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Cover image of the book Asking About Prices
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Asking About Prices

A New Approach to Understanding Price Stickiness
Authors
Alan S. Blinder
Elie R. D. Canetti
David E. Lebow
Jeremy B. Rudd
Hardcover
$44.95
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6 in. × 9 in. 400 pages
ISBN
978-0-87154-121-5
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Why do consumer prices and wages adjust so slowly to changes in market conditions? The rigidity or stickiness of price setting in business is central to Keynesian economic theory and a key to understanding how monetary policy works, yet economists have made little headway in determining why it occurs. Asking About Prices offers a groundbreaking empirical approach to a puzzle for which theories abound but facts are scarce. Leading economist Alan Blinder, along with co-authors Elie Canetti, David Lebow, and Jeremy B. Rudd, interviewed a national, multi-industry sample of 200 CEOs, company heads, and other corporate price setters to test the validity of twelve prominent theories of price stickiness. Using everyday language and pertinent scenarios, the carefully designed survey asked decisionmakers how prominently these theoretical concerns entered into their own attitudes and thought processes. Do businesses tend to view the costs of changing prices as prohibitive? Do they worry that lower prices will be equated with poorer quality goods? Are firms more likely to try alternate strategies to changing prices, such as warehousing excess inventory or improving their quality of service? To what extent are prices held in place by contractual agreements, or by invisible handshakes?

Asking About Prices offers a gold mine of previously unavailable information. It affirms the widespread presence of price stickiness in American industry, and offers the only available guide to such business details as what fraction of goods are sold by fixed price contract, how often transactions involve repeat customers, and how and when firms review their prices. Some results are surprising: contrary to popular wisdom, prices do not increase more easily than they decrease, and firms do not appear to practice anticipatory pricing, even when they can foresee cost increases. Asking About Prices also offers a chapter-by-chapter review of the survey findings for each of the twelve theories of price stickiness. The authors determine which theories are most popular with actual price setters, how practices vary within different business sectors, across firms of different sizes, and so on. They also direct economists' attention toward a rationale for price stickiness that does not stem from conventional theory, namely a strong reluctance by firms to antagonize or inconvenience their customers. By illuminating how company executives actually think about price setting, Asking About Prices provides an elegant model of a valuable new approach to conducting economic research.

ALAN S. BLINDER is Gordon S. Rentschler Memorial Professor of Economics at Princeton University, where he has taught since 1971. He also founded and directs Princeton’s Center for Economic Policy Studies. He has served as vice chairman of the Board of Governors of the Federal Reserve System and as a member of the president’s Council of Economic Advisers.

ELIE R. D. CANETTI is an economist for the International Monetary Fund. He previously worked at the World Bank and the United States Treasury.

DAVID E. LEBOW is an economist at the Board of Governors of the Federal Reserve System.

JEREMY B. RUDD is senior economist at the Council of Economic Advisers, Washington, D.C.

 

 

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Cover image of the book Insufficient Funds
Books

Insufficient Funds

Savings, Assets, Credit, and Banking among Low-Income Households
Editors
Rebecca M. Blank
Michael S. Barr
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$34.95
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6.63 in. × 9.25 in. 336 pages
ISBN
978-0-87154-470-4
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"Insufficient Funds is a comprehensive presentation of what is known about the asset holdings and use of financial services by low-income U.S. households, the factors that might influence their choices in this arena, and the potential for private- and public-sector initiatives to help the poor build wealth and obtain better financial services. All of the authors are top experts in their fields and the volume is well-written, balanced, and cohesive. Insufficient Funds is undoubtedly the best single source for readers seeking a well-informed, thoughtful treatment of the issues."
-JOHN P. CASKEY, Swarthmore College

"This thorough volume from leading scholars provides a textured portrait of the relationships low-income households maintain with formal and informal financial services. Ranging from the latest theory to comparative data analysis to policy innovation, Insufficient Funds is a must read for any scholar, student, or policymaker interested in credit, savings, or asset accumulation in their role as barriers to escaping poverty."
-DALTON CONLEY, New York University

One in four American adults doesn’t have a bank account. Low-income families lack access to many of the basic financial services middle-class families take for granted and are particularly susceptible to financial emergencies, unemployment, loss of a home, and uninsured medical problems. Insufficient Funds explores how institutional constraints and individual decisions combine to produce this striking disparity and recommends policies to help alleviate the problem.

Mainstream financial services are both less available and more expensive for low-income households. High fees, minimum-balance policies, and the relative scarcity of banks in poor neighborhoods are key factors. Michael Barr reports the results of an in-depth study of financial behavior in 1,000 low- and moderate-income families in metropolitan Detroit. He finds that most poor households have bank accounts, but combine use of mainstream services with alternative options such as money orders, pawnshops, and payday lenders. Barr suggests that a tax credit for banks serving primarily disadvantaged customers could facilitate greater equality in the private financial sector.

Drawing on evidence from behavioral economics, Sendhil Mullainathan and Eldar Shafir show that low-income individuals exhibit many of the same patterns and weaknesses in financial decision making as middle-class individuals and could benefit from many of the same financial aids. They argue that savings programs that automatically enroll participants and require them to actively opt out in order to leave the program could drastically increase savings ability. Ronald Mann demonstrates that significant changes in the credit market over the past fifteen years have allowed companies to expand credit to a larger share of low-income families. Mann calls for regulations on credit card companies that would require greater disclosure of actual interest rates and fees. Raphael Bostic and Kwan Lee find that while home ownership has risen dramatically over the past twenty years, elevated risks for low-income families—such as foreclosure—may well outweigh the benefits of owning a home.

The authors ultimately argue that if we want to demand financial responsibility from low-income households, we have an obligation to assure that these families have access to the banking, credit, and savings institutions that are readily available to higher-income families. Insufficient Funds highlights where and how access is blocked and shows how government policy and individual decisions could combine to eliminate many of these barriers in the future.

REBECCA M. BLANK is the Robert S. Kerr Senior Fellow at the Brookings Institution.

MICHAEL S. BARR is professor of law at the University of Michigan Law School.

CONTRIBUTORS: Raphael W. Bostic, Daryl Collins, Kwan Ok Lee, Ronald J. Mann, Jonathan Morduch, Sendhil Mullainathan, Una Okonkwo Osili, Anna L. Paulson, Daniel Schneider, John Karl Scholz, Ananth Seshadri, Eldar Shafir, Michael Sherraden, Peter Tufano.

A Volume in the National Poverty Center Series on Poverty and Public Policy

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Cover image of the book The Market Comes to Education in Sweden
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The Market Comes to Education in Sweden

An Evaluation of Sweden's Surprising School Reforms
Authors
Anders Björklund
Melissa A. Clark
Per-Anders Edin
Peter Fredriksson
Alan B. Krueger
Hardcover
$37.50
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6 in. × 9 in. 180 pages
ISBN
978-0-87154-140-6
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"Given the global marketplace of ideas for reforming education systems, much can be learned from the experiences of other countries. In this excellent study of the Swedish education system, five distinguished economists provide a thorough, careful, and readable economic analysis of Sweden's experience with educational decentralization and market- based reforms. The authors' analysis of the labor market for teachers, the role of resources, and expanded parental choice of schools should be of great interest to educational policy analysts and researchers in the United States and elsewhere."
-HELEN LADD, Edgar Thompson Professor of Public Policy Studies and professor of economics, Duke University

"This is a truly interesting book on the economics of education, which has direct relevance to the way education systems are organized across the world. The authors put together a series of chapters containing original research, each showing important consequences of the market- oriented education reforms that took place in Sweden. They clearly demonstrate the importance of education and education policy in affecting the economic and social welfare of individuals and society as a whole. The Market Comes to Education in Sweden is an essential read for anyone interested in contemporary issues in the economics of education and in the way that changes in education policy matter for economic and social outcomes."
-STEPHEN MACHIN, professor of economics, University College London, research director, Centre for Economic Performance, and director, Centre for the Economics of Education, London School of Economics

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.

 

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Cover image of the book The Military Intervenes
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The Military Intervenes

Case Studies in Political Development
Editor
Henry Bienen
Hardcover
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6 in. × 9 in. 200 pages
ISBN
978-0-87154-110-9
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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.

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Cover image of the book Academic and Entrepreneurial Research
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Academic and Entrepreneurial Research

Consequences of Diversity in Federal Evaluation Studies
Authors
Irene Nagel Bernstein
Howard E. Freeman
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6 in. × 9 in. 224 pages
ISBN
978-0-87154-109-3
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As social action programs in health, education, and welfare have expanded, interest has grown in evaluating their implementation and effectiveness. Policymakers and social planners--at all levels of government and in the private sector--are currently confronted with the problem of evaluating the large number of human service programs that compete for available resources.

Academic and Entrepreneurial Research presents a systematic study of the expenditure of federal funds for evaluation research. It reviews federally-supported evaluations of programs, including evaluations of social change experiments and research-demonstration programs funded by the various executive departments of the federal government. Evaluation studies of these large-scale programs vary in scope, quality, and potential utility. Bernstein and Freeman examine all projects initiated during fiscal year 1970 in order to understand better the methods employed, the types of persons engaged in such research, and expectations regarding the utilization of findings.

The book provides data about "high" and "low" quality evaluation research and contains recommendations for restructuring the entire evaluation research enterprise in light of the findings.

ILENE NAGEL BERNSTEIN is assistant professor of sociology at Indiana University.

HOWARD E. FREEMAN is director of the Institute for Social Science Research and professor of sociology at the University of California, Los Angeles.

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Cover image of the book Divergent Paths
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Divergent Paths

Economic Mobility in the New American Labor Market
Authors
Annette Bernhardt
Martina Morris
Mark S. Handcock
Marc A. Scott
Hardcover
$42.50
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6 in. × 9 in. 280 pages
ISBN
978-0-87154-150-5
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Winner of the 2001 Richard A. Lester prize for Outstanding Book in Labor Economics and Industrial Relations from Princeton University

Winner of the Cornell Center for the Study of Inequality Distinguished Book Award

"This book documents the downfall of upward mobility in the United States. It is a magnificent blend of raw imagination, new empirical analysis, and existing knowledge, with a topic of fundamental importance: the long-term welfare of American workers. The result is a compelling case that the American dream has become nothing more than a cruel mirage for most workers. This book is essential for labor economists and sociologists, public policymakers, human resources professionals, and journalists."
-DAVID E. BLOOM, Harvard University

"Divergent Paths is the book about the American labor market we have all been waiting for. This meticulous empirical inquiry comes closer than anything else I know to definitively answering an entire battery of questions regarding wage inequality and upward mobility in today's post- industrial economy. This magnificently researched and written work- based on a superb statistical analysis of the wage and employment trajectories of two cohorts of young workers-should be mandatory reading for every social scientist who has ever wanted to know who the winners and losers are in the U.S. labor market."
-BARRY BLUESTONE, Northeastern University

"This highly readable and detailed analysis of economic mobility examines the experiences of young men who entered the labor market in very different economic contexts. The authors demonstrate that prospects for long-term wage growth have deteriorated dramatically over the last thirty years for most men. Judicious use of graphs makes the rigorous empirical analysis accessible to non-specialists. This book is 'must reading' for anyone who wants to understand the economic processes generating inequality today."
-EILEEN APPELBAUM, Economic Policy Institute

The promise of upward mobilitythe notion that everyone has the chance to get aheadis one of this country's most cherished ideals, a hallmark of the American Dream. But in today's volatile labor market, the tradition of upward mobility for all may be a thing of the past. In a competitive world of deregulated markets and demanding shareholders, many firms that once offered the opportunity for advancement to workers have remade themselves as leaner enterprises with more flexible work forces. Divergent Paths examines the prospects for upward mobility of workers in this changed economic landscape. Based on an innovative comparison of the fortunes of two generations of young, white men over the course of their careers, Divergent Paths documents the divide between the upwardly mobile and the growing numbers of workers caught in the low-wage trap.

The first generation entered the labor market in the late 1960s, a time of prosperity and stability in the U.S. labor market, while the second generation started work in the early 1980s, just as the new labor market was being born amid recession, deregulation, and the weakening of organized labor. Tracking both sets of workers over time, the authors show that the new labor market is more volatile and less forgiving than the labor market of the 1960s and 1970s. Jobs are less stable, and the penalties for failing to find a steady employer are more severe for most workers. At the top of the job pyramid, the new nomadshighly credentialed, well-connected workersregard each short-term project as a springboard to a better-paying position, while at the bottom, a growing number of retail workers, data entry clerks, and telemarketers, are consigned to a succession of low-paying, dead-end jobs.

While many commentators dismiss public anxieties about job insecurity as overblown, Divergent Paths carefully documents hidden trends in today's job market which confirm many of the public's fears. Despite the celebrated job market of recent years, the authors show that the old labor market of the 1960s and 1970s propelled more workers up the earnings ladder than does today's labor market. Divergent Paths concludes with a discussion of policy strategies, such as regional partnerships linking corporate, union, government, and community resources, which may help repair the career paths that once made upward mobility a realistic ambition for all American workers.

ANNETTE BERNHARDT is Senior Research Associate at the Center on Wisconsin Strategy, University of Wisconsin, Madison.

MARTINA MORRIS is the Blumstein-Jordan Professor of Sociology and Statistics at the University of Washington, Seattle.

MARK S. HANDCOCK is Professor of Statistics and Sociology in the Center for Statistics and the Social Sciences at the University of Washington, Seattle.

MARC A. SCOTT is Assistant Professor of Educational Statistics at the School of Education, New York University.

 

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Cover image of the book Politicians, Judges, and City Schools
Books

Politicians, Judges, and City Schools

Authors
Joel S. Berke
Margaret E. Goertz
Richard J. Coley
Hardcover
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6 in. × 9 in. 304 pages
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978-0-87154-108-6
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During the 1970s, a nationwide school finance reform movement—fueled by litigation challenging the constitutionality of state education funding laws—brought significant changes to the way many states finance their public elementary and secondary school systems. School finance reform poses difficult philosophical questions: what is the meaning of equality in educational opportunity and of equity in the distribution of tax burdens? But it also involves enormous financial complexity (for example, dividing resources among competing special programs) and political risk (such as balancing local control with the need for statewide parity).

For those states (like New York) that were slow to make changes a new decade has brought new constraints and complications. Sluggish economic growth, taxpayer revolts, reductions in federal aid, all affect education revenues. And the current concern with educational excellence may obscure the needs of the poor and educationally disadvantaged.

This book will provide New York’s policy makers and other concerned specialists with a better understanding of the political, economic, and equity issues underlying the school finance reform debate. It details existing inequities, evaluates current financing formulas, and presents options for change. Most important, for all those concerned with education and public policy in New York and elsewhere, it offers a masterful assessment of the trade-offs involved in developing reform programs that balance the conflicting demands of resource equalization, political feasibility, and fiscal responsibility.

"Synthesizes the political and fiscal research [on school finance reform] and applies it to the New York Context....A blueprint for how to redesign state school finance....A fine book." —Public Administration Review

"This is a book that lucidly discusses the issues in school finance and provides valuable reference material." —American Political Science Review

The late JOEL S. BERKE was director of the Education Policy Research Institute of Educational Testing
Service.

MARGARET E. GOERTZ is policy research scientist at Educational Testing Service.

RICHARD COLEY is research associate at Educational Testing Service.

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Cover image of the book Democracy, Inequality, and Representation
Books

Democracy, Inequality, and Representation

A Comparative Perspective
Editors
Pablo Beramendi
Christopher J. Anderson
Paperback
$45.00
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6 in. × 9 in. 448 pages
ISBN
978-0-87154-324-0
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“Pablo Beramendi and Christopher J. Anderson have assembled an all-star team to reflect on the politics of inequality in rich democracies. Breaking new ground in the quantitative study of the welfare state while pushing the boundaries of recent theorizing, the distinguished contributors to Democracy, Inequality, and Representation have produced readable, rewarding analyses of the leading issues in the field. An essential resource for experts on social policy, political economy, and electoral politics, as well as engaged readers simply wishing to understand why countries differ so much with regard to the priority placed on economic equality and security.”
—JACOB S. HACKER, professor of political science, Yale University 

“The unprecedented and sustained increase in income inequality across many countries has sparked interest and concern across the fields of social science. This excellent collection of papers represents state-of-the-art analysis of this new and growing inequality. Political parties play a central role, but inequality reflects the interactive effects of political and economic institutions working in diverse ways through popular preferences for redistribution, characteristics of the labor market, institutional complexity, political mobilization and participation, partisan polarization, and the public budget. No serious scholar in political economy should pass over Democracy, Inequality, and Representation.”
—JAMES E. ALT, Frank G. Thomson Professor of Government, Harvard University 

“Simply the best summary of the current state of knowledge both about the impact of politics on economic inequality and of inequality on politics. Combining perspectives from economics, sociology, and political science, Democracy, Inequality, and Representation is as rich in new insights as in new questions.”
—ADAM PRZEWORSKI, Carroll and Milton Petrie Professor of Politics, New York University

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.

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Cover image of the book Staircases or Treadmills?
Books

Staircases or Treadmills?

Labor Market Intermediaries and Economic Opportunity in a Changing Economy
Authors
Chris Benner
Laura Leete
Manuel Pastor
Hardcover
$42.50
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6 in. × 9 in. 312 pages
ISBN
978-0-87154-169-7
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"The Silicon Valley is seen as the exemplar of the new economy and Milwaukee represents the old. Yet are these labor markets truly different and if so in what ways? Staircases or Treadmills? takes on the challenge of answering this question and does so with a focus on those outside the relatively small elite who have prospered in the past decades. The original fieldwork and survey research reported in this important book adds to our knowledge of the role of institutions and personal networks in shaping outcomes. This is empirical research at its best."
-PAUL OSTERMAN, MIT Sloan School

"Staircases or Treadmills? is a carefully-researched, well-argued, important book. As more and more people turn to a variety of private and public organizations to help them find new or better jobs, the authors' deep understanding of intermediary types, market niches, and outcomes is a significant contribution. Some findings are surprising; all will be useful to researchers, activists, and policymakers concerned about how best to help low-income workers advance."
-RICHARD KAZIS, Jobs for the Future

"Staircases or Treadmills? presents a rich and detailed portrait of the workforce-intermediary landscape in two specific regional labor markets. It offers a useful framework for analyzing the services of workforce intermediaries that covers a wide range of organizational types. The book illuminates the growing influence of a range of organizations that play a role in mediating the hiring process in these two labor markets, and how these organizations have in turn influenced the labor-market prospects and outcomes of low- wage workers. This picture of the tremendous fragmentation, variability of service provision, and uneven quality among workforce-intermediary service providers illustrates the challenge that workers and employers face. Staircases or Treadmills? is essential reading for anyone interested in improving labor-market functioning and facilitating improved outcomes for low-income workers."
-MAUREEN CONWAY, The Aspen Institute

Globalization, technological change, and deregulation have made the American marketplace increasingly competitive in recent decades, but for many workers this “new economy” has entailed heightened job insecurity, lower wages, and scarcer benefits. As the job market has grown more volatile, a variety of labor market intermediaries—organizations that help job seekers find employment—have sprung up, from private temporary agencies to government “One-Stop Career Centers.” In Staircases or Treadmills? Chris Benner, Laura Leete, and Manuel Pastor investigate what approaches are most effective in helping workers to secure jobs with decent wages and benefits, and they provide specific policy recommendations for how job-matching organizations can better serve disadvantaged workers.

Staircases or Treadmills? is the first comprehensive study documenting the prevalence of all types of labor market intermediaries and investigating how these intermediaries affect workers’ employment opportunities. Benner, Leete, and Pastor draw on years of research in two distinct regional labor markets—“old economy” Milwaukee and “new economy” Silicon Valley—including a first-of-its-kind random survey of the prevalence and impacts of intermediaries, and a wide range of interviews with intermediary agencies’ staff and clients. One of the main obstacles that disadvantaged workers face is that social networks of families and friends are less effective in connecting job-seekers to stable, quality employment. Intermediaries often serve as a substitute method for finding a job.  Which substitute is chosen, however, matters: The authors find that the most effective organizations—including many unions, community colleges, and local non-profits—actively foster contacts between workers and employers, tend to make long-term investments in training for career development, and seek to transform as well as satisfy market demands. But without effective social networks to help workers locate the best intermediaries, most rely on private temporary agencies and other organizations that offer fewer services and, statistical analysis shows, often channel their participants into jobs with low wages and few benefits. Staircases or Treadmills? suggests that, to become more effective, intermediary organizations of all types need to focus more on training workers, teaching networking skills, and fostering contact between workers and employers in the same industries.

A generation ago, rising living standards were broadly distributed and coupled with relatively secure employment. Today, many Americans fear that heightened job insecurity is overshadowing the benefits of dynamic economic growth. Staircases or Treadmills? is a stimulating guide to how private and public job-matching institutions can empower disadvantaged workers to share in economic progress.

CHRIS BENNER is assistant professor of urban and economic geography at Pennsylvania State University.

LAURA LEETE is the Fred H. Paulus Director of Public Policy Research and associate professor of economics and public policy at Willamette University.

MANUEL PASTOR is a professor of geography and American Studies and ethnicity at the University of Southern California.

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Cover image of the book The Two New Yorks
Books

The Two New Yorks

State-City Relations in the Changing Federal System
Editors
Gerald Benjamin
Charles Brecher
Hardcover
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6 in. × 9 in. 576 pages
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978-0-87154-107-9
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Over the past eight years, a marked shift in the national political mood has substantially reduced the federal government's involvement in ameliorating urban problems and enhanced the prominence of state and local governments in the domestic policy arena. Many states and big cities have been forced to reassess their traditionally vexed relationships.

Nowhere has this drama been played out more stormily than in New York. In The Two New Yorks, experts from government, the academy, and the non-profit sector examine aspects of an interaction that has a major impact on the performance of state and city institutions. The analyses presented here explore current state-city strategies for handling such troubling policy areas as education, health care, and housing. Attention is also given to important contextual factors such as economic and demographic trends, and to structural features such as the political framework, relationships with the national government, and the system of public finance.

Despite its uniquely large scope, the drama of the new New Yorks parallels or presages issues faced by virtually all large cities and their states. This unprecedented study makes a vital contribution in an era of declining federal aid and pressing urban need.

GERALD BENJAMIN is at SUNY New Paltz.

CHARLES BRECHER is at New York University.

CONTRIBUTORS: Richard D. Alba, Mary Jo Bane, Gerald Benjamin, Robert Berne, Susan Blamk, Barbara B. Blum, Matthew Drennan, Barbara Gordon Espejo, Ester Fuchs, Cynthia B. Green, James M. Hartman, Raymond D. Horton, Sarah F. Liebschutz, David Lewin, Irene Lurie, Paul D. Moore, James C. Musselwhite Jr., Martin Shefter, Kenneth E. Thorpe, Emanuel Tobier, Katherine Trent, 

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