What can the disciplines of political science and economics learn from one another? Political scientists have recently begun to adapt economic theories of exchange, trade, and competition to the study of legislatures, parties, and voting. At the same time, some of the most innovative and influential thinkers in economics have crossed the boundaries of their discipline to explore the classic questions of political science. Competition and Cooperation features six of these path-breaking scholars, all winners of the Nobel Prize for Economics, in a series of conversations with more than a dozen distinguished political scientists. The discussions analyze, adapt, and extend the Nobelists' seminal work, showing how it has carried over into political science and paved the way for fruitful cooperation between the two disciplines.

The exchanges span all of the major conceptual legacies of the Nobel laureates: Arrow's formalization of the problems of collective decisions; Buchanan's work on constitutions and his critique of majority rule; Becker's theory of competition among interest groups; North's focus on insecure property rights and transaction costs; Simon's concern with the limits to rationality; and Selten's experimental work on strategic thinking and behavior.

As befits any genuine dialogue, the traffic of ideas and experiences runs both ways. The Nobel economists have had a profound impact upon political science, but, in addressing political questions, they have also had to rethink many settled assumptions of economics. The standard image of economic man as a hyper-rational, self-interested creature, acting by and for for himself, bears only a passing resemblance to man as a political animal. Several of the Nobelists featured in this volume have turned instead to the insights of cognitive science and institutional analysis to provide a more recognizable portrait of political life.

The reconsideration of rationality and the role of institutions,in economics as in politics, raises the possibility of a shared approach to individual choice and institutional behavior that gives glimmers of a new unity in the social sciences. Competition and Cooperation demonstrates that the most important work in both economics and political science reflects a marriage of the two disciplines.

JAMES E. ALT is Frank G. Thomson Professor of Government and director of the Center of Basic Research in the Social Sciences at Harvard University.

MARGARET LEVI is professor of political science and Harry Bridges Chair in Labor Studies, University of Washington, Seattle. She is also director of the University of Washington Center for Labor Studies.

ELINOR OSTROM is codirector of the Workshop in Political Theory and Policy Analysis and the Center for the Study of Institutions, Population, and Environmental Change at Indiana University, Bloomington. She is also Arthur F. Bentley Professor of Political Science.

CONTRIBUTORS: James E. Alt, Kenneth J. Arrow, Gary S. Becker, James M. Buchanan, Norman Frohlich, Barbara Geddes, Robert E. Goodin, Russell Hardin, Bryan D. Jones, Robert O. Keohane, David D. Laitin, Margaret Levi, Douglass C. North, Joe A. Oppenheimer, Elinor Ostrom, Vincent Ostrom, Ronald Rogowski, Norman Schofield, Thomas Schwartz, Reinhard Selten, Kenneth A. Shepsle, and Herbert A. Simon.

It is a widely held belief today that there are too many lawsuits, too many lawyers, too much law. As readers of this engaging and provocative essay will discover, the evidence for a "litigation explosion" is actually quite ambiguous. But the American legal profession has become extremely large, and it seems clear that the scope and reach of legal process have indeed increased greatly.

How can we best understand these changes? Lawrence Friedman focuses on transformations in American legal culture—that is, people's beliefs and expectations with regard to law. In the early nineteenth century, people were accustomed to facing sudden disasters (disease, accidents, joblessness) without the protection of social and private insurance. The uncertainty of life and the unavailability of compensation for loss were mirrored in a culture of low legal expectations.

Medical, technical, and social developments during our own century have created a very different set of expectations about life, again reflected in our legal culture. Friedman argues that we are moving toward a general expectation of total justice, of recompense for all injuries and losses that are not the victim's fault. And the expansion of legal rights and protections in turn creates fresh expectations, a cycle of demand and response.

This timely and important book articulates clearly, and in nontechnical language, the recent changes that many have sensed in the American legal system but that few have discussed in so powerful and sensible a way.

Total Justice is the third of five special volumes commissioned by the Russell Sage Foundation to mark its seventy-fifth anniversary.

LAWRENCE M. FRIEDMAN is Marion Rice Kirkwood Professor of Law at Stanford University.

Examines the impact of social forces on the legal system and how the rules and orders promulgated by that legal system affect social behavior. Dr. Friedman explores the relationship between class structure and the work of legal systems in the light of the existing literature and analyzes the influence of the cultural elements contained in a legal system. In a comprehensive analysis of the concept of legal culture, the author sheds new light on the development of our legal norms and the types of legal systems which prevail in a democracy.

LAWRENCE M. FRIEDMAN is Marion Rice Kirkwood Professor of Law at Stanford University.

Friedlander and Burtless teach us why welfare reform will not be easy. Their sobering assessment of job training programs willenlighten a debate too often dominated by wishful thinking and political rhetoric. Look for their findings to be cited for many years to come. —Douglas Besharov, American Enterprise Institute

A methodologically astute study that sheds considerable light on the potential for and limits to raising the employment and earnings of welfare recipients and provides benchmarks against which the impacts of later programs can be compared. —Journal of Economic Literature

With welfare reforms tested in almost every state and plans for a comprehensive federal overall on the horizon, it is increasingly important for Americans to understand how policy changes are likely to affect the lives of welfare recipients. Five Years After tells the story of what happened to the welfare recipients who participated in the influential welfare-to-work experiments conducted by several states in the mid-1980s.The authors review the distinctive goals and procedures of evaluations performed in Arkansas, Baltimore, San Diego, and Virginia, and then examine five years of follow-up data to determine whether the initial positive impact on employment, earnings, and welfare costs held up over time. The results were surprisingly consistent. Low-cost programs that saved money by getting individuals into jobs quickly did little to reduce poverty in the long run. Only higher-cost educational programs enabled welfare recipients to hold down jobs successfully and stay off welfare.

Five Years After ends speculation about the viability of the first generation of employment programs for welfare recipients, delineates the hard choices that must be made among competing approaches, and provides a well-documented foundation for building more comprehensive programs for the next generation. A sobering tale for welfare reformers of all political persuasions, this book poses a serious challenge to anyone who promises to end welfare dependency by cutting welfare budgets.

DANIEL FRIEDLANDER is senior research associate at the Manpower Demonstration Research Corporation.

GARY BURTLESS is senior fellow in the economic studies program at The Brookings Institution.

During the 1970s, several striking population shifts attracted widespread attention and colorful journalistic labels. Urban gentrification, the rural renaissance, the rise of the Sunbelt—these phenomena signaled major reversals in long-term patterns of population distribution. In Regional and Metropolitan Growth and Decline in the United States, authors Frey and Speare place such reversals in context by examining a rich array of census data.

This comprehensive study describes new population distribution patterns, explores their consequences, and evaluates competing explanations of current trends. The authors also provide an in-depth look at the changing race, status, and household demographics of the nation's largest cities and discuss the broad societal forces precipitating such changes. Frey and Speare conclude that the 1970s represented a "transition decade" in the history of population distribution and that patterns now emerging do not suggest a return to the past.

With impressive scope and detail, this volume offers an unmatched picture of regional growth and decline across the United States.

WILLIAM H. FREY is faculty associate at the Population Studies Center, The University of Michigan.

ALDEN SPEARE, JR. is professor of sociology at Brown University.

A volume in the Population of the United States in the 1980s series.

A Volume in the RSF Census Series

Examines an alternative to the old patterns of living and working in the prevailing social system—the communal work place where work, recreation, and living space are brought together in a unified setting. The authors deal with a number of questions the communal work group faces, including the selection of projects, the choice of technologies and legal structure, and the means for determining economic viability. Past American and European communitarian movements are traced, as well as the nature and limitations of the new community experiments of the 1960s and 1970s.

DAVID FRENCH is assistant professor of economics at Johnson State College, Vermont.

ELENA FRENCH is assistant professor of social sciences at Johnson State College, Vermont.

Attempts to study corporation philanthropy inevitably prove frustrating, for it is a subject surrounded by rhetoric and almost entirely devoid of hard facts.

Marion R. Fremont-Smith's concise appraisal of corporation philanthropy takes a close look at the donative policies of corporations and their methods of giving. Concentrating on the legal and historical setting, as well as corporation philanthropy in practice, the author analyzes recent expansion in the field of traditional philanthropy and the accompanying shift in public attitude toward the responsibility of business corporations. The book shows how this new attitude has brought with it a reappraisal of the philosophical and legal bases for corporate action in the social sphere. In conclusion, Mrs. Fremont-Smith calls for a more imaginative and independent definition of the objectives of corporate philanthropic policies and not merely a continuing series of ill-considered defensive reactions.

MARION R. FREMONT-SMITH is a practicing attorney in Boston.

The American economy is in danger of leaving its low-skilled workers behind. In the last two decades, the wages and employment levels of the least educated and experienced workers have fallen disastrously. Where willing workers once found ready employment at reasonable wages, our computerized, service-oriented economy demands workers who can read and write, master technology, deal with customers, and much else. Improved education and training will alleviate this problem in the long run, but educating the new workforce will take a substantial national investment over many years. In the meantime, we face increasingly acute questions about how to include low-skill workers in today's economy.

Generating Jobs takes a hard look at these questions, and asks whether anything can be done to improve the lot of low-skilled workers by intervening in the labor market on their behalf. These micro demand-side policies seek to improve wages and employment levels—either by lowering the costs of hiring low-skilled workers through employer subsidies, or by raising wage levels, benefit levels, or hours of employment, or by providing employment via government jobs. Although these policies are not currently popular in the U.S., they have long been used in many countries. Generating Jobs provides a clear-eyed assessment of this history, and asks if any of these policies might be applicable to the current problems of low-skilled workers in the United States.

The results are surprising. Several recently touted panaceas turn out to be costly and ineffective in the American labor market. Enterprise zones, for instance, are an expensive way of moving jobs into areas of high unemployment, costing as much as $60,000 per job. Similarly, job-sharing, which has had uneven success in Europe, turns out to be ill-suited to conditions in the U.S., where wages are relatively low and workers need to work long hours to maintain income. On the other hand, a number of older, less flashy policies turn out to have real, if modest, benefits. Wage subsidies have increased employment among qualifying workers, and public employment policies can increase the number of workers from targeted groups working during the program.

While acknowledging that many solutions are counterproductive, this definitive review of active labor market policies shows that many programs can offer real help. More than any rhetoric, Generating Jobs is the best guide to future action and a serious response to those who claim that nothing can be done.

RICHARD B. FREEMAN is Herbert Ascherman Professor of Economics at Harvard University. He is also director of labor studies at the National
Bureau of Economic Research and director of the Program for Discontinuous Economics at the London School of Economics.

PETER GOTTSCHALK is professor of economics at Boston College and research affiliate at the Institute for Research on Poverty at the University of Wisconsin, Madison.

CONTRIBUTORS: Richard B. Freeman, Peter Gottschalk, Rebecca M. Blank, Edward M Gramlich, Colleen M. Heflin, Harry J. Holzer, Susan N. Houseman, Lawrence F. Katz, Douglas L. Kruse, and Stephen Nickell.

The U.S. labor market is the most laissez faire of any developed nation, with a weak social safety net and little government regulation compared to Europe or Japan. Some economists point to this hands-off approach as the source of America’s low unemployment and high per-capita income. But the stagnant living standards and rising economic insecurity many Americans now face take some of the luster off the U.S. model. In America Works, noted economist Richard Freeman reveals how U.S. policies have created a labor market remarkable both for its dynamism and its disparities.

America Works takes readers on a grand tour of America’s exceptional labor market, comparing the economic institutions and performance of the United States to the economies of Europe and other wealthy countries. The U.S. economy has an impressive track record when it comes to job creation and productivity growth, but it isn’t so good at reducing poverty or raising the wages of the average worker. Despite huge gains in productivity, most Americans are hardly better off than they were a generation ago. The median wage is actually lower now than in the early 1970s, and the poverty rate in 2005 was higher than in 1969. So why have the benefits of productivity growth been distributed so unevenly? One reason is that unions have been steadily declining in membership. In Europe, labor laws extend collective bargaining settlements to non-unionized firms. Because wage agreements in America only apply to firms where workers are unionized, American managers have discouraged unionization drives more aggressively. In addition, globalization and immigration have placed growing competitive pressure on American workers. And boards of directors appointed by CEOs have raised executive pay to astronomical levels. Freeman addresses these problems with a variety of proposals designed to maintain the vigor of the U.S. economy while spreading more of its benefits to working Americans. To maintain America’s global competitive edge, Freeman calls for increased R&D spending and financial incentives for students pursuing graduate studies in science and engineering. To improve corporate governance, he advocates licensing individuals who serve on corporate boards. Freeman also makes the case for fostering worker associations outside of the confines of traditional unions and for establishing a federal agency to promote profit-sharing and employee ownership.

Assessing the performance of the U.S. job market in light of other developed countries’ recent history highlights the strengths and weaknesses of the free market model. Written with authoritative knowledge and incisive wit, America Works provides a compelling plan for how we can make markets work better for all Americans.

RICHARD B. FREEMAN is Herbert S. Ascherman Professor of Economics at Harvard University.

A Volume in the the Russell Sage Foundation's Centennial Series

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.