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.

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

Winner of the 2002 Willard Waller Award for Distinguished Scholarship

In a society where everyone is supposed to go to college, the problems facing high school graduates who do not continue their education are often forgotten. Many cannot find jobs, and those who do are often stuck in low-wage, dead-end positions. Meanwhile employers complain that high school graduates lack the necessary skills for today's workplace. Beyond College for All focuses on this crisis in the American labor market. Around the world, author James E. Rosenbaum finds, employers view high school graduates as valuable workers. Why not here?

Rosenbaum reports on new studies of the interaction between employers and high schools in the United States. He concludes that each fails to communicate its needs to the other, leading to a predictable array of problems for young people in the years after graduation. High schools caught up in the college-for-all myth, provide little job advice or preparation, leading students to make unrealistic plans and hampering both students who do not go to college and those who start college but do not finish. Employers say they care about academic skills, but then do not consider grades when deciding whom to hire. Faced with few incentives to achieve, many students lapse into precisely the kinds of habits employers deplore, doing as little as possible in high school and developing poor attitudes.

Rosenbaum contrasts the situation in the United States with that of two other industrialized nations-Japan and Germany-which have formal systems for aiding young people who are looking for employment. Virtually all Japanese high school graduates obtain work, and in Germany, eighteen-year-olds routinely hold responsible jobs. While the American system lacks such formal linkages, Rosenbaum uncovers an encouraging hidden system that helps many high school graduates find work. He shows that some American teachers, particularly vocational teachers, create informal networks with employers to guide students into the labor market. Enterprising employers have figures out how to use these networks to meet their labor needs, while students themselves can take steps to increase their ability to land desirable jobs.

Beyond College for All suggests new policies based on such practices. Rosenbaum presents a compelling case that the problems faced by American high school graduates and employers can be solved if young people, employers, and high schools build upon existing informal networks to create formal paths for students to enter the world of work.

JAMES E. ROSENBAUM is professor of sociology, education, and social policy at the Institute for Policy Research at Northwestern University.

Enrollment at America’s community colleges has exploded in recent years, with five times as many entering students today as in 1965. However, most community college students do not graduate; many earn no credits and may leave school with no more advantages in the labor market than if they had never attended. Experts disagree over the reason for community colleges’ mixed record. Is it that the students in these schools are under-prepared and ill-equipped for the academic rigors of college? Are the colleges themselves not adapting to keep up with the needs of the new kinds of students they are enrolling? In After Admission, James Rosenbaum, Regina Deil-Amen, and Ann Person weigh in on this debate with a close look at this important trend in American higher education.

After Admission compares community colleges with private occupational colleges that offer accredited associates degrees. The authors examine how these different types of institutions reach out to students, teach them social and cultural skills valued in the labor market, and encourage them to complete a degree. Rosenbaum, Deil-Amen, and Person find that community colleges are suffering from a kind of identity crisis as they face the inherent complexities of guiding their students towards four-year colleges or to providing them with vocational skills to support a move directly into the labor market. This confusion creates administrative difficulties and problems allocating resources. However, these contradictions do not have to pose problems for students. After Admission shows that when colleges present students with clear pathways, students can effectively navigate the system in a way that fits their needs. The occupational colleges the authors studied employed close monitoring of student progress, regular meetings with advisors and peer cohorts, and structured plans for helping students meet career goals in a timely fashion. These procedures helped keep students on track and, the authors suggest, could have the same effect if implemented at community colleges.

As college access grows in America, institutions must adapt to meet the needs of a new generation of students. After Admission highlights organizational innovations that can help guide students more effectively through higher education.

JAMES E. ROSENBAUM is professor of sociology, education, and social policy, and faculty fellow at the Institute for Policy Research at Northwestern University.

REGINA DEIL-AMEN is assistant professor at the Center for the Study of Higher Education, the University of Arizona College of Education.

ANN E. PERSON is a doctoral student in human development and social policy and a graduate fellow with the Institute for Policy Research at Northwestern 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

The children of the past decade's influx of immigrants comprise a second generation far different than any this country has known before. Largely non-white and from the world's developing nations, these children struggle with complex problems of racial and ethnic relations in multicultural urban neighborhoods, attend troubled inner city schools, and face discriminatory labor markets and an economy that no longer provides the abundant manufacturing jobs that sustained previous generations of immigrants. As the contributors to The New Second Generation make clear, the future of these children is an open question that will be key to understanding the long-range consequences of current immigration.

The New Second Generation chronicles the lives of second generation youth in Miami, New York City, New Orleans, and Southern California. The contributors balance careful analysis with the voices of the youngsters themselves, focusing primarily on education, career expectations, language preference, ethnic pride, and the influence of their American-born peers. Demographic portraits by Leif Jensen and Yoshimi Chitose and by Charles Hirschman reveal that although most immigrant youths live at or below the official poverty line, this disadvantage is partially offset by the fact that their parents are typically married, self-employed, and off welfare. However, the children do not always follow the course set by their parents, and often challenge immigrant ethics with a desire to embrace American culture. Mary Waters examines how the tendency among West Indian teens to assume an American black identity links them to a legacy of racial discrimination. Although the decision to identify as American or as immigrant usually presages how well second generation children will perform in school, the formation of this self-image is a complex process. M. Patricia Fernandez-Kelly and Richard Schauffler find marked differences among Hispanic groups, while Ruben G. Rumbaut explores the influence of individual and family characteristics among Asian, Latin, and Caribbean youths.

Nativists frequently raise concerns about the proliferation of a non-English speaking population heavily dependent on welfare for economic support. But Alejandro Portes and Richard Schauffler's historical analysis of language preferences among Miami's Hispanic youth reveals their unequivocal preference for English. Nor is immigrationan inevitable precursor to a swollen welfare state: Lisandro Perez and Min Zhou and Carl L. Bankston demonstrate the importance of extended families and ethnic community solidarity in improving school performance and providing increased labor opportunities.

As immigration continues to change the face of our nation's cities, we cannot ignore the crucial issue of how well the second generation youth will adapt. The New Second Generation provides valuable insight into issues that may spell the difference between regeneration and decay across urban America.

ALEJANDRO PORTES is the John Dewey Professor and Chair of the Department of Sociology at Johns Hopkins University.

CONTRIBUTORS: Carl L. Bankston III, Yoshimi Chitose, Patricia Fernández Kelly, Charles Hirschman, Leif Jensen, Lisandro Perez, Alejandro Portes, Rubén G. Rumbaut, Richard Schauffler, Mary C. Waters, Min Zhou

The impact of long-term longitudinal studies on the landscape of 20th century social and behavioral science cannot be overstated. The field of life course studies has grown exponentially since its inception in the 1950s, and now influences methodologies as well as expectations for all academic research. Looking at Lives offers an unprecedented "insider's view" into the intentions, methods, and findings of researchers engaged in some of the twentieth century's landmark studies. In this volume, eminent American scholars—many of them pioneers in longitudinal studies—provide frank and illuminating insights into the difficulties and the unique scientific benefits of mounting studies that track people's lives over a long period of time.

Looking at Lives includes studies from a range of disciplines, including psychology, sociology, and education, which together cover a span of more than fifty years. The contributors pay particular attention to the changing historical, cultural, and scientific context of their work, as well as the theoretical and methodological changes that have occurred in their fields over decades. What emerges is a clear indication of the often unexpected effects these studies have had on public policies and public opinion—especially as they relate to such issues as the connection between poverty and criminal behavior, or the consequences of teen-age pregnancy and drug use for inner-city youth. For example, David Weikart reveals how his long-term research on preschool intervention projects, begun in 1959, permitted him to show how surprisingly effective preschool education can be in improving the lives of disadvantaged children. In another study, John Laub and Robert Sampson build on findings from a groundbreaking study begun by Sheldon and Eleanor Glueck in the 1950s to reveal the myriad ways in which juvenile delinquency can predict criminal behavior in adults. And Arland Thornton, Ronald Freedman, and William Axinn employ an intergenerational study of women and their children begun in 1962 to examine the substantial relaxation of social mores for family and individual behavior in the latter decades of the 20th century.

Looking at Lives is full of striking testimony to the importance of long-term, longitudinal studies. As a unique chronicle of the origins and development of longitudinal studies in America, this collection will be an invaluable aid to 21st century investigators who seek to build on the successes and the experiences of the pioneers in life-course studies.

ERIN PHELPS is associate director, Murray Research Center, Radcliffe Institute for Advanced Study, Harvard University.

FRANK F. FURSTENBERG, JR. is the Zellerbach Family Professor of Sociology, University of Pennsylvania.

ANNE COLBY is senior scholar, Carnegie Foundation for the Advancement of Teaching.

CONTRIBUTORS: Karl L. Alexander, William G. Axinn, Ann F. Brunswick, Beverly D. Cairns, Robert B. Cairns, Greg J. Duncan, Glen H. Elder Jr., Doris Entwisle, Ronald Freedman, Janet Zollinger Giele, John H. Laub, John Modell, Frank L. Mott, Linda Steffel Olson, Robert J. Sampson, Arland Thornton, George E. Vaillant, David P. Weikart, Emmy E. Werner.

According to the American dream, hard work and a good education can lift people from poverty to success in the "land of opportunity." The unskilled immigrants who came to the United States from southern, central, and eastern Europe in the late 19th and early 20th centuries largely realized that vision. Within a few generations, their descendants rose to the middle class and beyond. But can today’s unskilled immigrant arrivals—especially Mexicans, the nation's most numerous immigrant group—expect to achieve the same for their descendants? Social scientists disagree on this question, basing their arguments primarily on how well contemporary arrivals are faring. In Italians Then, Mexicans Now, Joel Perlmann uses the latest immigration data as well as 100 years of historical census data to compare the progress of unskilled immigrants and their American-born children both then and now.

The crucial difference between the immigrant experience a hundred years ago and today is that relatively well-paid jobs were plentiful for workers with little education a hundred years ago, while today's immigrants arrive in an increasingly unequal America. Perlmann finds that while this change over time is real, its impact has not been as strong as many scholars have argued. In particular, these changes have not been great enough to force today’s Mexican second generation into an inner-city "underclass." Perlmann emphasizes that high school dropout rates among second-generation Mexicans are alarmingly high, and are likely to have a strong impact on the group’s well-being. Yet despite their high dropout rates, Mexican Americans earn at least as much as African Americans, and they fare better on social measures such as unwed childbearing and incarceration, which often lead to economic hardship. Perlmann concludes that inter-generational progress, though likely to be slower than it was for the European immigrants a century ago, is a reality, and could be enhanced if policy interventions are taken to boost high school graduation rates for Mexican children.

Rich with historical data, Italians Then, Mexicans Now persuasively argues that today’s Mexican immigrants are making slow but steady socio-economic progress and may one day reach parity with earlier immigrant groups who moved up into the heart of the American middle class.

JOEL PERLMANN is senior scholar at the Levy Economics Institute of Bard College and the Levy Institute Research Professor at the college.

Copublished with the Levy Economics Institute of Bard College

As anxieties about America’s economic competitiveness mounted in the 1980s, so too did concerns that the nation’s schools were not adequately preparing young people for the modern workplace. Spurred by widespread joblessness and job instability among young adults, the federal government launched ambitious educational reforms in the 1990s to promote career development activities for students. In recent years, however, the federal government has shifted its focus to test-based reforms like No Child Left Behind that emphasize purely academic subjects. At this critical juncture in education reform, Improving School-To-Work Transitions, edited by David Neumark, weighs the successes and failures of the ’90s-era school-to-work initiatives, and assesses how high schools, colleges, and government can help youths make a smoother transition into stable, well-paying employment.

Drawing on evidence from national longitudinal studies, surveys, interviews, and case studies, the contributors to Improving School-To-Work Transitions offer thought-provoking perspectives on a variety of aspects of the school-to-work problem. Deborah Reed, Christopher Jepsen, and Laura Hill emphasize the importance of focusing school-to-work programs on the diverse needs of different demographic groups, particularly immigrants, who represent a growing proportion of the youth population. David Neumark and Donna Rothstein investigate the impact of school-to-work programs on the “forgotten half,” students at the greatest risk of not attending college. Using data from the 1997 National Longitudinal Study of Youth, they find that participation by these students in programs like job shadowing, mentoring, and summer internships raise employment and college attendance rates among men and earnings among women. In a study of nine high schools with National Academy Foundation career academies, Terry Orr and her fellow researchers find that career academy participants are more engaged in school and are more likely to attend a four-year college than their peers. Nan Maxwell studies the skills demanded in entry-level jobs and finds that many supposedly “low-skilled” jobs actually demand extensive skills in reading, writing, and math, as well as the “new basic skills” of communication and problem-solving. Maxwell recommends that school districts collaborate with researchers to identify which skills are most in demand in their local labor markets.

At a time when test-based educational reforms are making career development programs increasingly vulnerable, it is worth examining the possibilities and challenges of integrating career-related learning into the school environment. Written for educators, policymakers, researchers, and anyone concerned about how schools are shaping the economic opportunities of young people, Improving School-To-Work Transitions provides an authoritative guide to a crucial issue in education reform.
 
DAVID NEUMARK is professor of economics at the University of California, Irvine, senior fellow at the Public Policy Institute of California, research associate at the NBER, and research fellow at IZA.

CONTRIBUTORS: Oscar A. Aliaga, Thomas Bailey, Charles Dayton, Laura E. Hill, Katherine L. Hughes, Christopher Jepsen, Melinda Mechur Karp, Gregory S. Kienzl, Andrew Maul, Nan L. Maxwell, Margaret Terry Orr, Ann E. Person, Deborah Reed, James E. Rosenbaum,  Donna Rothstein, David Stern, James R. Stone III, Christopher Wu.

Inequality in income, earnings, and wealth has risen dramatically in the United States over the past three decades. Most research into this issue has focused on the causes—global trade, new technology, and economic policy—rather than the consequences of inequality. In Social Inequality, a group of the nation’s leading social scientists opens a wide-ranging inquiry into the social implications of rising economic inequality. Beginning with a critical evaluation of the existing research, they assess whether the recent run-up in economic inequality has been accompanied by rising inequality in social domains such as the quality of family and neighborhood life, equal access to education and health care, job satisfaction, and political participation.

Marcia Meyers and colleagues find that many low-income mothers cannot afford market-based child care, which contributes to inequality both at the present time—by reducing maternal employment and family income—and through the long-term consequences of informal or low-quality care on children’s educational achievement. At the other end of the educational spectrum, Thomas Kane links the growing inequality in college attendance to rising tuition and cuts in financial aid. Neil Fligstein and Taek-Jin Shin show how both job security and job satisfaction have decreased for low-wage workers compared with their higher-paid counterparts. Those who fall behind economically may also suffer diminished access to essential social resources like health care. John Mullahy, Stephanie Robert, and Barbara Wolfe discuss why higher inequality may lead to poorer health: wider inequality might mean increased stress-related ailments for the poor, and it might also be associated with public health care policies that favor the privileged. On the political front, Richard Freeman concludes that political participation has become more stratified as incomes have become more unequal. Workers at the bottom of the income scale may simply be too hard-pressed or too demoralized to care about political participation. Social Inequality concludes with a comprehensive section on the methodological problems involved in disentangling the effects of inequality from other economic factors, which will be of great benefit to future investigators.

While today’s widening inequality may be a temporary episode, the danger is that the current economic divisions may set in motion a self-perpetuating cycle of social disadvantage. The most comprehensive review of this quandary to date, Social Inequality maps out a new agenda for research on inequality in America with important implications for public policy.

KATHRYN NECKERMAN is associate director of the Institute for Social and Economic Research and Policy, Columbia University.

CONTRIBUTORS: Suzanne Bianchi,  Henry E. Brady,  Coral Celeste,  Tiffani Chin,  Philip N. Cohen,  Sean Corcoran,  Janet Currie,  Paul DiMaggio,  Christine E. Eibner,  David T. Ellwood,  William N. Evans,  Neil Fligstein, Richard B. Freeman,  Jennifer Godwin,  Eszter Hargittai, Robert M. Hauser,  Robert Haveman, V. Joseph Hotz,  Michael Hout,  Christopher Jencks, Thomas J. Kane,  Meredith Kleykamp,  Gabriel S. Lenz,  Kara Levine,  Steven P. Martin,  Susan E. Mayer,  Marcia K. Meyers,  John Mullahy, Sheila E. Murray, Kei Nomaguchi, Lars Osberg, Anne R. Pebley, Meredith Phillips,  Sara Raley, Stephanie Robert,  Dan Rosenbaum,  Jake Rosenfeld, Howard Rosenthal,  Christopher Ruhm,  Gary Sandefur,  Narayan Sastry, Kay Lehman Schlozman,  John Karl Scholz,  Robert M. Schwab, Jonathan Schwabish, Steven Shafer.  Taek-Jin Shin,  Theda Skocpol, Timothy M. Smeeding,  Sidney Verba,  Andrea Voyer,  Jane Waldfogel,  Bruce Western,  Barbara Wolfe.

Examines the dramatic changes in the philanthropic behavior of business corporations in their support of education, health, welfare, and the arts. This analysis shows how traditional patterns of corporate philanthropy have undergone changes across the years, and how, presently, a favorable attitude exists toward giving. The author traces these shifts through periods of depression, war, and peace. He examines economic and non-economic reasons for the growth of corporate giving, and treats the innovative role of company-sponsored foundations.

RALPH L. NELSON is professor of economics at Queens College, City University of New York.