Despite the rapid creation of jobs in the greater Atlanta region, poverty in the city itself remains surprisingly high, and Atlanta's economic boom has yet to play a significant role in narrowing the gap between the suburban rich and the city poor. This book investigates the key factors underlying this paradox.

The authors show that the legacy of past residential segregation as well as the more recent phenomenon of urban sprawl both work against inner city blacks. Many remain concentrated near traditional black neighborhoods south of the city center and face prohibitive commuting distances now that jobs have migrated to outlying northern suburbs.

The book also presents some promising signs. Few whites still hold overt negative stereotypes of blacks, and both whites and blacks would prefer to live in more integrated neighborhoods. The emergence of a dynamic, black middle class and the success of many black-owned businesses in the area also give the authors reason to hope that racial inequality will not remain entrenched in a city where so much else has changed.

DAVID L. SJOQUIST is professor of economics in the Andrew Young School of Policy Studies at Georgia State University.

CONTRIBUTORS: Ronald H. Bayor, Irene Browne, Obie Clayton Jr., Nikki McIntyre Finlay, Christopher R. Geller, Gary Paul Green, Roger B. Hammer, Truman A. Hartshorn, Cynthia Lucas Hewitt, Keith R. Ihlanfeldt, Sahadeo Patram, Travis Patton, David L. Sjoquist, Mark A. Thompson, and Leann M. Tigges

A Volume in the Multi-City Study of Urban Inequality

Capital of the American Century investigates the remarkable influence that New York City has exercised over the economy, politics, and culture of the nation throughout much of the twentieth century. New York's power base of corporations, banks, law firms, labor unions, artists and intellectuals has played a critical role in shaping areas as varied as American popular culture, the nation's political doctrines, and the international capitalist economy. If the city has lost its unique prominence in recent decades, the decline has been largely—and ironically—a result of the successful dispersion of its cosmopolitan values.

The original essays in Capital of the American Century offer objective and intriguing analyses of New York City as a source of innovation in many domains of American life. Postwar liberalism and modernism were advanced by a Jewish and WASP coalition centered in New York's charitable foundations, communications media, and political organizations, while Wall Street lawyers and bankers played a central role in fashioning national security policies. New York's preeminence as a cultural capital was embodied in literary and social criticism by the "New York intellectuals," in the fine arts by the school of Abstract Expressionism, and in popular culture by Broadway musicals. American business was dominated by New York, where the nation's major banks and financial markets and its largest corporations were headquartered.

In exploring New York's influence, the contributors also assess the larger social and economic conditions that made it possible for a single city to exert such power. New York's decline in recent decades stems not only from its own fiscal crisis, but also from the increased diffusion of industrial, cultural, and political hubs throughout the nation. Yet the city has taken on vital new roles that, on the eve of the twenty-first century, reflect an increasingly global era: it is the center of U.S. foreign trade and the international art market: The New York Times and The Wall Street Journal have emerged as international newspapers; and the city retains a crucial influence in information-intensive sectors such as corporate law, accounting, management consulting, and advertising.

Capital of the American Century provides a fresh link between the study of cities and the analysis of national and international affairs. It is a book that enriches our historical sense of contemporary urban issues and our understanding of modern culture, economy, and politics.

MARTIN SHEFTER is professor of government at Cornell University.

CONTRIBUTORS: James L. Baughman, Paul DiMaggio, Nathan Glazer, Miles Kahler, James R. Kurth, Martin Shefter, David Vogel, and Vera L. Zolberg.

Today, a college education is increasingly viewed as the gateway to the American Dream—a necessary prerequisite for social mobility. Yet recent policy reforms in the United States effectively steer former welfare recipients away from an education that could further their career prospects, forcing them directly into the workforce where they often find only low-paying jobs with little opportunity for growth. In Putting Poor People to Work, Kathleen Shaw, Sara Goldrick-Rab, Christopher Mazzeo, and Jerry A. Jacobs explore this troubling disconnect between the principles of “work-first” and “college for all.”

Using comprehensive interviews with government officials and sophisticated data from six states over a four year period, Putting Poor People to Work shows how recent changes in public policy have reduced the quantity and quality of education and training available to adults with low incomes. The authors analyze how two policies encouraging work—the federal welfare reform law of 1996 and the Workforce Investment Act of 1998—have made moving people off of public assistance as soon as possible, with little regard to their long-term career prospects, a government priority. Putting Poor People to Work shows that since the passage of these “work-first” laws, not only are fewer low-income individuals pursuing postsecondary education, but when they do, they are increasingly directed towards the most ineffective, short-term forms of training, rather than higher-quality college-level education. Moreover, the schools most able and ready to serve poor adults—the community colleges—are deterred by these policies from doing so.

Having a competitive, agile workforce that can compete with any in the world is a national priority. In a global economy where skills are paramount, that goal requires broad popular access to education and training. Putting Poor People to Work shows how current U.S. policy discourages poor Americans from seeking out a college education, stranding them in jobs with little potential for growth. This important new book makes a powerful argument for a shift in national priorities that would encourage the poor to embrace both work and education, rather than having to choose between the two.

KATHLEEN M. SHAW is chair of the Department of Educational Leadership and Policy Studies and associate professor of urban education at Temple University.

SARA GOLDRICK-RAB is assistant professor of educational policy studies and sociology at the University of Wisconsin-Madison, and faculty affiliate of the Wisconsin Center for the Advancement of Postsecondary Education.

CHRISTOPHER MAZZEO is a New York City–based independent consultant.

JERRY A. JACOBS is Merriam Term Professor of Sociology at the University of Pennsylvania and editor of the American Sociological Review.

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

Over the past three decades, average household wealth in the United States has declined among all but the richest families, with a near 80 percent drop among the nation's poorest families. Although the national debate about inequality has focused on income, it is wealth—the private assets amassed and passed on within families—that provides the extra economic cushion needed to move beyond mere day-to-day survival. Assets for the Poor is the first full-scale investigation into the importance of family wealth and the need for policies to encourage asset-building among the poor.

Assets for the Poor shows how institutional mechanisms designed to encourage acquisition of capital and property favor middle-class and high-income families. For example, the aggregate value of home mortgage tax deductions far outweighs the dollar amount of the subsidies provided by Section 8 rental vouchers and public housing. Banking definitions of creditworthiness largely exclude minorities, and welfare rules have made it nearly impossible for single mothers to accumulate savings, let alone stocks or real estate. Due to persistent residential segregation, even those minority families who do own homes are often denied equal access to better schools and public services.

The research in this volume shows that the poor do make use of the assets they have. Cash gifts—although small in size—are frequent within families and often lead to such positive results as homebuying and debt reduction, while tangible assets such as tools and cars help increase employment prospects. Assets for the Poor examines policies such as Individual Development Account tax subsidies to reward financial savings among the poor, and more liberal credit rules to make borrowing easier and less costly. The contributors also offer thoughtful advice for bringing the poor into mainstream savings institutions and warn against developing asset building policies at the expense of existing safety net programs.

Asset-building for low-income families is a powerful idea that offers hope to families searching for a way out of poverty. Assets for the Poor challenges current thinking regarding poverty reduction policies and proposes a major shift in the way we think about families and how they make a better life.

THOMAS M. SHAPIRO is professor of sociology at Northeastern University.

EDWARD N. WOLFF is professor of economics at New York University.

CONTRIBUTORS: Richard V. Burkhauser, John Sibley Butler, Stacie Carney, Dalton Conley, Nancy A. Denton, Kathryn Edin, William G. Gale, Robert Haveman, Lelvin L. Oliver, Laurence S. Seidman, Thomas M. Shapiro, Michael Sherraden, Seymour Spilerman, Mark J. Stern, Robert Weathers, Mark O. Wilhelm, Edward N. Wolff

A Volume in the Ford Foundation Series on Asset Building

Classical economic theory assumes that people in risk situations follow a course of action based on a rational, consistent assessment of likely outcomes. But as Zur Shapira demonstrates in Risk Taking, corporate managers consistently stray from the prescribed path into far more subjective territory. Risk Taking offers a critical assessment of the relationship between theory and action in managerial decision making.

Shapira offers a definitive account of the classical conception of risky decision making, which derives behavioral prescriptions from a calculation of both the value and the likelihood of possible outcomes. He then demonstrates how theories in this vein have been historically at odds with empirical observations. Risk Taking reports the results of an extensive survey of seven hundred managers that probed their attitudes and beliefs about risk and examined how they had actually made decisions in the face of uncertainty. The picture that emerges is of a dynamic, flexible process in which each manager’s personal expertise and perceptions play profound roles.

Managerial strategies are continually modified to suit changing circumstances. Rather than formulating probability estimates, executives create potential scenarios based not only on the possible outcomes but also on the many arbitrary factors inherent in their own situations. As Shapira notes, risk taking propensities vary among managers, and the need to maintain control and avoid particularly dangerous results exercises a powerful influence. Shapira also examines the impact of organizational structure, long-term management objectives, and incentives on decision making.

With perceptive observations of the cognitive, emotional, and organizational dimensions of corporate decision making, Risk Taking propels the study of managerial risk behavior into new directions. This volume signals the way toward improving managerial decision making by revealing the need for more inclusive choice models that augment classical theory with vital behavioral observations.

ZUR SHAPIRA is research professor of management and organizational behavior at the Stern School of Business at New York University.

The United States spends billions of dollars annually on social and economic policies aimed at improving the lives of its citizens, but the health consequences associated with these policies are rarely considered. In Making Americans Healthier, a group of multidisciplinary experts shows how social and economic policies seemingly unrelated to medical well-being have dramatic consequences for the health of the American people.

Most previous research concerning problems with health and healthcare in the United States has focused narrowly on issues of medical care and insurance coverage, but Making Americans Healthier demonstrates the important health consequences that policymakers overlook in traditional cost-benefit evaluations of social policy. The contributors examine six critical policy areas: civil rights, education, income support, employment, welfare, and neighborhood and housing. Among the important findings in this book, David Cutler and Adriana Lleras-Muney document the robust relationship between educational attainment and health, and estimate that the health benefits of education may exceed even the well-documented financial returns of education. Pamela Herd, James House, and Robert Schoeni discover notable health benefits associated with the Supplemental Security Income Program, which provides financial support for elderly and disabled Americans. George Kaplan, Nalini Ranjit, and Sarah Burgard document a large and unanticipated improvement in the health of African-American women following the enactment of civil rights legislation in the 1960s.

Making Americans Healthier presents ground-breaking evidence that the health impact of many social policies is substantial. The important findings in this book pave the way for promising new avenues for intervention and convincingly demonstrate that ultimately social and economic policy is health policy.
 

ROBERT F. SCHOENI is professor of public policy and economics, the University of Michigan.

JAMES S. HOUSE is Angus Campbell Collegiate Professor of Sociology and Survey Research, the University of Michigan.

GEORGE A. KAPLAN is the Thomas Francis Collegiate Professor of Public Health, the University of Michigan.

HAROLD POLLACK is associate professor of social service administration, University of Chicago.

CONTRIBUTORS: Marianne P. Bitler, Jeanne Brooks-Gunn, Sarah A. Burgard, Janet Currie, David M. Cutler, Rebecca C. Fauth, Irv Garfinkel. Ben B. Hansen, Pamela Herd, Hilary Hoynes, Daniel Keating, Jean Knab, Adriana Lleras-Muney, Sara McLanahan, Jeffrey D. Morenoff, Enrico Moretti, Theresa L. Osypuk, Richard H. Price,  Nalini Ranjit, Ana V. Diez Roux, Christopher J. Ruhm, Sharon Z. Simonton.

A Volume in the National Poverty Center Series on Poverty and Public Policy

The Dutch economy has often been heralded for accomplishing solid employment growth within a generous welfare system. In recent years, the Netherlands has seen a rise in low-wage work and has maintained one of the lowest unemployment rates in the European Union. Low-Wage Work in the Netherlands narrows in on the causes and consequences of this new development. The authors find that the increase in low-wage work can be partly attributed to a steep rise in the number of part-time jobs and non-standard work contracts—46 percent of Dutch workers hold part-time jobs. The decline in full-time work has challenged historically powerful Dutch unions and has led to a slow but steady dismantling of many social insurance programs from 1979 onward. At the same time, there are hopeful lessons to be gleaned from the Dutch model: low-wage workers benefit from a well-developed system of income transfers, and many move on to higher paying jobs. Low-Wage Work in the Netherlands paints a nuanced picture of the Dutch economy by analyzing institutions that both support and challenge its low-wage workforce.

WIEMER SALVERDA is director of the Amsterdam Institute for Advanced Labour Studies.

MAARTEN VAN KLAVEREN is researcher and consultant at STZ Consultancy and Research.

MARC VAN DER MEER is director of studies at the Amsterdam Institute for Advanced Labour Studies.

CONTRIBUTORS: Ria Hermanussen, Robert Solow, Wim Sprenger, Kea Tijdens, Arjen Van Halem. 

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

Neighborhood support groups have always played a key role in helping the poor survive, but combating poverty requires more than simply meeting the needs of day-to-day subsistence. Social Capital and Poor Communities shows the significant achievements that can be made through collective strategies, which empower the poor to become active partners in revitalizing their neighborhoods. Trust and cooperation among residents and local organizations such as churches, small businesses, and unions form the basis of social capital, which provides access to resources that would otherwise be out of reach to poor families.

Social Capital and Poor Communities examines civic initiatives that have built affordable housing, fostered small businesses, promoted neighborhood safety, and increased political participation. At the core of each initiative lie local institutions—church congregations, parent-teacher groups, tenant associations, and community improvement alliances. The contributors explore how such groups build networks of leaders and followers and how the social power they cultivate can be successfully transferred from smaller goals to broader political advocacy. For example, community-based groups often become platforms for leaders hoping to run for local office. Church-based groups and interfaith organizations can lobby for affordable housing, job training programs, and school improvement.

Social Capital and Poor Communities convincingly demonstrates why building social capital is so important in enabling the poor to seek greater access to financial resources and public services. As the contributors make clear, this task is neither automatic nor easy. The book's frank discussions of both successes and failures illustrate the pitfalls—conflicts of interest, resistance from power elites, and racial exclusion—that can threaten even the most promising initiatives. The impressive evidence in this volume offers valuable insights into how goal formation, leadership, and cooperation can be effectively cultivated, resulting in a remarkable force for change and a rich public life even for those communities mired in seemingly hopeless poverty.

SUSAN SAEGERT is professor of environmental psychology at the Graduate Center, City University of New York.

J. PHILLIP THOMPSON is Associate Professor in American politics, Columbia University.

MARK R. WARREN is associate professor in the Graduate School of Education at Harvard University.

CONTRIBUTORS:  Mark Chaves,  Cathy J. Cohen,  Cynthia M. Duncan,  Michael Foley,  Ross Gittell,  Sherman A. James,  Langley C. Keyes,  Margaret Levi,  M. Lisette Lopez,  John D. McCarthy, Lorraine C. Minnite,  Pedro A. Noguera,  Melvin L. Oliver,  Robert Putnam,  Robert J. Sampson,  Amy Schulz,  Robert Y. Shapiro,  Carol B. Stack,  Juliana van Olphen.

A Volume in the Ford Foundation Series on Asset Building

Access to capital and financial services is crucial for healthy communities.  However, many impoverished individuals and neighborhoods are routinely ignored by mainstream financial institutions.  This neglect led to the creation of community development financial institutions (CDFIs), which provide low-income communities with financial services and act as a conduit to conventional financial organizations and capital markets. Edited by Julia Sass Rubin, Financing Low-Income Communities brings together leading experts in the field to assess what we know about the challenges of bringing financial services and capital to poor communities, map out future lines of research, and propose policy reforms to make these efforts more effective.

The contributors to Financing Low-Income Communities distill research on key topics related to community development finance. Daniel Schneider and Peter Tufano examine the obstacles that make saving and asset accumulation difficult for low-income households—such as the fact that tens of millions of low-income and minority adults don’t have a bank account—and consider solutions, like making it easier for low-wage workers to enroll in 401(K) plans. Jeanne Hogarth, Jane Kolodinksy, and Marianne Hilgert review evidence showing that community-based financial education programs can be effective in changing families’ saving and budgeting patterns.  Lisa Servon proposes strategies for addressing the challenges facing the microenterprise field in the United States.  Julia Sass Rubin discusses ways community loan and venture capital funds have adapted in response to the decreased availability of funding, and considers potential sources of new capital, such as state governments and public pension funds.  Marva Williams explores the evolution and recent performance of community development banks and credit unions.  Kathleen Engel and Patricia McCoy document the proliferation of predatory lenders, who market loans at onerous interest rates to financially vulnerable families and the devastating effects of such lending on communities—from increased crime to falling home values and lower tax revenues. Rachel Bratt reviews the policies and programs used to make rental and owned housing financially accessible.  Rob Hollister proposes a framework for evaluating the contributions of community development financial institutions.

Despite the many accomplishments of CDFIs over the last four decades, changing political and economic conditions make it imperative that they adapt in order to survive.  Financing Low-Income Communities charts out new directions for public and private organizations which aim to end the financial exclusion of marginalized neighborhoods.

JULIA SASS RUBIN is assistant professor at the Edward J. Bloustein School of Planning and Public Policy at Rutgers University.

CONTRIBUTORS: Julia Sass Rubin, Rachel G. Bratt, Kathleen C. Engel, Marianne A. Hilgert, Jeanne M. Hogarth, Robinson Hollister, Jane Kolodinsky, Patricia A. McCoy, Daniel Schneider, Lisa Servon, Peter Tufano, and Marva E. Williams.

Shows what happens when a specific social policy is tried out on an experimental basis prior to being enacted into law. By providing a trial of a variety of negative income tax plans carried out over a three-year period in four communities, the New Jersey-Pennsylvania Income Maintenance Experiment was designed to observe whether income maintenance would lead to reduced work effort on the part of those who received subsidies. This book evaluates the final project reports on the experiment issued by Mathematica, Inc. and the Institute for Research on Poverty at the University of Wisconsin.

PETER H. ROSSI is professor of sociology and director of the Social and Demographic Research Institute at the University of Massachusetts, Amherst.

KATHARINE C. LYALL is assistant professor of political economy and senior research associate at the Center for Metropolitan Planning and Research, Johns Hopkins University.

A publication in the Continuities in Evaluation Research series.