About 27.5 million Americans—nearly 24 percent of the labor force—earn less than $8.70 an hour, not enough to keep a family of four out of poverty, even working full-time year-round. Job ladders for these workers have been dismantled, limiting their ability to get ahead in today’s labor market. Low-Wage America is the most extensive study to date of how the choices employers make in response to economic globalization, industry deregulation, and advances in information technology affect the lives of tens of millions of workers at the bottom of the wage distribution.

Based on data from hundreds of establishments in twenty-five industries—including manufacturing, telecommunications, hospitality, and health care—the case studies document how firms’ responses to economic restructuring often results in harsh working conditions, reduced benefits, and fewer opportunities for advancement. For instance, increased pressure for profits in newly consolidated hotel chains has led to cost-cutting strategies such as requiring maids to increase the number of rooms they clean by 50 percent. Technological changes in the organization of call centers—the ultimate “disposable workplace”—have led to monitoring of operators’ work performance, and eroded job ladders. Other chapters show how the temporary staffing industry has provided paths to better work for some, but to dead end jobs for many others; how new technology has reorganized work in the back offices of banks, raising skill requirements for workers; and how increased competition from abroad has forced U.S. manufacturers to cut costs by reducing wages and speeding production.

Although employers’ responses to economic pressures have had a generally negative effect on frontline workers, some employers manage to resist this trend and still compete successfully. The benefits to workers of multi-employer training consortia and the continuing relevance of unions offer important clues about what public policy can do to support the job prospects of this vast, but largely overlooked segment of the American workforce. Low-Wage America challenges us to a national self-examination about the nature of low-wage work in this country and asks whether we are willing to tolerate the profound social and economic consequences entailed by these jobs.

EILEEN APPELBAUM is professor and director of the Center for Women and Work at Rutgers University.

ANNETTE BERNHARDT is senior policy analyst at the Brennan Center for Justice, New York University School of Law.

RICHARD J. MURNANE is the Thompson Professor of Education and Society, Harvard Graduate School of Education and research associate at the National Bureau of Economic Research.

CONTRIBUTORS: David H. Autor, John W. Ballentine Jr., Ann P. Baretl, Rosemary Batt, Peter Berg, Rachel Connelly, Deborah S. DeGraff, Laura Dresser, George A. Erickcek, Ronald F. Ferguson, David Finegold, Ann Frost, Erin Hatton, Susan Helper, Susan N. Haouseman, Larry W. Hunter, Casey Ichniowski, Derek C. Jones, Arne L. Kalleberg, Takao Kato, Morris M. Kleiner, Julia Lane, Alec Levenson, Frank Levy, Philip Moss, Gil Pruess, Harold Salzman, Kathryn Shaw, Chris Tilly, Mark Van Buren, Adam Weinberg, Steffanie Wilk, Rachel A. Willis.

A Volume in the RSF Case Stud ies of Job Quality in Advanced Economies

For much of the 20th century, American workers were the world's leaders in productivity, wages, and positive workplace conditions. American unions championed free enterprise and high labor standards, and American businesses dominated the world market. But, as editor Richard B. Freeman cautions in Working Under Different Rules, despite our relatively high standard of living we have fallen behind our major trading partners and competitors in providing good jobs at good pay—what was once considered "the American dream." Working Under Different Rules assesses the decline in the well-being of American workers—evidenced by spiraling income inequality and stagnant real earnings—and compares our employment and labor conditions with those of Western Europe, Canada, Japan, and Australia.

As these original essays demonstrate, the modern U.S. labor market is characterized by a high degree of flexibility, with rapid employee turnover, ongoing creation of new jobs, and decentralized wage setting practices. But closer inspection reveals a troubling flip side to this adaptability in the form of inadequate job training, more frequent layoffs, and increased numbers of workers pushed to the very bottom of the income scale, into the low wage occupations where much of the recent job growth has occurred. While the variety of works councils prevalent throughout the developed world have done much to foster democratic rights and economic protection for employees, the virtually union-free environment emerging in many areas of the private U.S. economy has stripped workers of a strong collective voice. German apprenticeship programs and the Japanese system of "job rotation" represent more effective approaches to preparing workers for the changing demands of lifetime employment. In addition, workers in European advanced economies and in Canada have greater social protection than Americans. But while this has some cost in unemployment and higher taxes, carefully designed social safety nets do not seriously jeopardize economic efficiency.

Working Under Different Rules is an illuminating analysis of the often complex interaction of market institutions, social policy, and economic results. The authors' up-to-date international assessment of unions, wage setting, apprenticeship programs, welfare support, and works councils suggests alternate ways of training, paying, and empowering workers that, if effectively adapted, could facilitate the growth of a healthier American economy and better prospects for American workers.

RICHARD B. FREEMAN is Herbert Ascherman Professor of Economics at Harvard University and program director for Labor Studies at the National Bureau of Economic Research. He is also executive programme director for Comparative Labour Market Institutions at the London School of Economics, Centre for Economic Performance.

The new economic sociology is based on the theory that patterns of economic behavior are shaped by social factors. The Sociology of the Economy brings together a dozen path-breaking empirical studies that explore how social forces—such as shifts in political power, the influence of social networks, or the spread of new economic ideas—shape real-world economic behavior.

The contributors—all leading economic sociologists—show these social forces at work in a diverse range of international settings and historical circumstances. Examining why so many American banks followed industry leaders into foreign markets in the 1970s, only to pull back within a few years, Mark Mizruchi and Gerald Davis suggest that social emulation rather than rational calculation led banks to expand globally before there was any evidence that foreign offices paid off. William Schneper and Mauro Guillé show that despite the international diffusion of the hostile takeover during the last twenty years, the practice became widespread only in countries with political institutions conducive to buying and selling entire companies. Thus during the 1990s, the United States and United Kingdom saw hundreds of hostile takeover bids, while Germany had only a handful, and Japan just one. Deborah Davis explores resistance to the globalization of Western ideas about real-estate ownership—particularly in China where the government has had little success in instituting a market system in place of traditional, family-based real-estate inheritance. And Richard Scott examines the controversial rise of managed care in the American healthcare system, as the quest for market efficiency collided with the ideal of equity in access to health care.

Together, these studies provide compelling evidence that economic behavior is not ruled by immutable laws, and is but one realm of social behavior, with its own conventions, roles, and social structures. The Sociology of the Economy demonstrates the vitality of empirical research in the field of economic sociology and the power of sociological models in explaining how markets operate.

FRANK DOBBIN is professor of sociology at Harvard University.

CONTRIBUTORS: Urs Bruegger, Karin Knorr Cetina, Deborah S. Davis, Gerald F. Davis, Bai Gao, Mauro F. Guillen, Heather A. Haveman, Kieran Healy, Lisa A. Keister, Paul D. McLean, Mark S. Mizruchi, John F. Padgett, Charles Perrow, William D. Schneper, W. Richard Scott, Richard Swedberg. 

The 9/11 terrorist attacks opened America’s eyes to a frightening world of enemies surrounding us. But have our eyes opened wide enough to see how our experiences compare with other nations’ efforts to confront and prevent terrorism? Other democracies have long histories of confronting both international and domestic terrorism. Some have undertaken progressively more stringent counterterrorist measures in the name of national security and the safety of citizens. The Consequences of Counterterrorism examines the political costs and challenges democratic governments face in confronting terrorism.

Using historical and comparative perspectives, The Consequences of Counterterrorism presents thematic analyses as well as case studies of Britain, France, Germany, Spain, Japan, and Israel. Contributor John Finn compares post-9/11 antiterrorism legislation in the United States, Europe, Canada, and India to demonstrate the effects of hastily drawn policies on civil liberties and constitutional norms. Chantal de Jonge Oudraat and Jean-Luc Marret assert that terrorist designation lists are more widespread internationally than ever before. The authors examine why governments and international organizations use such lists, how they work, and why they are ineffective tools. Gallya Lahav shows how immigration policy has become inextricably linked to security in the EU and compares the European fear of internal threats to the American fear of external ones.

A chapter by Dirk Haubrich explains variation in the British government’s willingness to compromise democratic principles according to different threats. In his look at Spain and Northern Ireland, Rogelio Alonso asserts that restricting the rights of those who perpetrate ethnonationalist violence may be acceptable in order to protect the rights of citizens who are victims of such violence. Jeremy Shapiro considers how the French response to terrorist threats has become more coercive during the last fifty years. Israel’s “war model” of counterterrorism has failed, Ami Pedahzur and Arie Perliger argue, and is largely the result of the military elite’s influence on state institutions. Giovanni Cappocia explains how Germany has protected basic norms and institutions. In contrast, David Leheny stresses the significance of change in Japan’s policies.

Preventing and countering terrorism is now a key policy priority for many liberal democratic states. As The Consequences of Counterterrorism makes clear, counterterrorist policies have the potential to undermine the democratic principles, institutions, and processes they seek to preserve.

MARTHA CRENSHAW is senior fellow at the Center for International Security and Cooperation and Freeman Spogli Institute for International Studies at Stanford University, and a professor of political science by courtesy, as well as professor of government, emerita, at Wesleyan University.

CONTRIBUTORS: Rogelio Alonso, Giovanni Capoccia, Martha Crenshaw, Chantal de Jonge Oudraat, John E. Finn, Dirk Haubrich, Gallya Lahav, David Leheny, Jean-Luc Marret, Ami Pedahzur, Arie Perliger, and Jeremy Shapiro.

In France, low wages have historically inspired tremendous political controversy. The social and political issues at stake center on integrating the working class into society and maintaining the stability of the republican regime. A variety of federal policies—including high minimum wages and strong employee protection—serve to ensure that the low-wage workforce stays relatively small. Low-Wage Work in France examines both the benefits and drawbacks of this politically inspired system of worker protection. France’s high minimum wage, which is indexed not only to inflation but also to the average increase in employee wages, plays a critical role in limiting the development of low-paid work. Social welfare benefits and a mandatory thirty-five hour work week also make life easier for low-wage workers. Strong employee protection is a central characteristic of the French model, but high levels of protection for employees may also be one of the causes of France’s chronically high rate of unemployment. The threat of long-term unemployment may, in turn, contribute to a persistent sense of insecurity among French workers. Low-Wage Work in France provides a lucid analysis of how a highly regulated labor market shapes the experiences of workers—for better and for worse.

ÈVE CAROLI is professor of economics at University Paris X.

JÉRÔME GAUTIÉ is professor of economics at the University of Paris 1 Panthéon-Sorbonne.

CONTRIBUTORS: Anne Marie Arborio, Philippe Askenazy, Mathieu Beraud, Jean-Baptiste Berry, Jacques Bouteiller, Lise Causse, Thierry Colin, Emilie Feriel, Benoit Grasser, Christine Guegnard, Annie Lamenthe, Philippe Mehaut, Sylvie-Anne Meriot, Philippe Mosse, Sophie Prunier-Poulmaire, Robert Solow.

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

The police and the courts depend on the cooperation of communities to keep order. But large numbers of urban poor distrust law enforcement officials. Legitimacy and Criminal Justice explores the reasons that legal authorities are or are not seen as legitimate and trustworthy by many citizens.

Legitimacy and Criminal Justice is the first study of the perceived legitimacy of legal institutions outside the U.S. The authors investigate relations between courts, the police, and communities in the U.K., Western Europe, South Africa, Slovenia, South America, and Mexico, demonstrating the importance of social context in shaping those relations. Gorazd Meško and Goran Klemenčič examine Slovenia’s adoption of Western-style “community policing” during its transition to democracy. In the context of Slovenia’s recent Communist past—when “community policing” entailed omnipresent social and political control—citizens regarded these efforts with great suspicion, and offered little cooperation to the police. When states fail to control crime, informal methods of law can gain legitimacy. Jennifer Johnson discusses an extra-legal policing system carried out by farmers in Guerrero, Mexico—complete with sentencing guidelines and initiatives to reintegrate offenders into the community. Feeling that federal authorities were not prosecuting the crimes that plagued their province, the citizens of Guerrero strongly supported this extra-legal arrangement, and engaged in massive protests when the central government tried to suppress it. Several of the authors examine how the perceived legitimacy of the police and courts varies across social groups. Graziella Da Silva, Ignacio Cano, and Hugo Frühling show that attitudes toward the police vary greatly across social classes in harshly unequal societies like Brazil and Chile. And many of the authors find that ethnic minorities often display greater distrust toward the police, and perceive themselves to be targets of police discrimination. Indeed, Hans-Jöerg Albrecht finds evidence of bias in arrests of the foreign born in Germany, which has fueled discontent among Berlin’s Turkish youth. Sophie Body-Gendrot points out that mutual hostility between police and minority communities can lead to large-scale violence, as the Parisian banlieu riots underscored.

The case studies presented in this important new book show that fostering cooperation between law enforcement and communities requires the former to pay careful attention to the needs and attitudes of the latter. Forging a new field of comparative research, Legitimacy and Criminal Justice brings to light many of the reasons the law’s representatives succeed—or fail—in winning citizens’ hearts and minds.

ANTHONY BRAGA is a senior research associate at the Kennedy School of Government, Harvard University, and at the Berkeley Center for Criminal Justice at the University of California, Berkeley.

JEFFREY FAGAN is professor of law and public health at Columbia University, and director of the Center for Crime, Community and Law at Columbia Law School.

TRACEY MEARES is professor of law at Yale Law School.

ROBERT SAMPSON is Henry Ford II Professor of the Social Sciences at Harvard University.

TOM R. TYLER is University Professor of Psychology at New York University.

CHRIS WINSHIP is Diker-Tishman Professor of Sociology at Harvard University and also a member of the faculty of the Kennedy School of Government.

CONTRIBUTORS: Hans-Jorg Albrecht, Catrien Bijleveld, Sophie Body-Gendrot, Anthony Braga, John Braithwaite, Ignacio Cano, Jean Camaroff, John Camaroff, Jeffrey Fagan, Hugo Fruhling, Heike Goudriaan, Mike Hough, Jennifer L. Johnson, Goran Klemencic, Marijke Malsch, Tracey Meares, Gorazd Mesko, Graziella Moraes, Sebastian Roche, Robert Sampson, David J. Smith, Michael Tonry, Chris Winship.

A Volume in the Russell Sage Foundation Series on Trust

In recent years, the German government has intentionally expanded the low-wage work sector in an effort to reduce exceptionally high levels of unemployment. As a result, the share of the German workforce employed in low-paying jobs now rivals that of the United States. Low Wage Work in Germany examines both the federal policies and changing economic conditions that have driven this increase in low-wage work. The new “mini-job” reflects the federal government’s attempt to make certain low-paying jobs attractive to both employers and employees. Employers pay a low flat rate for benefits, and employees, who work a limited number of hours per week, are exempt from social security and tax contributions. Other factors, including slow economic growth, a declining collective bargaining system, and the influx of foreign workers, also contribute to the growing incidence of low-wage work. Yet while both Germany and the United States have large shares of low-wage workers, German workers receive health insurance, four weeks of paid vacation, and generous old age support—benefits most low-wage workers in the United States can only dream of. The German experience offers an important opportunity to explore difficult trade-offs between unemployment and low-wage work.

GERHARD BOSCH is professor of sociology at the University of Duisburg-Essen.

CLAUDIA WEINKOPF is deputy director of the Institute for Work, Skills, and Training at the University of Duisburg-Essen.

CONTRIBUTORS: Lars Czommer, Karen Jaehrling, Thorsten Kalina, Robert Solow, Achim Vanselow, Dorothea Voss-Dahm.

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

A large central government providing numerous public services has long been a hallmark of Swedish society, which is also well-known for its pursuit of equality. Yet in the 1990s, Sweden moved away from this tradition in education, introducing market-oriented reforms that decentralized authority over public schools and encouraged competition between private and public schools. Many wondered if this approach would improve educational quality, or if it might expand inequality that Sweden has fought so hard to hold down. In The Market Comes to Education in Sweden, economists Anders Björklund, Melissa Clark, Per-Anders Edin, Peter Fredriksson, and Alan Krueger measure the impact of Sweden's bold experiment in governing and help answer the questions that societies across the globe have been debating as they try to improve their children's education.

The Market Comes to Education in Sweden injects some much-needed objectivity into the heavily politicized debate about the effectiveness of educational reform. While advocates for reform herald the effectiveness of competition in improving outcomes, others suggest that the reforms will grossly increase educational inequality for young people. The authors find that increased competition did help improve students' math and language skills, but only slightly, and with no effect on the performance of foreign-born students and those with low-educated parents. They also find some signs of increasing school segregation and wider inequality in student performance, but nothing near the doomsday scenarios many feared. In fact, the authors note that the relationship between family background and school performance has hardly budged since before the reforms were enacted. The authors conclude by providing valuable recommendations for school reform, such as strengthening school evaluation criteria, which are essential for parents, students, and governments to make competent decisions regarding education.

Whether or not the market-oriented reforms to Sweden's educational system succeed will have far reaching implications for other countries considering the same course of action. The Market Comes to Education in Sweden offers firm empirical answers to the questions raised by school reform and brings crucial facts to the debate over the future of schooling in countries across the world.

ANDERS BJÖRKLAND is professor of economics in the Swedish Institute for Social Research at Stockholm University.

MELISSA A. CLARK is Visiting Lecturer at Mathematica Policy Research, Inc. and teaches masters and doctoral students in the Woodrow Wilson School of Public and International Affairs at Princeton University.

PER-ANDERS EDIN is professor in the Department of Economics at Uppsala University.

PETER FREDRIKSSON is associate professor in the Department of Economics at Uppsala University.

ALAN B. KRUEGER is Bendheim Professor of Economics and Public Policy in the Economics Department and Woodrow Wilson School at Princeton University.

Explores the mechanisms of military intervention and its consequences. The contributors examine a succession of coups, attempted coups, and established military regimes, with a view to evaluate the role of the military as a ruling group and an organization fostering political development. These studies cast strong doubt on the abilities of the military as a modernizing and stabilizing agent, raising important questions about our policies on military assistance and arms sales. Bienen makes an especially strong plea for a reassessment of our military and economic-political policies in order to determine whether both are working toward the same goals.

HENRY BIENEN is assistant professor of politics and faculty associate at the Center of International Studies, Princeton University.

CONTRIBUTORS:  Donald N. Levine, Jae Souk Sohn, Philip B. Springer, Nur Yalman, Aristide R. Zolberg.

The gap between the richest and poorest Americans has grown steadily over the last thirty years, and economic inequality is on the rise in many other industrialized democracies as well. But the magnitude and pace of the increase differs dramatically across nations. A country’s political system and its institutions play a critical role in determining levels of inequality in a society. Democracy, Inequality, and Representation argues that the reverse is also true—inequality itself shapes political systems and institutions in powerful and often overlooked ways.

In Democracy, Inequality, and Representation, distinguished political scientists and economists use a set of international databases to examine the political causes and consequences of income inequality. The volume opens with an examination of how differing systems of political representation contribute to cross-national variations in levels of inequality. Torben Iverson and David Soskice calculate that taxes and income transfers help reduce the poverty rate in Sweden by over 80 percent, while the comparable figure for the United States is only 13 percent. Noting that traditional economic models fail to account for this striking discrepancy, the authors show how variations in electoral systems lead to very different outcomes.

But political causes of disparity are only one part of the equation. The contributors also examine how inequality shapes the democratic process. Pablo Beramendi and Christopher Anderson show how disparity mutes political voices: at the individual level, citizens with the lowest incomes are the least likely to vote, while high levels of inequality in a society result in diminished electoral participation overall. Thomas Cusack, Iverson, and Philipp Rehm demonstrate that uncertainty in the economy changes voters’ attitudes; the mere risk of losing one’s job generates increased popular demand for income support policies almost as much as actual unemployment does. Ronald Rogowski and Duncan McRae illustrate how changes in levels of inequality can drive reforms in political institutions themselves. Increased demand for female labor participation during World War II led to greater equality between men and women, which in turn encouraged many European countries to extend voting rights to women for the first time.

The contributors to this important new volume skillfully disentangle a series of complex relationships between economics and politics to show how inequality both shapes and is shaped by policy. Democracy, Inequality, and Representation provides deeply nuanced insight into why some democracies are able to curtail inequality—while others continue to witness a division that grows ever deeper.

PABLO BERAMENDI is assistant professor of political science at Duke University.

CHRISTOPHER J. ANDERSON is professor of government at Cornell University.

CONTRIBUTORS: Christopher J. Anderson, Pablo Beramendi, Andrea Brandolini, Thomas R. Cusack, Robert J. Franzese Jr., Jude C. Hays, Torben Iversen, Duncan C. McRae, Jonas Pontusson, Philipp Rehm, Ronald Rogowski, David Rueda, Lyle Scruggs, Timothy M. Smeeding, and David Soskice.