"Cogently argued, fills an important gap in the literature, and is accessible to undergraduates." —Choice

"Dismantles the mythology surrounding pawnshops and check-cashing outlets, and demonstrates that they are no longer on the fringe of our financial system but integral to it."—San Francisco Bay Guardian

In today's world of electronic cash transfers, automated teller machines, and credit cards, the image of the musty, junk-laden pawnshop seems a relic of the past. But it is not. The 1980s witnessed a tremendous boom in pawnbroking. There are now more pawnshops thanever before in U.S. history, and they are found not only in large cities but in towns and suburbs throughout the nation. As John Caskey demonstrates in Fringe Banking, the increased public patronage of both pawnshops and commercial check-cashing outlets signals the growing number of American households now living on a cash-only basis, with no connection to any mainstream credit facilities or banking services.

Fringe Banking is the first comprehensive study of pawnshops and check-cashing outlets, profiling their operations, customers, and recent growth from family-owned shops to such successful outlet chains as Cash American and ACE America's Cash Express. It explains why, despite interest rates and fees substantially higher than those of banks, their use has so dramatically increased. According to Caskey, declining family earnings, changing family structures, a growing immigrant population, and lack of household budgeting skills has greatly reduced the demand for bank deposit services among millions of Americans. In addition, banks responded to 1980s regulatory changes by increasing fees on deposit accounts with small balances and closing branches in many poor urban areas.

These factors combined to leave many low- and moderate-income families without access to checking privileges, credit services, and bank loans. Pawnshops and check-cashing outlets provide such families with essential financial services thay cannot obtain elsewhere. Caskey notes that fringe banks, particularly check-cashing outlets, are also utilized by families who could participate in the formal banking system, but are willing to pay more for convenience and quick access to cash. Caskey argues that, contrary to their historical reputation as predators milking the poor and desperate, pawnshops and check-cashing outlets play a key financial role for disadvantaged groups. Citing the inconsistent and often unenforced state laws currently governing the industry, Fringe Banking challenges policy makers to design regulations that will allow fringe banks to remain profitable without exploiting the customers who depend on them.

JOHN P. CASKEY is associate professor of economics at Swarthmore College.

Do plummeting welfare caseloads and rising employment prove that welfare reform policies have succeeded, or is this success due primarily to the job explosion created by today's robust economy? With roughly one to two million people expected to leave welfare in the coming decades, uncertainty about their long-term prospects troubles many social scientists. Finding Jobs offers a thorough examination of the low-skill labor market and its capacity to sustain this rising tide of workers, many of whom are single mothers with limited education. Each chapter examines specific trends in the labor market to ask such questions as: How secure are these low-skill jobs, particularly in the event of a recession? What can these workers expect in terms of wage growth and career advancement opportunities? How will a surge in the workforce affect opportunities for those already employed in low-skill jobs?

Finding Jobs offers both good and bad news about work and welfare reform. Although the research presented in this book demonstrates that it is possible to find jobs for people who have traditionally relied on public assistance, it also offers cautionary evidence that today's strong economy may mask enduring underlying problems. Finding Jobs shows that the low-wage labor market is particularly vulnerable to economic downswings and that lower skilled workers enjoy less job stability. Several chapters illustrate why financial incentives, such as the Earned Income Tax Credit (EITC), are as essential to encouraging workforce participation as job search programs. Other chapters show the importance of including provisions for health insurance, and of increasing subsidies for child care to assist the large population of working single mothers affected by welfare reform.

Finding Jobs also examines the potential costs of new welfare restrictions. It looks at how states can improve their flexibility in imposing time limits on families receiving welfare, and calls into question the cutbacks in eligibility for immigrants, who traditionally have relied less on public assistance than their native-born counterparts.

Finding Jobs is an informative and wide-ranging inquiry into the issues raised by welfare reform. Based on comprehensive new data, this volume offers valuable guidance to policymakers looking to design policies that will increase work, raise incomes, and lower poverty in changing economic conditions.

REBECCA M. BLANK is dean of the Gerald R. Ford School of Public Policy and Henry Carter Adams Collegiate Professor of Public Policy at the University of Michigan. She is also research associate of the National Bureau of Economic Research.

DAVID E. CARD is Class of 1950 Professor of Economics and head of the Center for Labor Economics at the University of California, Berkeley. He is also research associate of the National Bureau of Economic Research.

CONTRIBUTORS: Patricia Anderson, Timothy Bartik, Kristin Butcher, Janet Currie, Stacy Dickert-Conlin, David T. Ellwood, Tricia Gladden, Douglas Holtz-Eakin, Harry J. Holzer, Hilary Hoynes, Luojia Hu, Robert J. LaLonde, Phillip B. Levine, Susan E. Mayer, Robert A. Moffitt, LaDonna A. Pavetti, Philip K. Robins, Christopher Taber, Jane Waldfogel, Elisabeth D. Welty, Aaron Yelowitz

Often described as an emergency, homelessness in America is becoming a chronic condition that reflects an overall decline in the nation's standard of living and the general state of the economy. This is the disturbing conclusion drawn by Martha Burt in Over the Edge, a timely book that takes a clear-eyed look at the astonishing surge in the homeless population during the 1980s.

Assembling and analyzing data from 147 U.S. cities, Burt documents the increase in homelessness and proposes a comprehensive explanation of its causes, incorporating economic, personal, and policy determinants. Her unique research answers many provocative questions: Why did homelessness continue to spiral even after economic conditions improved in 1983? Why is it significantly greater in cities with both high poverty rates and high per capita income? What can be done about the problem?

Burt points to the significant catalysts of homelessness—the decline of manufacturing jobs in the inner city, the increased cost of living, the tight rental housing market, diminished household income, and reductions in public benefit programs—all of which exert pressures on the more vulnerable of the extremely poor. She looks at the special problems facing the homeless, including the growing number of mentally ill and chemically dependent individuals, and explains why certain groups—minorities and low-skilled men, single men and women, and families headed by women—are at greatest risk of becoming homeless. Burt's analysis reveals that homelessness arises from no single factor, but is instead perpetuated by pivotal interactions between external social and economic conditions and personal vulnerabilities.

From an understanding of these interactions, Over the Edge builds lucid, realistic recommendations for policymakers struggling to alleviate a situation of grave consequence for our entire society.

MARTHA R. BURT is director of the Social Services Research Program at the Urban Institute.

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

Most Americans agree on the necessity of education reform, but there is little consensus about how this goal might be achieved. The rhetoric of standards and vouchers has occupied center stage, polarizing public opinion and affording little room for reflection on the intangible conditions that make for good schools. Trust in Schools engages this debate with a compelling examination of the importance of social relationships in the successful implementation of school reform.

Over the course of three years, Bryk and Schneider, together with a diverse team of other researchers and school practitioners, studied reform in twelve Chicago elementary schools. Each school was undergoing extensive reorganization in response to the Chicago School Reform Act of 1988, which called for greater involvement of parents and local community leaders in their neighborhood schools. Drawing on years longitudinal survey and achievement data, as well as in-depth interviews with principals, teachers, parents, and local community leaders, the authors develop a thorough account of how effective social relationships—which they term relational trust—can serve as a prime resource for school improvement. Using case studies of the network of relationships that make up the school community, Bryk and Schneider examine how the myriad social exchanges that make up daily life in a school community generate, or fail to generate, a successful educational environment. The personal dynamics among teachers, students, and their parents, for example, influence whether students regularly attend school and sustain their efforts in the difficult task of learning. In schools characterized by high relational trust, educators were more likely to experiment with new practices and work together with parents to advance improvements. As a result, these schools were also more likely to demonstrate marked gains in student learning. In contrast, schools with weak trust relations saw virtually no improvement in their reading or mathematics scores.

Trust in Schools demonstrates convincingly that the quality of social relationships operating in and around schools is central to their functioning, and strongly predicts positive student outcomes. This book offer insights into how trust can be built and sustained in school communities, and identifies some features of public school systems that can impede such development. Bryk and Schneider show how a broad base of trust across a school community can provide a critical resource as education professional and parents embark on major school reforms.

ANTHONY S. BRYK is Marshall Field IV Professor of Urban Education and Sociology, University of Chicago.

BARBARA SCHNEIDER is professor of sociology and human development, University of Chicago.