"In the 'war of the models' between variants of capitalism, the Dutch economy has had good and bad publicity. There is the 'Dutch disease' that prices manufacturing out of some markets and criticisms of Dutch collective bargaining as being insufficiently centralized or decentralized. There is also much ballyhoo about the virtues of the Polder model and Dutch economic planning. By examining how the Dutch have dealt with less skilled and low-wage work, Low-Wage Work in the Netherlands illuminates how the Dutch system operates to deal with a problem that affects all economies. The depth of discussion of specific industries and workers offers more insight into how the Dutch do it than the broad generalizations that abound in analyses of the varying capitalist models."
-RICHARD B. FREEMAN, Herbert Ascherman Chair in Economics, Harvard University and Senior Research Fellow in Labour Markets, London School of Economics

"A lot has been written about the so-called Polder model, the Dutch model of consensus building, to which many of its economic successes of the 1990s have been attributed. However, little attention has been paid to the downside of this success: the strong growth of low-wage employment. This volume fills the gap by giving extensive consideration to the bottom segment of the labor market. It is unique in discussing and analyzing low-wage work at the national level as well as at the industry and the company level. It convincingly demonstrates how strong job growth may have the price of erosion of income security and job quality at the lower end of the labor market. Reading Low-Wage Work in the Netherlands is indispensable for everyone who wants to know how the Dutch Polder model really works."
-PAUL DE BEER, Henri Polak Professor of Industrial Relations, University of Amsterdam

"Any student of the low-wage labor market must at some point answer several questions. How much can institutional differences affect the strategies that firms adopt? How, in turn, can these strategies affect outcomes for low-wage workers? Is it possible to create a high road environment for low-skill employment? This fascinating study provides an in-depth analysis that helps answer such questions in industries familiar to all labor market researchers-retail, hotels, health care, call centers, and food-in the context of the 'Dutch model.' The authors weave rich case study information together with statistical data to provide a vivid tapestry of work conditions under the 'Dutch model.' Both their findings and their careful analytic approach make Low-Wage Work in the Netherlands a must read for serious labor market researchers."
-JULIA I. LANE, senior vice president, National Opinion Research Center, University of Chicago

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

"This book represents a step in the right direction by making important distinctions among types of social capital. Moreover, it addresses how social capital can be generated and used to combat poverty and promote social justice. By providing direction for policy and community practice, research, and teaching, this volume will be a useful addition to many courses and bookshelves."
-Journal of Community Practice

"A landmark accomplishment on three fronts: the evolution of social capital scholarship, our understanding of the causes and consequences of 'true disadvantage,' and our knowledge of effective approaches to working with poor communities. Deftly integrating the practical applications of theory and the theoretical implications of hard-won lessons from the field, this volume showcases the work of America's finest thinkers and doers in the rapidly expanding social capital universe. In conjunction with related work on poverty in low income countries, these U.S. cases powerfully demonstrate that a focus on building up the social, economic, and political assets-rather than harping on the 'deficits'-of poor communities can rest on rigorous conceptual and empirical foundations, and provide a coherent framework for informed policy and project recommendations. Too many books are labeled 'required reading,' but whether you're a new or seasoned reader of the social capital literature, this volume belongs at the top of the list."
-Michael Woolcock, World Bank and Harvard University

"Social Capital and Poor Communities shows why community building is critical to improving the lives of families in low-income communities, and offers fresh ideas for mobilizing social resources to improve housing, education, health, public safety, and economic development. This important book tackles tough questions about how community organizations can act effectively together, the importance of leadership development and institution-building, and the challenges of working in policy and political arenas. Bringing the latest in social science research together with the results of practical efforts to combat poverty, this volume is must reading for policymakers, practitioners, and all those concerned about justice and equity in America."
-Angela Glover Blackwell, PolicyLink

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

"Financing Low-Income Communities fills a significant gap in the literature on community development. While much has been written about organizational and political issues, relatively few works explain how to finance activities at the neighborhood level. By definition, low-income communities lack assets. This book is a guide for practitioners and a contribution to scholarship concerning best practices in raising the funds necessary to bring projects to fruition."
-Susan S. Fainstein, Harvard University Graduate School of Design

"Financing Low-Income Communities is a most timely examination of the most critical financial services issues of our day by leading scholars and activists. In exploring the behavior of individuals and their families, the practices of financial institutions, and the policies of regulatory and legislative bodies it maps out directions for steering investment to traditionally underserved communities."
-Gregory D. Squires, George Washington University

"Financing Low-Income Communities is necessary reading for public and private sector leaders addressing the challenges of bringing financial services and capital to poor communities. Leading experts provide critical insights into ways institutions can best serve low income communities, key metrics for evaluating community development programs and policy reforms to overcome the financial exclusion of marginalized neighborhoods."
-Susan M. Wachter, University of Pennsylvania

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.

"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

"Though economists claim that dollar bills will not be left 'lying in the street,' the profits from sharply focused exchange between sociologists and economists are rarely taken. This sparkling volume is a welcome exception. Prominent practitioners of both arts present important work on networks and markets, and critique one another in concise and fruitful ways. An invaluable resource for those who follow these exciting new developments in social theory."
- MARK GRANOVETTER, Stanford University

"A pioneering collaboration between economists and sociologists. The contributors compete and cooperate with each other, combining the best traditions of the two fields, to elucidate the organization of industrial economies in East Asia, fish markets in Marseille, banking in renaissance Florence, ethnic business networks in New York, and much else."
- DANI RODRIK, Harvard University

"After a century of separation, economics and other social sciences are reestablishing mutually beneficial links. These studies of the interaction between social networks and markets are an excellent case in point. Here, a dozen sociologists and economists bring together their skills in case studies and theoretical modeling to create a rich and fascinating collection that will inspire much further research."
-AVINASH K. DIXIT, Princeton University

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.

"In an instance of supreme irony, economists and sociologists studying networks have traditionally conducted their researches in largely unconnected components, each with its own questions, methods, and citation clusters. The Missing Links indeed provides the missing links between the two literatures. In the jargon of the subject, it bridges a structural hole. Much intellectual traffic will flow across this bridge in the future."
-AVINASH DIXIT, John J. F. Sherrerd '52 University Professor of Economics, Princeton University

"The contemporary study of social networks represents one of the most exciting endeavors in social science and constitutes a remarkable integration of ideas from economics and sociology. The Missing Links brings together many of the most important thinkers on social networks to produce a valuable overview of the state of the field. This book will be of great value to students as well as researchers. Editor James Rauch, who has made a number of seminal contributions to social network research, deserves congratulations for assembling such a fine collection of essays."
-STEVEN N. DURLAUF, Kenneth J. Arrow Professor of Economics, University of Wisconsin, Madison

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.

"Do Prisons Make Us Safer? is an important volume. Steven Raphael and Michael A. Stoll have brought together some of the best researchers in the country to address a crucial question: Does the marginal crime reduction benefit of increased incarceration outweigh its social and economic costs to society? The compelling findings are extremely thought provoking and the policy implications are profound. I very strongly recommend this timely publication."
-William Julius Wilson, Lewis P. and Linda L. Geyser University Professor. Harvard University

"This ambitious book tackles one of the most far-reaching phenomena of the modern American era, the relentless growth of our nation's prison population. Each chapter is a gem, shedding new light on the complex interactions between our prisons and our society. In the future, no serious assessment of our incarceration policies will be complete without reference to this ground-breaking scholarship."
-Jeremy Travis, president, John Jay College of Criminal Justice, The City University of New York

The number of people incarcerated in U.S. prisons and jails more than quadrupled between 1975 and 2005, reaching the unprecedented level of over two million inmates today. Annual corrections spending now exceeds 64 billion dollars, and many of the social and economic burdens resulting from mass incarceration fall disproportionately on minority communities. Yet crime rates across the country have also dropped considerably during this time period. In Do Prisons Make Us Safer? leading experts systematically examine the complex repercussions of the massive surge in our nation’s prison system.

Do Prisons Make Us Safer? asks whether it makes sense to maintain such a large and costly prison system. The contributors expand the scope of previous analyses to include a number of underexplored dimensions, such as the fiscal impact on states, effects on children, and employment prospects for former inmates. Steven Raphael and Michael Stoll assess the reasons behind the explosion in incarceration rates and find that criminal behavior itself accounts for only a small fraction of the prison boom. Eighty-five percent of the trend can be attributed to “get tough on crime” policies that have increased both the likelihood of a prison sentence and the length of time served. Shawn Bushway shows that while prison time effectively deters and incapacitates criminals in the short term, long-term benefits such as overall crime reduction or individual rehabilitation are less clear cut. Amy Lerman conducts a novel investigation into the effects of imprisonment on criminal psychology and uncovers striking evidence that placement in a high security penitentiary leads to increased rates of violence and anger—particularly in the case of first time or minor offenders. Rucker Johnson documents the spill-over effects of parental incarceration—children who have had a parent serve prison time exhibit more behavioral problems than their peers. Policies to enhance the well-being of these children are essential to breaking a devastating cycle of poverty, unemployment, and crime. John Donohue’s economic calculations suggest that alternative social welfare policies such as education and employment programs for at-risk youth may lower crime just as effectively as prisons, but at a much lower human cost. The cost of hiring a new teacher is roughly equal to the cost of incarcerating an additional inmate.

The United States currently imprisons a greater proportion of its citizens than any other nation in the world. Until now, however, we’ve lacked systematic and comprehensive data on how this prison boom has affected families, communities, and our nation as a whole. Do Prisons Make Us Safer? provides a highly nuanced and deeply engaging account of one of the most dramatic policy developments in recent U.S. history.

STEVEN RAPHAEL is professor of public policy at the University of California, Berkeley.

MICHAEL A. STOLL is professor and chair of public policy in the School of Public Affairs, University of California, Los Angeles.

CONTRIBUTORS: Shawn D. Bushway, John J. Donohue III, John W. Ellwood, Joshua Guetzkow, Harry J. Holzer, Rucker C. Johnson, Amy E. Lerman, Raymond Paternoster, Steven Raphael, Michael A. Stoll, David F. Weiman, and Christopher Weiss

"For twenty years, Lee Rainwater and Timothy Smeeding have developed and enhanced the Luxembourg Income Study to provide comparable data on living standards in industrialized economies. In Poor Kids in a Rich Country, they document that the relative rate of child poverty depends more on how a government regulates the labor market and provides social benefits to those who fare badly in the market than on that country's overall standard of living. They show, that even though average real income in the United States is well-above that of most countries, low-income American children have fewer material resources than their counterparts in ten of fourteen comparison countries. Poor Kids in a Rich Country is the best source for detailed information on variations in living standards across industrialized countries; it should be read by anyone interested in understanding how income poverty is measured and how differences can be interpreted."
-SHELDON DANZIGER, Henry J. Meyer Collegiate Professor of Public Policy, Gerald R. Ford School of Public Policy, University of Michigan

"Poor Kids in a Rich Country easily reaffirms Lee Rainwater's and Timothy Smeeding's reputation as the leading international poverty researchers. With unrelenting scientific rigor, they tackle a great paradox of our times, namely that the world's richest nation produces more child poverty than any other advanced country. The mass of evidence they assemble points to one set of overwhelming and, alas, bleak conclusions. The United States performs badly indeed, with one-fifth of its children living in poverty, and the situation is actually worsening. Equally worrisome is the finding that American children are less likely to escape from poverty. Upon reading this book one begins to wonder whether a country with so many underprivileged children can sustain its economic leadership much further into the future."
-GØSTA ESPING-ANDERSEN, professor of sociology and university dean, Universitat Pompeu Fabra, Barcelona

"Lee Rainwater and Timothy Smeeding have given us a wonderful gift. Poor Kids in a Rich Country is smart, readable, and attentive to the important questions. Researchers and students of child poverty will long be in their debt."
-SARA MCLANAHAN, professor of sociology and public affairs and director of the Bendheim-Thoman Center for Research on Child Wellbeing, Princeton University

In Poor Kids in a Rich Country, Lee Rainwater and Timothy Smeeding ask what it means to be poor in a prosperous nation - especially for any country's most vulnerable citizens, its children. In comparing the situation of American children in low-income families with their counterparts in fourteen other countries—including Western Europe, Australia, and Canada—they provide a powerful perspective on the dynamics of child poverty in the United States.

Based on the rich data available from the transnational Luxembourg Income Study (LIS), Poor Kids in a Rich Country puts child poverty in the United States in an international context. Rainwater and Smeeding find that while the child poverty rate in most countries has been relatively stable over the past 30 years, child poverty has increased markedly in the United States and Britain—two of the world's wealthiest countries. The book delves into the underlying reasons for this difference, examining the mix of earnings and government transfers, such as child allowances, sickness and maternity benefits, unemployment insurance, and other social assistance programs that go into the income packages available to both single- and dual-parent families in each country. Rainwater and Smeeding call for policies to make it easier for working parents to earn a decent living while raising their children—policies such as parental leave, childcare support, increased income supports for working poor families, and a more socially oriented education policy. They make a convincing argument that our definition of poverty should not be based solely on the official poverty line—that is, the minimum income needed to provide a certain level of consumption—but on the social and economic resources necessary for full participation in society.

Combining a wealth of empirical data on international poverty levels with a thoughtful new analysis of how best to use that data, Poor Kids in a Rich Country will provide an essential tool for researchers and policymakers who make decisions about child and family policy.

LEE RAINWATER is professor emeritus of sociology at Harvard University and research director of the Luxembourg Income Study.

TIMOTHY M. SMEEDING is Maxwell Professor of Public Policy, professor of economics and public administration, and director of the Center for Policy Research at Syracuse University. He is also the director of the Luxembourg Income Study.

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

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.