industrialized world. The volume leads with an intriguing set of essays on legal attempts to update the employment contract. For example, Bruno Caruso reports on efforts in the European Union to “constitutionalize” employment and other contracts to better preserve protective principles for workers and to extend their legal impact. The volume then turns to the field of labor relations, where promising regulatory strategies have emerged. Sociologist Jelle Visser offers a fresh assessment of the Dutch version of the ‘flexicurity’ model, which attempts to balance the rise in nonstandard employment with improved social protection by indexing the minimum wage and strengthening rights of access to health insurance, pensions, and training. Sociologist Ida Regalia provides an engaging account of experimental local and regional “pacts” in Italy and France that allow several employers to share temporary workers, thereby providing workers job security within the group rather than with an individual firm. The volume also illustrates the power of governments to influence labor market institutions. Legal scholars John Howe and Michael Rawling discuss Australia's innovative legislation on supply chains that holds companies at the top of the supply chain responsible for employment law violations of their subcontractors. Contributors also analyze ways in which more general social policy is being renegotiated in light of the changing nature of work. Kendra Strauss, a geographer, offers a wide-ranging comparative analysis of pension systems and calls for a new model that offers “flexible pensions for flexible workers.”

With its ambitious scope and broad inquiry, Rethinking Workplace Regulation illustrates the diverse innovations countries have developed to confront the policy challenges created by the changing nature of work. The experiments evaluated in this volume will provide inspiration and instruction for policymakers and advocates seeking to improve worker’s lives in this latest era of global capitalism.

KATHERINE V.W. STONE is Arjay and Frances Fearing Miller Professor of Law at University of California, Los Angeles.

HARRY ARTHURS is former Dean of Osgoode Hall Law School and University Professor Emeritus and President Emeritus of York University.

CONTRIBUTORS: Takashi Araki, Thomas Bredgaard, Cesar G. Canton,  Bruno Caruso,  Consuelo Chacartegui, Alexander J.S. Colvin,  Mark Freedland,  Morley Gunderson,  Thomas Haipeter, John Howe,  Robert Kuttner,  Julia Lopez,  Keisuke Nakamura,  Michio Nitta,  Anthony O'Donnell, Michael Rawling,  Ida Regalia, Kendra Strauss,  Julie C. Suk,  Jelle Visser. 

“This is an extremely interesting book. By now, many of us think we are already familiar with the basic causes of the financial crisis, but Rethinking the Financial Crisis will change our thinking. It is backed by a broad array of carefully researched facts and theoretical structure.”
—ROBERT J. SHILLER , Arthur M. Okun Professor of Economics, Yale University

“As well as its consequences for the economy, the financial crisis has left an indelible mark on the way that economists approach their subject. Our understanding of the crisis is still evolving, but this thought-provoking book provides a welcome opportunity to take stock of how far we have come. The chapters—all written by the leaders in their field— provide a sweeping overview, from the origins of the crisis to its consequences for the economy and the wider lessons to be learned in order not to repeat past mistakes. Rethinking the Financial Crisis is required reading for those who wish to keep up to date on the journey that economics and economists are taking in the wake of the crisis.”
—HYUN SONG SHIN, Hughes-Rogers Professor of Economics, Princeton University

Some economic events are so major and unsettling that they “change everything.” Such is the case with the financial crisis that started in the summer of 2007 and is still a drag on the world economy. Yet enough time has now elapsed for economists to consider questions that run deeper than the usual focus on the immediate causes and consequences of the crisis. How have these stunning events changed our thinking about the role of the financial system in the economy, about the costs and benefits of financial innovation, about the efficiency of financial markets, and about the role the government should play in regulating finance? In Rethinking the Financial Crisis, some of the nation’s most renowned economists share their assessments of particular aspects of the crisis and reconsider the way we think about the financial system and its role in the economy.

In its wide-ranging inquiry into the financial crash, Rethinking the Financial Crisis marshals an impressive collection of rigorous and yet empirically-relevant research that, in some respects, upsets the conventional wisdom about the crisis and also opens up new areas for exploration. Two separate chapters–by Burton G. Malkiel and by Hersh Shefrin and Meir Statman – debate whether the facts of the financial crisis upend the efficient market hypothesis and require a more behavioral account of financial market performance. To build a better bridge between the study of finance and the “real” economy of production and employment, Simon Gilchrist and Egan Zakrasjek take an innovative measure of financial stress and embed it in a model of the U.S. economy to assess how disruptions in financial markets affect economic activity—and how the Federal Reserve might do monetary policy better. The volume also examines the crucial role of financial innovation in the evolution of the pre-crash financial system. Thomas Philippon documents the huge increase in the size of the financial services industry relative to real GDP, and also the increasing cost per financial transaction. He suggests that the finance industry of 1900 was just as able to produce loans, bonds, and stocks as its modern counterpart—and it did so more cheaply. Robert Jarrow looks in detail at some of the major types of exotic securities developed by financial engineers, such as collateralized debt obligations and credit-default swaps, reaching judgments on which make the real economy more efficient and which do not. The volume’s final section turns explicitly to regulatory matters. Robert Litan discusses the political economy of financial regulation before and after the crisis. He reviews the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which he considers an imperfect but useful response to a major breakdown in market and regulatory discipline.

At a time when the financial sector continues to be a source of considerable controversy, Rethinking the Financial Crisis addresses important questions about the complex workings of American finance and shows how the study of economics needs to change to deepen our understanding of the indispensable but risky role that the financial system plays in modern economies.

ALAN S. BLINDER is the Gordon S. Rentschler Memorial Professor of Economics and Public Affairs at Princeton University.

ANDREW W. LO is Charles E. and Susan T. Harris Professor at M.I.T.

ROBERT M. SOLOW is Institute Professor, Emeritus, at M.I.T.

CONTRIBUTORS:  Ben S. Bernanke,  Patrick Bolton,  J. Bradford DeLong,  Christopher L. Foote,  Kristopher S. Gerardi, Simon G. Gilchrist,  John Hull,  Robert A. Jarrow,  Robert E. Litan,  Burton G. Malkiel,  Kevin J. Murphy,  Thomas Philippon,  Tano Santon,  Jose A. Scheinkman, Hersh Shefrin,  Meir Statman,  Alan White,  Paul S. Willen,  Egon Zakrajsek. 

Winner of the 2015 Otis Dudley Duncan Award for Outstanding Scholarship in Social Demography

Winner of the 2015 Inequality, Poverty, and Mobility Outstanding Book Award Presented by the American Sociological Association's Section on Inequality, Poverty, and Mobility

While powerful gender inequalities remain in American society, women have made substantial gains and now largely surpass men in one crucial arena: education. Women now outperform men academically at all levels of school, and are more likely to obtain college degrees and enroll in graduate school. What accounts for this enormous reversal in the gender education gap? In The Rise of Women: The Growing Gender Gap in Education and What It Means for American Schools, Thomas DiPrete and Claudia Buchmann provide a detailed and accessible account of women’s educational advantage and suggest new strategies to improve schooling outcomes for both boys and girls.

The Rise of Women opens with a masterful overview of the broader societal changes that accompanied the change in gender trends in higher education. The rise of egalitarian gender norms and a growing demand for college-educated workers allowed more women to enroll in colleges and universities nationwide. As this shift occurred, women quickly reversed the historical male advantage in education. By 2010, young women in their mid-twenties surpassed their male counterparts in earning college degrees by more than eight percentage points. The authors, however, reveal an important exception: While women have achieved parity in fields such as medicine and the law, they lag far behind men in engineering and physical science degrees. To explain these trends, The Rise of Women charts the performance of boys and girls over the course of their schooling. At each stage in the education process, they consider the gender-specific impact of factors such as families, schools, peers, race and class. Important differences emerge as early as kindergarten, where girls show higher levels of essential learning skills such as persistence and self-control. Girls also derive more intrinsic gratification from performing well on a day-to-day basis, a crucial advantage in the learning process. By contrast, boys must often navigate a conflict between their emerging masculine identity and a strong attachment to school. Families and peers play a crucial role at this juncture. The authors show the gender gap in educational attainment between children in the same families tends to be lower when the father is present and more highly educated. A strong academic climate, both among friends and at home, also tends to erode stereotypes that disconnect academic prowess and a healthy, masculine identity. Similarly, high schools with strong science curricula reduce the power of gender stereotypes concerning science and technology and encourage girls to major in scientific fields.

As the value of a highly skilled workforce continues to grow, The Rise of Women argues that understanding the source and extent of the gender gap in higher education is essential to improving our schools and the economy. With its rigorous data and clear recommendations, this volume illuminates new ground for future education policies and research.

THOMAS A. DIPRETE is professor of sociology at Columbia University.

CLAUDIA BUCHMANN is professor of sociology at Ohio State University.