Employment success of social assistance recipients: A provincial analysis by industry

Poverty continues to burden millions of Canadians each year, and social assistance (SA) is one program that provides last-resort financial assistance, conditional upon looking for and accepting work. Using tax panel data of SA recipients from across seven Canadian regions between 2000 and 2018, we model the probabilities of employment success (ES) across industry of employment, SA benefit amounts, unionization, and individual-level characteristics. We adopt an economic stance to explain reliance upon SA, examining the broader macroeconomic indicators of ES, and to demonstrate the factors associated with exiting SA. We find that many SA recipients do not present evidence of recent employment, indicating a disconnect between stated SA program aims and their outcomes. We provide evidence for increased SA benefits and unionization as significant predictors of ES of SA recipients.     

Financial decision making in collective society—A field test on Israeli kibbutz members and city residents

This comparison of Israeli kibbutz members to city residents examines how of individualistic/collective society affects financial decision making. Findings revealed that kibbutz members are more risk averse and discount the future more than city residents, undermining the assumption that collective society accords a safety net. We claim that the collective financial management of the kibbutz reduces individuals’ financial knowledge and experience, causing them to be more risk averse in financial decisions, and thus overpowering the safety net offered by the collective society. In addition, we argue that despite privatization, individuals still operate according to collective ideas in handling their personal finances, but less than before the onset of the privatization process.     

Discourses of savings

Katona (1975) established the importance of social perception variables in mediating the impact of economic conditions on financial decision making. There has been a tradition of work in economic psychology that has elaborated on this early work. However, clearly the economic and social circumstances for the contemporary consumer are vastly different to those studied by Katona. The present study uses a qualitative analysis of focus group material to investigate lay people's understanding of savings. Interpretation of extracts from the focus groups suggests a complex understanding of the relation between saving and social and economic change. There was a concern with uncertainty, regulation and the moral economy. The findings were interpreted in the light of theories of the risk society.     

Powerlessness of older people in Hong Kong: a political economy analysis

Gerontologists agree that old age can be associated with an increase in powerlessness both in the personal domain and in the social and political fields. This paper is an attempt to understand the concept of powerlessness in old age within a political economy theoretical framework. The paper argues that the powerlessness of older people is not biologically determined. Rather, it is socially constructed. It has its roots in the social, economic, and political structure of society. For this reason, the paper argues that (a) the capitalist economic system discriminates against and marginalizes older people in the labor market. The current unfavorable economic climate will make the economic situation of older people worse. (b) The residual welfare system does not counteract the unfavorable impact of the economic system. Rather, it deprives older people of the necessary financial resources and social service supports that would enable them to lead independent and dignified lives. (c) The authoritarian political system creates adverse conditions that make it very difficult for older people to participate in the decision-making process on issues that affect their lives, as well as on broader political issues that affect the whole of society. It is the interplay among these economic, social, and political forces in Hong Kong that creates the political economy of powerlessness in old age and prevents older people from using their powers to master and control their lives.     

Finanzialisierung,Demokratie und Gesellschaft – zehn Jahre nach Beginn der Finanzkrise

This introduction to the special issue—ten years after the collapse of the investment bank Lehman Brothers and the beginning of a worldwide financial, economic, and debt crisis—reflects on the extent to which the economic crisis affected a turning point in society overall. The current state of research into the relationship between financialization, democracy, and social conditions strongly suggests that while the processes of financialization that favored the emergence of a crisis were influenced by the financial crisis, they were not completely reversed. In fact, the financial market regulation, which was changed in response to the crisis, did not exert any modifying pressure in terms of a restructuring of the financial system. An epochal shift in financial market regulation therefore cannot be identified from the steps taken in the reform process. Elseways there is clear evidence that the financial crisis has had a lasting impact on the European integration process, confidence in democracy, and political culture. The financial crisis is therefore likely to be perceived as a historical watershed, mainly due to its impact on societal areas beyond the financial system itself.     

World Economy,World Society,and Environmental Harms in Less‐Developed Countries*

World economy and world society theories are engaged to assess the extent to which environmental harms in less‐developed countries are tied to particular kinds of economic and social integration. Results of panel models indicate that world economy integration in the context of sector‐level foreign investment contributes to a variety of environmental harms. With the exception of deforestation, world society integration in the mode of environmental international non‐governmental organization presence has no direct effect. However, a stronger presence of such organizations in less‐developed countries mitigates the effect of foreign investment on all tested outcomes. The authors contend that comparative sociologists should adopt theoretically integrative approaches and pay closer attention to how and under what circumstances world economy and world society factors interact to partially shape social and environmental conditions.     

Global Governance,neoliberalism and national responses: The case of Bangladesh’s ready‐made garment (RMG) sector

This article on the ready‐made garment (RMG) sector of Bangladesh shows how over‐reliance on foreign capital for development financing and deregulated investment—a hallmark of neoliberal economic arrangements—undermines the incorporation of SDGs’ and INGOs’ equity principles, contributing to biased policy responses yielding unequal outcomes. The article cautions that while countries prioritize economic growth over social and environmental nourishment and continue to adopt neoliberal economic policies to promote economic growth, inequity is unavoidable, if not inevitable. Thus, the way forward may be to shift the focus of ‘development’ from the economy to society, to building ‘good societies’ where institutions and strategies, including those that contribute to economic growth, are organized such that these complement not compromise the evolution of such societies.     

Social and human capital in immigrant adaptation:: The case of Canadian business immigrants

Purpose: With the resurgence of immigration to North America in the past three decades, research on immigrant adaptation and the attendant issues of assimilation has burgeoned. A prevailing assumption of much of this research is that social capital is a vital resource enabling immigrants to find their economic and social niches in the host society. In a word, social capital is a key factor in the immigrant adaptation process. This assumption has been especially prominent in research focusing on one specific subset of immigrants: entrepreneurs. Social capital in the form of ethnic networks and family ties is assumed to function critically in the establishment and operation of immigrant-owned businesses. This paper argues that although the formation and expenditure of social capital may typify the experiences of many or even most immigrant entrepreneurs, some enter the host society with sufficient human and/or financial capital that enables them to forego the utilization of social capital in the adaptation process.Methods: To demonstrate, I draw upon in-depth interviews conducted with 70 immigrant entrepreneurs in the province of Ontario, Canada between 1993 and 1995. All interviewees entered Canada under the auspices of the Canadian Business Immigration Program, a federal program designed to attract immigrants with demonstrable business and managerial skills that presumably will lead to the establishment of a firm and thus to the subsequent creation of jobs and economic activity. A formal requirement of their entrance, then, is the possession of proven business skills, a critical form of human capital that facilitates successful economic adaptation in the host society.Forms of social capital are described and their applicability to the adaptation experiences of the interviewees is analyzed. What is found among these business immigrants is a minimal reliance on social capital in establishing and operating their firms. In securing investment capital, finding a work force, and acquiring information, ethnic and family ties, the most common forms of social capital for immigrants generally and for immigrant entrepreneurs in particular, do not play a major role. Solidarity with co-ethnics and the use of family labor, so common among conventional immigrant entrepreneurs, are not of significant import in the economic adaptation of these business immigrants. Moreover, ties to coethnics are only minimally significant in patterns of social adaptation as well.Results: It is concluded that immigrants entering the host society with pre-migration intentions of business ownership possess sufficient human capital that enables them to disregard the formation and utilization of social capital in their economic and social adaptation. In this they differ from immigrants who take a more conventional path to business ownership, that is, laboring in the mainstream work force following entrance into the host society and gradually accumulating resources that lead to entrepreneurship.For business immigrants with children, however, social capital does play a key role in the decision to immigrate. Business immigrants are prepared to abandon successful firms in the origin society in order to provide their children with a more promising socioeconomic environment, including above all what is viewed as superior opportunities for education. Hence, the social capital that inheres in close-knit family arrangements provides incentive for parents to accept losses in financial capital in order to increase their children’s human capital.Conclusion: The context of the receiving society may also be seen as a form of social capital for Canadian business immigrants. All declare that quality of life, rather than the lure of financial success, serves as their major incentive to immigrate to Canada. Moreover, the fact that they enter a society that officially proclaims its multicultural character offers them the opportunity to become Canadian but to retain their ethnicity. The source of social capital in this case, then, is not the ethnic community, but the broader society.     

The Social Determinants of Health as they relate to children and youth growing up with HIV infection in sub-Saharan Africa

There are concerns that current models of HIV service delivery pay insufficient attention to the struggles of children, their families and health services in managing the social factors that govern the health, development and psychosocial well-being of children and youth growing up with HIV in sub-Saharan Africa. The papers in this Special Issue offer some direction for how we can offer more holistic and integrated responses that accommodate a broader vision of children's needs and provide a strong rationale for developing a framework of Social Determinants of Health as they relate to children and youth living with HIV in sub-Saharan Africa. We argue that such a perspective has the potential to improve HIV treatment outcomes by cementing the need to i) understand, measure and respond to drivers of health, health inequities as well as barriers to development; ii) foster partnerships and inter-sectoral cooperation; iii) adopt child-, family- and community-centered approaches that are linked to broader care and support systems; and iv) develop a focused research agenda on Social Determinants of Health as they relate to children and youth living with HIV. Given that HIV is experienced, lived and managed within interpersonal relationships, overlapping and complex social structures and economic systems, we conclude that efforts to achieve an AIDS-free generation are most likely to be successful if they recognize and engage with the Social Determinants of Health as they relate to children and youth living with HIV.     

Privatizing public pension systems: Lessons from Latin America

The major goal of this analysis is to examine the pros and cons of privatizing public pension schemes based on the Latin American experience. The study draws on evidence from four countries that have fully privatized their public pension schemes (Chile, Mexico, Bolivia, and El Salvador) and four that have partially privatized (Argentina, Uruguay, Colombia, and Peru). Some evidence suggests that privatization is having positive economic effects, contributing to the development of financial institutions and the availability of investment capital. It may also be increasing national savings rates and the rates of economic growth, but on these issues there is less agreement. The benefits of privatization go primarily to high-wage male workers with few benefits for low-wage and female workers. As a result, privatization contributes to both income and gender inequality. Efforts to draw lessons for the US must take into consideration numerous political and economic differences.     

A Model of the Macroeconomic Effects of Privatization on Employment in Transition and Developing Countries with an Application to China

It is generally agreed that privatization of state-owned enterprises improves economic efficiency, but it is also widely feared that it exacerbates unemployment especially in transition and developing economies. This paper proposes a theoretical model of the macroeconomic relationships between privatization, efficiency, output, and employment. The model explains how privatization affects employment in transition and developing economies through different, and often opposing, channels. As a result, job losses at firms being privatized may result in overall job gains or losses in the economy, depending on the macroeconomic conditions. We apply this model to China and find that the model provides an intuitively appealing explanation for the job gains and losses caused by privatization in China during its transition. The model further suggests policies to maximize the gains and minimize the costs of privatization.     

The Madoffization of Irish society: from Ponzi finance to sociological critique

Financialization and neoliberal policy created the Celtic Tiger. This economic ‘miracle’ furthered creditors’ and property developers’ speculative interests, leading to an unstable financial pyramid that eventually imploded in 2008 with catastrophic consequences for Irish society. Using the sociological imagination as social critique, this paper offers a lens on fictitious capital and Ponzi finance in the context of Ireland's boom and bust. Critique is advanced using the Madoffization of society thesis, a sociological heuristic that draws formal comparisons between Bernie Madoff's US$65 billion Ponzi scheme, which collapsed in 2008, and financialized capitalism. The Madoff case exhibits five main elements or forms which, it has been argued, underlie the varying content of life on a much broader scale: accumulation by debt expansion, mass deception, efforts to maintain secrecy and silence, obfuscation, and scapegoating. In conclusion, a crucial difference between the Madoff case and the Madoffization of Irish society is underscored. Discussion also moves from critique to hope amidst calls to renew sociology and transform financialized capitalism.     

Window on the world. Social policy and social work in New Zealand

In recent years, New Zealand has attracted some international attention for its relatively rigorous application of monetarist, neo-liberal social and economic policies. This has led to its transformation from being one of the most socialized and protected economies in the western alliance to being relatively deregulated and open to global trade. The implications for New Zealand society and its publicly funded services have been profound. This article gives a summary of the outcomes of the neo-liberal era for New Zealand, including some of the major changes specific to social policy and social work. Areas of interest include: the growing recognition of the bi-cultural foundation of New Zealand society; the changes in welfare, labour, housing, and social security policies; and especially New Zealand's unique approach to the welfare of children and young persons. The implications of New Zealand's strong emphasis on contracting-out of social services are considered, alongside a broader assessment of the benefits of the 'reforms' for New Zealanders collectively. Some indications of future changes in direction, subsequent to the recent change in government, are also given.     

The Socio-Economic Empowerment Assessment: Addressing Poverty and Economic Distress in Clients

In this paper, we introduce the Socio-Economic Empowerment Assessment (SEEA), a qualitative assessment that uses an ecological framework to better understand the psychological impact of poverty and financial insecurity. The assessment is designed as a practice tool and can be administered in a number of clinical settings, including agencies most likely to serve low-income populations. It can also be included as part of financial literacy or management sessions that social work agencies may offer. This paper explores how SEEA can be used to help develop specific and appropriate interventions that move low-income people and others toward economic empowerment. We examine the literature on financial literacy programs and theories on behavior regulation and social relationships related to consumption. A case study using an integrative assessment approach is included as an example of SEEA implementation.     

Family identification facilitates coping with financial stress: A social identity approach to family financial resilience

Family financial stress research has typically examined negative effects of deprivation on mental health, which in turn erode financial coping. While this work acknowledges family support’s role in buffering these effects, it has typically overlooked how family identification can act to structure the experience of, and response to, economic challenge. We adopt a Social Identity approach, arguing that family identification predicts increased social support and improved well-being, which predicts more effective coping with financial problems. We explore this in two community surveys (N = 369; N = 187). In the first we show that stronger family identification and support predict better well-being, which predicts better evaluation of economic coping. In the second we replicate these findings, and also show that the relationship between well-being and financial distress is fully mediated by perceptions of ‘Collective Family Financial Efficacy’. These findings point to a more positive understanding of how family cohesion can promote mental well-being/resilience.     

Contextualizing corporate control in the agrifood and extractive sectors

ABSTRACT

Corporations have gained enormous power and influence in recent decades as mergers and acquisitions in just about every sector of the global economy have given rise to mega-sized companies that influence almost every aspect of our lives. In this contribution, we examine the rise of corporate concentration and control in two key sectors – agriculture and extractives – where in recent years consolidation has accelerated due to a combination of technological change, weakening state regulation and financial pressures, leaving these sectors largely controlled by just a handful of giant players. Corporate concentration and control in these sectors has important consequences, contributing to heightened inequality, environmental harm, and human rights violations. This paper reflects on the strategies of civil society and social movements in contesting extreme consolidation and corporate power. It calls for a multiscale approach that restores the regulatory powers of states and reestablishes people's sovereignty on a broader scale.     

The Rise of Social Cooperatives in Italy

This paper reports how a new model of social enterprise—the social cooperative (SCs)—has become instrumental, in the Italian context, in the expansion of the social economy. It underlines the contribution these associations have made toward broadening the concept and standard parameters of volunteer organizations, providing basic social welfare services, and integrating the disadvantaged into the mainstream of society. The paper focuses on some SCs organizational aspects, highlighting the many traditional and advantageous business features, the ease with which they have access to financial instruments, and their ability to activate wider social projects. Given their recent spreading in Italy, where the Third Sector is less developed than in other Western countries, SCs incorporate working modalities that could also be of interest and relevance to other countries. To adopt this type of organization, however, calls for adequate competencies and protection under specific laws because they are, on the whole, still small-sized and somewhat fragile.     

The arithmetic of outcome editing in financial and social domains

Outcome editing refers to a set of mental rules that people apply when deciding whether to evaluate multiple outcomes jointly or separately, which subsequently affects choice. In a large-scale online survey (n = 2062) we investigate whether individuals use the same outcome editing rules for financial outcomes (e.g., a lottery win) and social outcomes (e.g., a party with friends). We also test the role of numeric ability in explaining outcome editing. Our results show that people’s preferences for combining or separating events depend on whether those events are in the financial or the social domain. Specifically, individuals were more likely to segregate social outcomes than monetary outcomes, except for when all outcomes were negative. Moreover, numeric ability was associated with preferences for outcome editing in the financial domain but not in the social domain. Our findings extend the understanding of the arithmetic operations underlying outcome editing and suggest that people rely more on calculations when making choices involving multiple financial outcomes and more on feelings when making choices involving social outcomes.     

Social Capital, Savings, and Educational Performance of Orphaned Adolescents in Sub-Saharan Africa

We examine the impact of social capital on savings and educational performance of orphaned adolescents participating in a family-level economic strengthening program in Uganda. Findings indicate that if given the opportunity, poor families in Uganda will use financial institutions to save for the education of their adolescent youth. Moreover, although the results are mixed, overall, adolescents with higher levels of social capital and social support, including participation in youth groups, are likely to report better saving performance compared to their counterparts with lower levels of social capital and social support. The results point to: (1) the role for family-economic strengthening programs specifically focused on improving the educational outcomes of orphaned adolescents in sub-Saharan Africa, and (2) the need for adolescents to be encouraged to participate in youth groups since these groups seem to offer the much needed supportive informal institutional structure for positive adolescent outcomes.     

The Systems Approach in a Global Perspective: The New Economy and Reindustrialization

The existing economic model leads developed and developing countries to a stalemate. The global financial crisis of 2008–2009 revealed the instability and fragility of the current economic model. We can observe the consequences of the crisis (and its continuation) up to the present time. The problem is worse in those economies where the real sector of the economy has been steadily declining during recent years. The great dependence of developed countries on the global financial system, and, in particular, the IMF, causes unemployment to increase, deskills the working-age population, reduces the level of social welfare and aggravates problems of social tension. As for developing countries, they face the problem of attracting investors to the real sector of the economy. The latest economic and social crisis shows the high level of interdependence and demonstrates that all national economies are a united economic system, and that sustainable development is possible only if all work together.