Winner of the 1997 Thomas and Znaniecki Award from the International Migration Section of the American Sociological Association

Since 1965 more immigrants have come to Los Angeles than anywhere else in the United States. These newcomers have rapidly and profoundly transformed the city's ethnic makeup and sparked heated debate over their impact on the region's troubled economy. Ethnic Los Angeles presents a multi-investigator study of L.A.'s immigrant population, exploring the scope, characteristics, and consequences of ethnic transition in the nation's second most populous urban center.

Using the wealth of information contained in the U.S. censuses of 1970, 1980, and 1990, essays on each of L.A.'s major ethnic groups tell who the immigrants are, where they come from, the skills they bring and their sources of employment, and the nature of their families and social networks. The contributors explain the history of legislation and economic change that made the city a magnet for immigration, and compare the progress of new immigrants to those of previous eras. Recent immigrants to Los Angeles follow no uniform course of adaptation, nor do they simply assimilate into the mainstream society. Instead, they have entered into distinct niches at both the high and low ends of the economic spectrum. While Asians and Middle Easterners have thrived within the medical and technical professions, low-skill newcomers from Central America provide cheap labor in light manufacturing industries.

As Ethnic Los Angeles makes clear, the city's future will depend both on how well its economy accommodates its diverse population, and on how that population adapts to economic changes. The more prosperous immigrants arrived already possessed of advanced educations and skills, but what does the future hold for less-skilled newcomers? Will their children be able to advance socially and economically, as the children of previous immigrants once did? The contributors examine the effect of racial discrimination, both in favoring low-skilled immigrant job seekers over African Americans, and in preventing the more successful immigrants and native-born ethnic groups from achieving full economic parity with whites.

Ethnic Los Angeles is an illuminating portrait of a city whose unprecedented changes are sure to be replicated in other urban areas as new concentrations of immigrants develop. Backed by detailed demographic information and insightful analyses, this volume engages all of the issues that are central to today's debates about immigration, ethnicity, and economic opportunity in a post-industrial urban society.

ROGER WALDINGER is professor of sociology and acting director of the Lewis Center for Regional Policy Studies, University of California, Los Angeles.

MEHDI BOZORGMEHR is assistant professor of sociology at City College, City University of New York.

CONTRIBUTORS
Lucie C. Cheng, William A. V. Clark, Claudia DeMartirosian, David Grant, Angela James, John Laslett, Michael Lichter, Ivan Light, David Lopez, Ali Modarres, Melvin Oliver, Paul Ong, Vilma Ortiz, Eric Popkin, Betsy Roach, Georges Sabagh, Allen J. Scott, Edward Telles, Abel Valenzuela, Philip Yang

Philosophers have long tussled over whether moral judgments are the products of logical reasoning or simply emotional reactions. From Jane Austen’s Sense and Sensibility to the debates of modern psychologists, the question of whether feeling or sober rationality is the better guide to decision making has been a source of controversy. In Do Emotions Help or Hurt Decision Making? Kathleen Vohs, Roy Baumeister, and George Loewenstein lead a group of prominent psychologists and economists in exploring the empirical evidence on how emotions shape judgments and choices.

Researchers on emotion and cognition have staked out many extreme positions: viewing emotions as either the driving force behind cognition or its side effect, either an impediment to sound judgment or a guide to wise decisions. The contributors to Do Emotions Help or Hurt Decision Making? provide a richer perspective, exploring the circumstances that shape whether emotions play a harmful or helpful role in decisions. Roy Baumeister, C. Nathan DeWall, and Liqing Zhang show that while an individual’s current emotional state can lead to hasty decisions and self-destructive behavior, anticipating future emotional outcomes can be a helpful guide to making sensible decisions. Eduardo Andrade and Joel Cohen find that a positive mood can negatively affect people’s willingness to act altruistically. Happy people, when made aware of risks associated with altruistic acts, become wary of jeopardizing their own well-being. Benoît Monin, David Pizarro, and Jennifer Beer find that whether emotion or reason matters more in moral evaluation depends on the specific issue in question. Individual characteristics often mediate the effect of emotions on decisions. Catherine Rawn, Nicole Mead, Peter Kerkhof, and Kathleen Vohs find that whether an individual makes a decision based on emotion depends both on the type of decision in question and the individual’s level of self-esteem. And Quinn Kennedy and Mara Mather show that the elderly are better able to regulate their emotions, having learned from experience to anticipate the emotional consequences of their behavior.

Do Emotions Help or Hurt Decision Making? represents a significant advance toward a comprehensive theory of emotions and cognition that accounts for the nuances of the mental processes involved. This landmark book will be a stimulus to scholarly debates as well as an informative guide to everyday decisions.

KATHLEEN D. VOHS is the McKnight Land-Grant Professor and assistant professor in the Carlson School of Management at the University of Minnesota.

ROY F. BAUMEISTER is the Francis Eppes Eminent Scholar and professor of psychology at Florida State University.

GEORGE LOEWENSTEIN is the Herbert A. Simon Professor of Economics and Psychology at Carnegie Mellon University.

CONTRIBUTORS: Christopher J. Anderson, Eduardo B. Andrade, Roy F. Baumeister, Jennifer S. Beer, Joel B. Cohen, C. Nathan DeWall, Matthew T. Gailliot, Karen Gasper, Lorenz Goette, David Huffman, Linda M. Isbell, Quinn Kennedy, Peter Kerkhof, Jonathan Levav, Debra Lieberman, George Loewenstein, Mara Mather, Nicole L. Mead, Benoît Monin, Robert Oum, David A. Pizarro, Catherine D. Rawn, Dianne M. Tice, Jennifer L. Trujillo, Kathleen D. Vohs, Piotr Winkielman, John M. Zelenski, and Liqing Zhang
 

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.

Modern financial markets offer the real world's best approximation to the idealized price auction market envisioned in economic theory. Nevertheless, as the increasingly exquisite and detailed financial data demonstrate, financial markets often fail to behave as they should if trading were truly dominated by the fully rational investors that populate financial theories.

These markets anomalies have spawned a new approach to finance, one which as editor Richard Thaler puts it, "entertains the possibility that some agents in the economy behave less than fully rationally some of the time." Advances in Behavioral Finance collects together twenty-one recent articles that illustrate the power of this approach. These papers demonstrate how specific departures from fully rational decision making by individual market agents can provide explanations of otherwise puzzling market phenomena.

To take several examples, Werner De Bondt and Thaler find an explanation for superior price performance of firms with poor recent earnings histories in the tendencies of investors to overreact to recent information. Richard Roll traces the negative effects of corporate takeovers on the stock prices of the acquiring firms to the overconfidence of managers, who fail to recognize the contributions of chance to their past successes. Andrei Shleifer and Robert Vishny show how the difficulty of establishing a reliable reputation for correctly assessing the value of long term capital projects can lead investment analysis, and hence corporate managers, to focus myopically on short term returns.

As a testing ground for assessing the empirical accuracy of behavioral theories, the successful studies in this landmark collection reach beyond the world of finance to suggest, very powerfully, the importance of pursuing behavioral approaches to other areas of economic life. Advances in Behavioral Finance is a solid beachhead for behavioral work in the financial arena and a clear promise of wider application for behavioral economics in the future.

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.

CONTRIBUTORS: Lawrence M. Ausubel, Victor L. Bernard, Fischer Black, Navin Chopra, David M. Cutler, Werner F. M. De Bondt, J. Bradford De Long, Jeffrey A. Frankel, Kenneth R. French, Kenneth A. Froot, Josef Lakonishok, Charles M. C. Lee, James M. Poterba, Jay R. Ritter, Richard Roll, Hersh M. Shefrin, Robert J. Shiller, Andrei Shleifer, Meir Statman, Jeremy Stein, Lawrence H. Summers, Richard H. Thaler, Robert W. Vishny, and Robert J. Waldmann

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.

Since the mid-1980s, as public discourse has focused increasingly on the troubled economy, many social scientists have argued the need for more analysis of the social relationships that undergird economic life. The original essays in Explorations in Economic Sociology represent the most important work in this renewed field and employ a rich variety of research methods—theoretical, ethnographic, and historical—to illustrate its key concerns.

Explorations in Economic Sociology forges innovative social theories of such economic institutions as money, markets, and industry. Although traditional economists have identified markets as driven solely by the forces of supply and demand, social factors frequently intervene. Sales at auction are determined not simply by a seller's personal knowledge of customers. Shareholder attitudes and employee organization influence everything from the way firms borrow money to the way corporate performance is measured. Firms themselves operate in social networks in which trust is a crucial factor in settling the terms for cooperation or competition.

Throughout the essays in this volume, the contributors point the way to developing a more healthy economy by fostering productive industrial networks, avoiding disintegration at management levels, and anticipating the consequences of the shift from manufacturing to service industries. Explorations in Economic Sociology is a pioneering work that bridges the gap between social theory and economic analysis and demonstrates the importance of this union in achieving an effective understanding of economic issues. The book should stimulate new interest in economic sociology by bringing together many of its most fundamental voices.

RICHARD SWEDBERG is professor of sociology at the University of Stockholm.

CONTRIBUTORS: Ronald S. Burt, Mark Granovetter, Paul M. Hirsch, Mark Lazerson, Patrick McGuire, Marshall W. Meyer, Mark S. Mizruchi, Charles Perrow, Frank Romo, Charles F. Sabel, Michael Schwartz, Charles W. Smith, Linda Brewster Stearns, Richard Swedberg, Michael Useem, Harrison C. White, and Viviana A. Zelizer

America's current system of health insurance, which relies almost exclusively on employer-sponsored coverage, is in danger of collapse, and this problem is not limited to the poor and working class. An increasing number of middle class Americans do not have employer-provided insurance and—due to skyrocketing premiums—cannot afford to purchase coverage for themselves. Reinsuring Health, by economist Katherine Swartz, examines this growing national crisis and outlines a concrete plan to make health insurance accessible and affordable for all Americans.

Reinsuring Health documents why the number of uninsured Americans—now 45.5 million people—has grown in the last twenty-five years. Swartz focuses on how labor market changes—such as the decline of domestic manufacturing, decreased unionization, and the growth of non-standard work arrangements—have led U.S. employers to retreat from providing health insurance for their workers. These trends, combined with the increasing costs of medical care, have led to an explosion in health insurance premiums and a decline in coverage, particularly among the middle-class. Since those who seek insurance as individuals are generally most likely to need health care, private insurers charge higher premiums in the individual (non-group) markets than to people who obtain group insurance. This makes individual health insurance less attractive to the young and increasingly unaffordable for middle-class Americans. Similarly, insurers charge higher per person (or per family) premiums to small firms than to large companies, so many small firms do not sponsor coverage for their employees. Reinsuring Health shows how these problems can be overcome if the federal government provides a new reinsurance program which would protect insurance companies that provide small group and individual health insurance against the possibility that their policy-holders will incur very high medical expenses. By assuming some of the risk that people will face extremely costly medical bills, the government will make insurers less hesitant to offer coverage to high-risk individuals, and will help drive down premiums for others. Reinsuring Health demonstrates that this form of government reinsurance has worked in the past, helping to establish smooth running private markets for catastrophe insurance and secondary mortgages.

Today, growing numbers of middle class Americans lack health insurance. Protection against the possibility of falling ill or getting hurt and having to pay extraordinary health care bills should not be a luxury available only to the very rich and the very poor. Reinsuring Health proposes a straightforward solution that would bring health insurance back within the reach of the increasing ranks of the uninsured, particularly those who are in the middle class.

KATHERINE SWARTZ is professor of health policy and management at the School of Public Health, Harvard University

Two sociologists and a lawyer examine here the attitudes of both survivors and attorney on various problems surrounding inheritance—from will-making through estate settlement. Within a legal frame of reference, this book is a study of what happens within a family at death—and why. The authors use the "inheritance unit" as the basis for looking at the functions of inheritance in intergenerational family continuity and the general patterns of family relationship.

MARVIN B. SUSSMAN is professor and chairman of the Department of Sociology at Case Western Reserve University.

JUDITH N. CATES is research associate of the American Psychological Association.

DAVID T. SMITH is professor of law at the University of Florida.

Provides a directory of the rapidly expanding philanthropic foundations in Latin America, identifying over 750 foundations and presenting detailed information on 364 of them. In addition, the directory contains an introduction that analyzes historical data on Latin American foundations, a country-by-country summary of legal processes regarding foundations and pertinent tax laws, two essays by North and South American foundation presidents discussing the organization and management of private foundations, and an appendix with models of bylaws and financial statements of Latin American foundations.

ANN STROMBERG has participated in various community development projects in Latin America, taught in Latin American schools, and engaged in other sociological research projects. She is at the Pan American Development Foundation.

Over the past three decades, the contours of American social, economic, and political life have changed dramatically. The post-war patterns of broadly distributed economic growth have given way to stark inequalities of income and wealth, the GOP and its allies have gained power and shifted U.S. politics rightward, and the role of government in the lives of Americans has changed fundamentally. Remaking America explores how these trends are related, investigating the complex interactions of economics, politics, and public policy.

Remaking America explains how the broad restructuring of government policy has both reflected and propelled major shifts in the character of inequality and democracy in the United States. The contributors explore how recent political and policy changes affect not just the social standing of Americans but also the character of democratic citizenship in the United States today. Lawrence Jacobs shows how partisan politics, public opinion, and interest groups have shaped the evolution of Medicare, but also how Medicare itself restructured health politics in America. Kimberly Morgan explains how highly visible tax policies created an opportunity for conservatives to lead a grassroots tax revolt that ultimately eroded of the revenues needed for social-welfare programs. Deborah Stone explores how new policies have redefined participation in the labor force—as opposed to fulfilling family or civic obligations—as the central criterion of citizenship. Frances Fox Piven explains how low-income women remain creative and vital political actors in an era in which welfare programs increasingly subject them to stringent behavioral requirements and monitoring. Joshua Guetzkow and Bruce Western document the rise of mass incarceration in America and illuminate its unhealthy effects on state social-policy efforts and the civic status of African-American men.

For many disadvantaged Americans who used to look to government as a source of opportunity and security, the state has become increasingly paternalistic and punitive. Far from standing alone, their experience reflects a broader set of political victories and policy revolutions that have fundamentally altered American democracy and society. Empirically grounded and theoretically informed, Remaking America connects the dots to provide insight into the remarkable social and political changes of the last three decades.

JOE SOSS is the Cowles Professor for the Study of Public Service at the Hubert H. Humphrey Institute of Public Affairs, University of Minnesota.

JACOB S. HACKER is professor of political science at Yale University and resident fellow of the Institution for Social and Policy Studies.

SUZANNE METTLER is Clinton Rossiter Professor of American Institutions in the Government Department at Cornell University.

CONTRIBUTORS:  Andrea Louise Campbell, Richard B. Freeman, Joshua Guetzkow, Jennifer Hochschild,  Helen Ingram,  Lawrence R. Jacobs,  R. Shep Melnick,  Kimberly J. Morgan,  Frances Fox Pivens,  Paul Pierson,  Joel Rogers,  Sanford F. Schram,  Deborah Stone,  Vasla Weaver,  Bruce Western.