A taxi driver’s life is dangerous work. Picking up a bad customer can leave the driver in a vulnerable position, and erring even once can prove fatal. To protect themselves, taxi drivers must quickly and accurately assess the trustworthiness of complete strangers. In Streetwise, Diego Gambetta and Heather Hamill take this predicament as a prototypical example of many trust decisions, where people must act on limited information and judge another person’s trustworthiness based on signs that may or may not be honest indicators of that person’s character or intent. Gambetta and Hamill analyze the behavior of cabbies in two cities where driving a taxi is especially perilous: New York City, where drivers have been the targets of frequent and violent robberies, and Belfast, Northern Ireland, a divided metropolis where drivers have been swept up in the region’s sectarian violence.

Based on in-depth ethnographic research, Streetwise lets drivers describe in their own words how they seek to determine the threat posed by each potential passenger. The drivers’ decisions about whom to trust are treated in conjunction with the “sign-management” strategies of their prospective passengers—both genuine passengers who try to persuade drivers of their trustworthiness and the villains who mimic them. As the theory that guides this research suggests, drivers look for signs that correlate closely with trustworthiness but are difficult for an impostor to mimic. A smile, a business suit, or a skullcap alone do not reassure drivers, as any criminal could easily wear them. Only if attached to other signs—a middle-aged woman, a business address, or a synagogue—are they persuasive. Drivers are adept at deciphering deceitful signals, but trickery is occasionally undetectable, so they must adopt defensive strategies to minimize their exposure to harm. In Belfast, where drivers are locals and often have histories of paramilitary involvement, “macho” posturing often serves to deter would-be criminals, while New York cabbies, mostly immigrants who view themselves as outsiders, try simply to minimize the damage from attacks by appeasing robbers and carrying only small amounts of cash.

For most people, erring in a trust decision leads to a broken heart or a few dollars lost. For cab drivers, such an error could mean losing their lives. The way drivers negotiate these high stakes offers us vivid insight into how to determine another person’s trustworthiness. Written with clarity and color, Streetwise invites the reader to ride shotgun with cabbies as they grapple with a question of relevance to us all: which signs of trustworthiness can we really trust?

DIEGO GAMBETTA is Official Fellow of Nuffield College and professor of sociology at the University of Oxford.

HEATHER HAMILL is lecturer in sociology at the University of Oxford, and a Fellow of St. Cross College.

A Volume in the Russell Sage Foundation Series on Trust

Important differences persist between rural and urban America, despite profound economic changes and the notorious homogenizing influence of the media. As Glenn V. Fuguitt, David L. Brown, and Calvin L. Beale show in Rural and Small Town America, the much-heralded disappearance of small town life has not come to pass, and the nonmetropolitan population still constitutes a significant dimension of our nation's social structure.

Based on census and other recent survey data, this impressive study provides a detailed and comparative picture of rural America. The authors find that size of place is a critical demographic factor, affecting population composition (rural populations are older and more predominantly male than urban populations), the distribution of poverty (urban poverty tends to be concentrated in neighborhoods; rural poverty may extend over large blocks of counties), and employment opportunities (job quality and income are lower in rural areas, though rural occupational patterns are converging with those of urban areas). In general, rural and small town America still lags behind urban America on many indicators of social well-being. Pointing out that rural life is no longer synonymous with farming, the authors explore variations among nonmetropolitan populations. They also trace the impact of major national trends—the nonmetropolitan growth spurt of the 1970s and its current reversal, for example, or changing fertility rates—on rural life and on the relationship between metropolitan and nonmetropolitan communities.

By describing the special characteristics and needs of rural populations as well as the features they share with urban America, this book clearly demonstrates that a more accurate picture of nonmetropolitan life is essential to understanding the larger dynamics of our society.

GLENN V. FUGUITT is professor of rural sociology and sociology at the University of Wisconsin, Madison.

DAVID L. BROWN is associate director for research in the College of Agriculture and professor of rural sociology at Cornell University.

CALVIN L. BEALE is senior demographer, Economic Research Service, U.S. Department of Agriculture.

A Volume in the RSF Census Series

The vast disparities in college attendance and graduation rates between students from different class backgrounds is a growing social concern. Economic Inequality and Higher Education investigates the connection between income inequality and unequal access to higher education, and proposes solutions that the state and federal governments and schools themselves can undertake to make college accessible to students from all backgrounds.

Economic Inequality and Higher Education convenes experts from the fields of education, economics, and public policy to assess the barriers that prevent low-income students from completing college. For many students from disadvantaged socioeconomic backgrounds, the challenge isn’t getting into college, but getting out with a degree. Helping this group will require improving the quality of education in the community colleges and lower-tier public universities they are most likely to attend. Documenting the extensive disjuncture between the content of state-mandated high school testing and college placement exams, Michael Kirst calls for greater alignment between K-12 and college education. Amanda Pallais and Sarah Turner examine barriers to access at elite universities for low-income students—including tuition costs, lack of information, and poor high school records—as well as recent initiatives to increase socioeconomic diversity at private and public universities. Top private universities have increased the level and transparency of financial aid, while elite public universities have focused on outreach, mentoring, and counseling, and both sets of reforms show signs of success. Ron Ehrenberg notes that financial aid policies in both public and private universities have recently shifted towards merit-based aid, away from the need-based aid that is most helpful to low-income students. Ehrenberg calls on government policy makers to create incentives for colleges to increase their representation of low-income students.

Higher education is often vaunted as the primary engine of upward mobility. Instead, as inequality in America rises, colleges may be reproducing income disparities from one generation to the next. Economic Inequality and Higher Education illuminates this worrisome trend and suggests reforms that educational institutions and the government must implement to make the dream of a college degree a reality for all motivated students.

STACY DICKERT-CONLIN is associate professor of economics at Michigan State University.

ROSS RUBENSTEIN is associate professor of public administration at Syracuse University and a senior research associate at the Center for Policy Research.

CONTRIBUTORS: Stacy Dickert-Conlin, Ross Rubenstein, Eric P. Bettinger, Ronald G. Ehrenberg, Dan Goldhaber, Robert Haveman, Michael Kirst, Bridget Terry Long, Amanda Pallais, Gretchen K. Peri, Amy Ellen Schwartz, Sarah E. Turner, and Kathryn Wilson.

The strike against the World Trade Center on September 11, 2001, was a violent blow against the United States and a symbolic attack on capitalism and commerce. It shut down one of the world’s busiest commercial centers for weeks, destroyed or damaged billions of dollars worth of property, and forced many New York City employers to slash their payrolls or move jobs to other areas. The immediate economic effect was substantial, but how badly did 9/11 affect New York City’s economy in the longer term? In Resilient City, Howard Chernick and a team of economic experts examine the city’s economic recovery in the three years following the destruction of the Twin Towers.

Assessing multiple facets of the New York City economy in the years after 9/11, Resilient City discerns many hopeful signs among persistent troubles. Analysis by economist Sanders Korenman indicates that the value of New York–based companies did not fall relative to other firms, indicating that investors still believe that there are business advantages to operating in New York despite higher rates of terrorism insurance and concerns about future attacks. Cordelia Reimers separates the economic effect of 9/11 from the effects of the 2001 recession by comparing employment and wage trends for disadvantaged workers in New York with those in five major U.S. cities. She finds that New Yorkers fared at least as well as people in other cities, suggesting that the decline in earnings and employment for low-income New York workers in 2002 was due more to the recession than to the effects of 9/11. Still, troubles remain for New York City. Howard Chernick considers the substantial fiscal implications of the terrorist attacks on New York City, estimating that the attack cost the city about $3 billion in the first two years alone; a sum that the city now must make up through large tax increases, spending cuts, and substantial additional borrowing, which will inevitably be a burden on future budgets.

The terrorist attacks of September 11 dealt a severe blow to the economy of New York City, but it was far from a knock-out punch. Resilient City shows that New York’s dynamic, flexible economy has absorbed the hardships inflicted by the attacks, and provides a thorough, authoritative assessment of what, so far, has been a strong recovery.

HOWARD CHERNICK is professor of economics at Hunter College of the City University of New York.

CONTRIBUTORS:  Joshua Chang,  Oliver D. Cooke,  Franz Fuerst,  Andrew F. Haughwout,  Edward W. Hill,  Sanders Korenman,  Iryna Lendel,  James A. Parrott,  Cordelia W. Reimers,  Jonathan A. Schwabish. 

A September 11 Initiative Volume

Los Angeles is a city of delicate racial and ethnic balance. As evidenced by the 1965 Watts violence, the 1992 Rodney King riots, and this year’s award-winning film Crash, the city’s myriad racial groups coexist uneasily together, often on the brink of confrontation. In fact, Los Angeles is highly segregated, with racial and ethnic groups clustered in homogeneous neighborhoods. These residential groupings have profound effects on the economic well-being and quality of life of residents, dictating which jobs they can access, which social networks they can tap in to, and which schools they attend. In Won’t You Be My Neighbor?, sociologist Camille Zubrinsky Charles explores how modern racial attitudes shape and are shaped by the places in which people live.

Using in-depth survey data and information from focus groups with members of L.A.’s largest racial and ethnic groups, Won’t You Be My Neighbor? explores why Los Angeles remains a segregated city. Charles finds that people of all backgrounds prefer both racial integration and a critical mass of same-race neighbors. When asked to reveal their preferred level of racial integration, people of all races show a clear and consistent order of preference, with whites considered the most highly desired neighbors and blacks the least desirable. This is even true among recent immigrants who have little experience with American race relations. Charles finds that these preferences, which are driven primarily by racial prejudice and minority-group fears of white hostility, taken together with financial considerations, strongly affect people’s decisions about where they live. Still, Charles offers reasons for optimism: over time and with increased exposure to other racial and ethnic groups, people show an increased willingness to live with neighbors of other races.

In a racially and ethnically diverse city, segregated neighborhoods can foster distrust, reinforce stereotypes, and agitate inter-group tensions. Won’t You Be My Neighbor? zeroes in on segregated neighborhoods to provide a compelling examination of the way contemporary racial attitudes shape, and are shaped by, the places where we live.

CAMILLE ZUBRINSKY CHARLES is associate professor of sociology and faculty associate director of the Center for Africana Studies at the University of Pennsylvania.

"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.

Perhaps the most alarming phenomenon in American cities has been the transformation of many neighborhoods into isolated ghettos where poverty is the norm and violent crime, drug use, out-of-wedlock births, and soaring school dropout rates are rampant. Public concern over these destitute areas has focused on their most vulnerable inhabitants—children and adolescents. How profoundly does neighborhood poverty endanger their well-being and development? Is the influence of neighborhood more powerful than that of the family? Neighborhood Poverty approaches these questions with an insightful and wide-ranging investigation into the effect of community poverty on children's physical health, cognitive and verbal abilities, educational attainment, and social adjustment.

This two-volume set offers the most current research and analysis from experts in the fields of child development, social psychology, sociology and economics. Drawing from national and city-based sources, Volume I reports the empirical evidence concerning the relationship between children and community. As the essays demonstrate, poverty entails a host of problems that affects the quality of educational, recreational, and child care services.Poor neighborhoods usually share other negative features—particularly racial segregation and a preponderance of single mother families—that may adversely affect children. Yet children are not equally susceptible to the pitfalls of deprived communities. Neighborhood has different effects depending on a child's age, race, and gender, while parenting techniques and a family's degree of community involvement also serve as mitigating factors.

Volume II incorporates empirical data on neighborhood poverty into discussions of policy and program development. The contributors point to promising community initiatives and suggest methods to strengthen neighborhood-based service programs for children. Several essays analyze the conceptual and methodological issues surrounding the measurement of neighborhood characteristics. These essays focus on the need to expand scientific insight into urban poverty by drawing on broader pools of ethnographic, epidemiological, and quantitative data. Volume II explores the possibilities for a richer and more well-rounded understanding of neighborhood and poverty issues.

To grasp the human cost of poverty, we must clearly understand how living in distressed neighborhoods impairs children's ability to function at every level. Neighborhood Poverty explores the multiple and complex paths between community, family, and childhood development. These two volumes provide and indispensable guide for social policy and demonstrate the power of interdisciplinary social science to probe complex social issues.

JEANNE BROOKS-GUNN is Virginia and Leonard Marx Professor of Child Development at Teachers College, Columbia University. She is also director of the Center for Children and Families and founder of the Adolescent Study Program at Teachers College.

GREG J. DUNCAN is professor of education and social policy and a faculty associate in the Institute for Policy Research at Northwestern University. He is also faculty affiliate of the Northwestern University/University of Chicago Joint Center for Poverty Research.

J. LAWRENCE ABER is director of the National Center for Children in Poverty at the Columbia School of Public Health, Columbia University.

CONTRIBUTORS:Daniel Aaronson, Prudence Brown, Linda M. Burton, Thomas D. Cook, Claudia J. Coulton, Nancy Darling, Serdar M. Degirmencioglu, Frank M. Furstenberg Jr., Martha A. Gephart, Mary Elizabeth Hughes, Robin L. Jarrett, Sheila B. Kamerman, Tedd Jay Kochman, Jill E. Korbin, Tama Leventhal, Paul A. McDermott, Jeffrey D. Morenoff, Townsand Price-Spratlen, Harold A. Richman, Robert J. Sampson,  Margaret Beale Spencer, Shobha C. Shagle, Laurence Steinberg.

Perhaps the most alarming phenomenon in American cities has been the transformation of many neighborhoods into isolated ghettos where poverty is the norm and violent crime, drug use, out-of-wedlock births, and soaring school dropout rates are rampant. Public concern over these destitute areas has focused on their most vulnerable inhabitants—children and adolescents. How profoundly does neighborhood poverty endanger their well-being and development? Is the influence of neighborhood more powerful than that of the family? Neighborhood Poverty: Context and Consequences for Children approaches these questions with an insightful and wide-ranging investigation into the effect of community poverty on children's physical health, cognitive and verbal abilities, educational attainment, and social adjustment.

This two-volume set offers the most current research and analysis from experts in the fields of child development, social psychology, sociology and economics. Drawing from national and city-based sources, Volume I reports the empirical evidence concerning the relationship between children and community. As the essays demonstrate, poverty entails a host of problems that affects the quality of educational, recreational, and child care services. Poor neighborhoods usually share other negative features—particularly racial segregation and a preponderance of single mother families—that may adversely affect children. Yet children are not equally susceptible to the pitfalls of deprived communities. Neighborhood has different effects depending on a child's age, race, and gender, while parenting techniques and a family's degree of community involvement also serve as mitigating factors.

Volume II incorporates empirical data on neighborhood poverty into discussions of policy and program development. The contributors point to promising community initiatives and suggest methods to strengthen neighborhood-based service programs for children. Several essays analyze the conceptual and methodological issues surrounding the measurement of neighborhood characteristics. These essays focus on the need to expand scientific insight into urban poverty by drawing on broader pools of ethnographic, epidemiological, and quantitative data. Volume II explores the possibilities for a richer and more well-rounded understanding of neighborhood and poverty issues.

To grasp the human cost of poverty, we must clearly understand how living in distressed neighborhoods impairs children's ability to function at every level. Neighborhood Poverty explores the multiple and complex paths between community, family, and childhood development. These two volumes provide and indispensible guide for social policy and demonstrate the power of interdisciplinary social science to probe complex social issues.

JEANNE BROOKS-GUNN is Virginia and Leonard Marx Professor of Child Development at Teachers College, Columbia University. She is also director of the Center for Children and Families and founder of the Adolescent Study Program at Teachers College.

GREG J. DUNCAN is professor of education and social policy and a faculty associate in the Institute for Policy Research at Northwestern University. He is also faculty affiliate of the Northwestern University/University of Chicago Joint Center for Poverty Research.

J. LAWRENCE ABER is director of the National Center for Children in Poverty at the Columbia School of Public Health, Columbia University.

CONTRIBUTORS: Daniel Aaronson, LaRue Allen, Prudence Brown, Linda M. Burton, P. Lindsay Chase-Lansdale, Elizabeth Clifford, Steven P. Cole, James P. Connell, Thomas D. Cook, Claudia J. Coulton, Warren E. Crichlow, Nancy Darling, Serdar M. Degirmencioglu, Frank M. Furstenberg Jr., Martha A. Gephart, Rachel A Gordon, Bonnie L. Halpern-Felsher, Mary Elizabeth Hughes, Robin L. Jarrett, Stephanie M. Jones, Sheila B. Kamerman, Pamela K. Klebanov, Tedd Jay Kochman, Jill E. Korbin, Jeffrey S. Lehman, Tama Leventhal, Paul A. McDermott, Jeffrey D. Morenoff, Townsand Price-Spratlen, Harold A. Richman, Robert J. Sampson, Edward Seidman, Shobha C. Shagle, Timothy M. Smeeding, Margaret Beale Spencer, Laurence Steinberg, Dena Phillips Swanson, Peter A. Usinger.

This book cuts through the powerful mythology surrounding Los Angeles to reveal the causes of inequality in a city that has weathered rapid population change, economic restructuring, and fractious ethnic relations. The sources of disadvantage and the means of getting ahead differ greatly among the city's myriad ethnic groups. The demand for unskilled labor is stronger here than in other cities, allowing Los Angeles's large population of immigrant workers with little education to find work in light manufacturing and low-paid service jobs.

A less beneficial result of this trend is the increased marginalization of the city's low-skilled black workers, who do not enjoy the extended ethnic networks of many of the new immigrant groups and who must contend with persistent negative racial stereotypes.

Patterns of residential segregation are also more diffuse in Los Angeles, with many once-black neighborhoods now split evenly between blacks, Hispanics, Asians, and other minorities. Inequality in Los Angeles cannot be reduced to a simple black-white divide. Nonetheless, in this thoroughly multicultural city, race remains a crucial factor shaping economic fortunes.

LAWRENCE D. BOBO is professor of sociology and Afro-American studies at Harvard University.

MELVIN L. OLIVER is vice president of the Ford Foundation. He is responsible for overseeing the Asset Building and Community Development Program.

JAMES H. JOHNSON JR. is William Rand Kenan Jr. Distinguished Professor of Management, Sociology, and Public Policy and director of the  Urban Investment Strategies Center in the Kenan Institute in the Kenan-Flager Business School at the University of North Carolina at Chapel Hill.

ABEL VALENZUELA JR. is assistant professor of urban planning and Chicana/o studies at the University of California, Los Angeles. He is also associate director of the Center for the Study of Urban Poverty, Institute for Social Science Research.

CONTRIBUTORS:  Elisa Jayne Bienenstock, Camille Zubrinksi Charles, Walter C. Farrell Jr.,  Jennifer L. Glanville,  Elizabeth Gonzalez,  David M. Grant,  Tarry Hum, Devon Johnson,  Michael I. Lichter,  Julie E. Press,  Michael A. Stoll, Susan A. Suh,  Jennifer A. Stoloff.  

A Volume in the Multi-City Study of Urban Inequality