The social order of markets

In this article I develop a proposal for the theoretical vantage point of the sociology of markets, focusing on the problem of the social order of markets. The initial premise is that markets are highly demanding arenas of social interaction, which can only operate if three inevitable coordination problems are resolved. I define these coordination problems as the value problem, the problem of competition and the cooperation problem. I argue that these problems can only be resolved based on stable reciprocal expectations on the part of market actors, which have their basis in the socio-structural, institutional and cultural embedding of markets. The sociology of markets aims to investigate how market action is structured by these macrostructures and to examine their dynamic processes of change. While the focus of economic sociology has been primarily on the stability of markets and the reproduction of firms, the conceptualization developed here brings change and profit motives more forcefully into the analysis. It also differs from the focus of the new economic sociology on the supply side of markets, by emphasizing the role of demand for the order of markets, especially in the discussion of the problems of valuation and cooperation.

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The crisis of neoliberalism and the future of international institutions: A comparison of the IMF and the WTO

The current crisis of neoliberalism is calling into question the relevance of key international institutions. We analyze the origins, nature, and possible impacts of the crisis through comparing two such institutions: the International Monetary Fund (IMF) and the World Trade Organization (WTO). Both originated in the post-World War II U.S.-led hegemonic order and were transformed as part of the transition to global neoliberalism. We show that while the IMF and the WTO have been part of the same hegemonic project, their distinct institutional features have put them on significantly different trajectories. Historical differences in the two institutions’ systems of rules have placed the IMF in a more vulnerable position than the WTO, which provides clues to the future contours of global economic governance.

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Valuing housework time from willingness to spend time and money for environmental quality improvements

We develop a new approach to assessing the value of home production time based on willingness to spend time and money to obtain environmental improvements. When peoples’ choice is constrained by time as well as money, measures of willingness to pay can be defined with respect to either numeraire. In a model that explicitly allows for multiple shadow values of time, we show that the willingness to pay time and money measures are linked through the value of saving time. With survey information on peoples’ willingness to spend additional time on housework activities, as well as pay money, to obtain environmental quality improvements, joint estimation within a utility-consistent structure produces estimates of both willingness to pay and the value of saving housework time. From the value of saving housework time, the marginal value of housework time can be readily identified. When applied to Korean households’ valuation of water quality improvements in the Man Kyoung River, we find that the value of housework time is 70–80% of the market wage.

Testing Fair Wage Theory

Fairness considerations often are invoked to explain wage differences that appear unrelated to worker characteristics or job conditions, but non-experimental tests of fair wage models are rare because market data rarely permit researchers to measure individual workers’ productivity and its value. We use data from the baseball labor market to address this problem, and find no support for fair wage theory. We do find, however, that fairness premia can be illusory: Wages appear to incorporate fairness premia in regressions that control for variation in individuals’ physical output, but such premia evaporate when the value of that output is held constant.

The once and future information society

In the late twentieth century, many social scientists and other social commentators came to characterize the world as evolving into an “information society.” Central to these claims was the notion that new social uses of information, and particularly application of scientific knowledge, are transforming social life in fundamental ways. Among the supposed transformations are the rise of intellectuals in social importance, growing productivity and prosperity stemming from increasingly knowledge-based economic activity, and replacement of political conflict by authoritative, knowledge-based decision-making. We trace these ideas to their origins in the Enlightenment doctrines of Saint Simon and Comte, show that empirical support for them has never been strong, and consider the durability of their social appeal.

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Efficient nonanthropocentric nature protection

This paper analyzes nature protection by a social planner under different ‘utilitarian’ social welfare functions. For that purpose we construct an integrated model of the economy and the ecosystem with explicit consideration of nonhuman species and with competition between human and nonhuman species for land and prey biomass. We characterize and compare the efficient allocations when social welfare is anthropocentric (only consumers have positive welfare weights), when social welfare is biocentric (only nonhuman species have positive welfare weights) and when social welfare is nonanthropocentric (all species have positive welfare weights). Not surprisingly, biocentric social welfare calls for suspending all economic activities. It is more important, however, that both anthropocentrism and nonanthropocentrism make the case for nature protection through different channels, though. Our analysis suggests that one may dispense with the concept of nonanthropocentric social welfare provided that in the anthropocentric framework the consumers' intrinsic valuation of nature is properly accounted for.

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Marriage,partnership and sexual orientation: a study of British university academics and administrators

Using a unique data source on marital status, partnership and sexual orientation of academics and administrators at British universities, we estimate the impact of personal relationships upon earnings for men and women. While university data cover a relatively homogeneous group of workers, the two sides of the university are very different, with administrative jobs being more like the general job market in the economy. We find a large and significant married male premium, but only on the administrative side of the university. There is no female marriage premium, and no partnership return to gay men or to either heterosexual or homosexual women.

Race and the NFL Draft: Views from the Auction Block

Previous research suggests that minorities are more likely to perceive racially-based discrimination in a variety of settings than are whites, in large part because of the ways their personal experiences with racism shape the lens they use to view the world. We examine a labor market that is typically considered an exception to patterns of racism in employment, the industry of professional football. We interview athletes who attempted to gain employment in the National Football League, a labor market where access to valued positions is heavily restricted by industry practices. Findings from field research and semi-structured interviews indicate that minority workers experience symbolic discrimination during the hiring process. Differential treatment of players reflects stereotypes about minority families and masculinity. Although minority and white players describe much of the actual content of their labor market experiences in similar fashion, their perceptions of these experiences differ sharply, with minority athletes identifying far more negative repercussions.

Poverty and its persistence: a comparison of natives and immigrants in Sweden

This paper analyzes poverty and its persistence in Sweden using a large panel with detailed income information obtained from tax registers. As opposed to many commonly used household panels, the features of the data utilized in this paper allow us to study native-immigrant differences in poverty. We use a hazard rate model based on multiple spells that accounts for unobserved heterogeneity and endogenous initial conditions. The empirical results suggest that there is negative duration dependence in both exit and entry hazard rates. Moreover, the transition rates are significantly affected by immigrant status, educational attainment, labor market conditions, age, and family status.

Chinese Contract Law and the Economic Reform

China’s previous contract laws had many contradictions and failed to meet the needs of China’s developing market economy. Although some problems still need to be dealt with, the unified contract law is more advanced, systematic and plays an important role in fostering and encouraging transactions.

The scoring rules in an endogenous election

Plurality rule is mostly criticized from being capable of choosing an alternative considered as worst by a strict majority. This paper considers elections in which the agenda consists of potential candidates strategically choosing whether or not to enter the election. In this context, we examine the ability of scoring rules to fulfil the Condorcet criterion. We show for the case of three potential candidates that Plurality rule is the only scoring rule that satisfies a version of the Condorcet criterion in two cases: 1) when preferences are single-peaked and, 2) when preferences are single-dipped.

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Marriage migration: just another case of positive assortative matching?

It is a stylized fact that marriage formation involves positive assortative matching on education. We also find this in the case of immigrants, even when they tend to “import” their spouses and potentially trade off education for other favorable characteristics. For Pakistanis, we find positive compensating differentials in terms of high education to youth having adopted host country norms, when marrying a marriage migrant. This indicates that Pakistani marriage migrants pay a premium to be able to marry and live in Denmark. For Turks, individuals having source country norms pay a premium in order to import a partner, indicating that unspoiled traditional norms are traded off for education.

How to model an institution

Institutions are linkage mechanisms that bridge across three kinds of social divides—they link micro systems of social interaction to meso (and macro) levels of organization, they connect the symbolic with the material, and the agentic with the structural. Two key analytic principles are identified for empirical research, relationality and duality. These are linked to new research strategies for the study of institutions that draw on network analytic techniques. Two hypotheses are suggested. (1) Institutional resilience is directly correlated to the overall degree of structural linkages that bridge across domains of level, meaning, and agency. (2) Institutional change is related to over-bridging, defined as the sustained juxtaposition of multiple styles within the same institutional site. Case examples are used to test these contentions. Institutional stability is examined in the case of Indian caste systems and American academic science. Institutional change is explored in the case of the rise of the early Christian church and in the origins of rock and roll music.

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The Heterogeneous Effect of the Passage of the Occupational Safety and Health Act on Stock Returns

I analyze how stock prices reacted to the passage of the Occupational Safety and Health Act (OSHA) of 1970. Previous studies focus on accounting measures or actual OSHA violations, and my work complements the literature by examining how shareholders expected OSHA to affect firm profitability. Returns fell around the OSH bill’s release to the House floor and its eventual passage, and average market value dropped by $1.5 million over the 3 days surrounding House Rules Committee release. Durable manufacturing and mining industries were hardest hit in OSH passage, losing $2.6 million and $5.7 million in average market value, respectively. I also find that larger firms with poorer working conditions sustained more negative returns, and market power, not union density, explains variation in expected profitability. Furthermore, future penalties appear unrelated to shareholder expectations about compliance costs.

Sartre for the twenty-first century?

By virtually dominating French intellectual life (literature, philosophy, culture) during the early post-World War II period, Jean-Paul Sartre (1905–1980) embodied what Pierre Bourdieu calls a “total intellectual” – one who responds to and helps frame public debate on all the intellectual and political issues of the day. During his lifetime and even after his death in 1980, Sartre’s thinking and political engagements provoked sharp reactions, both positive and negative, in France and abroad. Marxism, decolonization struggles, and violence are three key themes on which Sartre’s public positions continue to generate considerable debate – a debate that remains relevant today.

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Different Paths to Similar Outcomes? Industrial Relations Reform and Public Policy in Australia and New Zealand

In recent years, both Australia and New Zealand have embarked on significant labor market reforms which have resulted in more decentralized and individualized systems of industrial relations. Although both countries share a common heritage of state-sponsored conciliation and arbitration, which fostered a centralized approach to labor market regulation, each has responded in its own way to economic and political pressures to reform its long-established industrial relations system. Despite differences in the process of indusrial relations reform, both countries now have industrial relations systems which are more individualistic and in which unions play a less significant role than in the past.

International Funding of NGOs in India: Bringing the State Back In

This article seeks to understand how the Indian state exercises control over transnational ties between foreign and domestic actors by examining the national legislative practices that determine receipt of foreign funds and the data on foreign funding flows to NGOs (a database of more than 18,000 associations). The article shows how legislative practices of democratic states serve to reduce foreign influence. Issue characteristics are also shown to determine state response to externalization, blocking transnational ties in “high politics” areas such as minority claims. Finally, within state imposed restrictions, religious rather than secular organizations remain dominant transnational actors in India. The study contributes evidence to suggest that contrary to the arguments of world polity theory and many transnational social movement scholars, states continue to remain powerful actors limiting transnationalization.

“Me and the Law is Not Friends”: How Former Prisoners Make Sense of Reentry

This article examines how former prisoners of color conceptualize their political, social, and economic futures and how these conceptualizations relate to the racialized social structural obstacles encountered upon reentry and decisions to re-engage criminal labor. I find that, presented with similar post-prison challenges, excarcerated men take several approaches when reentering society. I argue that the differences among their approaches lie in their varying interpretations of how they can act as individuals against and within their social structural limitations. Their decisions to rejoin or forfeit participation in criminal economies are thus shaped by experiences confronting the limitations of material conditions but also emerge from their critiques of racialized structures.

Afghanistan: A Change of Course?

The situation in Afghanistan today is not what the international community was planning it to be, 7 years ago when the Bonn Agreement was signed. Deterioration of security, weak governance, corruption, high narcotic production and trade, slow reconstruction process and consequent people’s disappointment are some of the features of that situation. Kabul and its international partners had a very little success in restoring peace and security, and a new phase of strategic re-thinking is in process. This article analyzes the different aspects of Afghan reconstruction and military intervention, their strengths and weaknesses, and outlines some urgent actions to be taken by all concerned actors.

The poverty of organizational theory: Comment on: “Bourdieu and organizational analysis”

American organizational theorists have not taken up the call to apply Bourdieu’s approach in all of its richness in part because, for better or worse, evidentiary traditions render untenable the kind of sweeping analysis that makes Bourdieu’s classics compelling. Yet many of the insights found in Bourdieu are being pursued piecemeal, in distinct paradigmatic projects that explore the character of fields, the emergence of organizational habitus, and the changing forms of capital that are key to the control of modern organizations. A number of these programs build on the same sociological classics that Bourdieu built his own theory on. These share the same lineage, even if they were not directly influenced by Bourdieu.

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