Does Who Decides Really Matter? Causes and Consequences of Personal Financial Management in the Case of Larger and Structural Charitable Donations

We study causes and consequences of financial management in households in the specific case of charitable giving. We test hypotheses using couples in the Giving in the Netherlands Panel Study (n = 1,101). We find that more relationship specific investments lead to deciding on charitable giving as one economic actor. Furthermore, we find that the partner with the highest relative educational resources has most decision making power over charitable donations. Separately deciding couples are smallest charitable donors. Households in which the male partner decides are largest charitable donors when only larger and more structural donations are considered. This can be explained by their more conservative religious denomination.     

Living on the Edge: Institutional Supports and Perceptions of Economic Insecurity Among People with Disabilities and Chronic Health Conditions

The growth of precarious employment coupled with declining social safety nets has increased economic insecurity among many households, leaving them without key resources to weather financial hardships like those brought on by the COVID-19 pandemic. This has been especially true for people whose disabilities, health statuses, and already precarious economic situations have made them extra vulnerable. We combine survey (N = 1,027) and interview (N = 50) data for Canadians with disabilities and chronic health conditions to explore how mobilizing four types of institutional supports connected to labor markets, financial markets, family, and government influenced perceptions of current and future insecurity during crisis. Because employment income was only available to about half of our respondents, many relied on a combination of savings, family supports, and government programs to make up the difference. This paper demonstrates how marginalized groups make use of different supports within liberal welfare states during times of crisis.     

Does Actor Perspective Matter? A Case Study of Designing Intervention for Small‐Scale Palm Oil Production Enterprises in Kwaebibirem District of Ghana

Despite the fact that the government of Ghana imports the bulk of its industrial palm oil needs, it still fails to give assistance to about 80 percent of small‐scale producers to enhance development in the industry. To design interventions that will be sustainable for and beneficial to these producers, it is important to understand their perspectives first, so as not to “fix development” for them. This case study in the Kwaebibirem District of Ghana uses an actor‐oriented approach to understand the dynamics in the palm oil enterprise (kramer). Improvements in the kramer evidently evolve from the actors’ own agency. Any intervention for development should therefore first understand the dynamics of the kramer as a social field, and take this perspective as a bottom‐up starting point. This article is divided into six sections; the first section is an introduction, while the second describes our methodology. We next outline our conceptual approach, followed by an analysis of experiences of actors and their interactions. We then describe the resource flows and their interrelationships, including the power relations at play in the kramer networks. Finally, we conclude by drawing lessons on the relevance of an actor perspective in designing a learning intervention for processors, scientists, and extensionists.     

THE FRAGILE AMERICAN: Hardship and Financial Troubles in the 21st Century

Rising economic insecurity at the turn of the 21st century made Americans increasingly vulnerable to financial distress. Studies of bankruptcy records show that personal hardships like health problems, divorce, job loss, and income disruption are the major reasons Americans fall into financial ruin. This article uses nationally representative data from the Survey of Consumer Finances to study the relationship between hardship and a range of financial troubles including bankruptcy, default, and credit access. We differentiate this analysis by class, expecting that debt troubles fall especially hard on middle‐income families. Our results show that while the middle class is distinctly vulnerable, multiple financial troubles accompany hardship for all classes.     

Marriage and Socioeconomic Change in Contemporary Indonesia

This study investigates the relationship between economic trends and entry into marriage in a rapidly developing setting. We examine Indonesian marriage in the 1990s, a decade of substantial economic growth followed by a sudden financial collapse in 1998. We use discrete‐time hazard models to analyze information on 4,078 women and 4,496 men from the Indonesia Family Life Survey. Although previous research has shown that marriages may be postponed after economic downturn, we find no evidence of such delays at the national level following the 1998 financial crisis. In contrast, we use regional wage rate data to show that entry into marriage is inversely related to economic growth throughout the decade for all women and for men from lower socioeconomic strata.     

Financial literacy education: An opportunity for colleges and sociology

Financial literacy represents the knowledge necessary to manage one's financial affairs in a way that contributes to overall wellbeing, yet financial literacy and financial education are understudied in sociology. While emerging adults have low rates of financial literacy overall, this article focuses on college students due to increasing college access and student loan debt. Based on the limited literature that assesses college financial literacy education, it appears that these types of programs may serve to advance college students' financial knowledge. Additional mechanisms that serve to develop college students' financial literacy include parent socialization, banking experience, and high school financial education programs. However, not everyone has the same access to these resources. Thus, given the magnitude of the US student debt crisis and persistent economic inequalities, college financial literacy education may prove beneficial for all students, particularly those from economically vulnerable backgrounds. This article serves as an invitation to sociologists to consider financial literacy education as both a worthwhile pursuit in application and as a research topic.     

Remittances,Transnational Dahiras and Governance in Senegal

The potential role of transnational organisations in fostering effective governance goes unexplored despite the increasing positive role that these organisations are playing today. In Senegal, a whole range of non‐state actors have always played a substantial socio‐economic role, even before the rise of the post‐colonial state. The Murid brotherhood can be regarded as part of this category of customary non‐state actors. In the 1980s, young Murids started to organize themselves in what can be viewed as self‐help community‐based organisations whose functions included the provision of social safety nets to their adherents. By the late 1980s, the scope of these youth organisations, or dahiras, expanded beyond the national boundaries. Mention of these dahiras in the vast development literature has so far been confined to the socio‐economic importance of the money they remit. This paper offers to transcend this focus on financial remittances, to explore the potential political role of international dahiras in their home country. By playing the role of alternative providers of social services, dahiras have propelled themselves to a position of legitimate non‐state actors with political clout. Today, some of them are starting to hold government to account for their actions. Their political power is not only derived from their affiliation with customary centres of authority, but it is also the resultant of their increased financial autonomy. Because transnational dahira interventions in Senegal are mostly associated with the role of remittances, their relations with the state are analysed through the lens of revenue generation and other processes of state formation such as internal bargaining between the state and societal forces. The paper is an examination of the potential role of transnational dahiras in demands for responsive governance. Its analytical orientation is placed within the theoretical premises of the “drivers of change” approach, fiscal sociology of state making and governance.     

Giving Unto Others: Private Financial Transfers and Hardship Among Families With Children

Prior research shows that financial assistance from family and friends is an important source of support for families with children. Research on financial transfers has largely focused on the recipients of transfers, however. In this study, using longitudinal data from the Fragile Families and Child Wellbeing Study (n ～ 16,000 person‐waves), the authors examine the association between the provision of financial assistance to family and friends and material hardship. The results from pooled regression and fixed effects models indicate that providing financial transfers is associated with an increased risk of hardship. The most economically disadvantaged groups, single mothers, those in the bottom income tertile, and Black mothers are the most likely to experience hardship after giving a transfer. These findings have important implications for understanding why families may have difficulty meeting basic and essential needs and how social networks may exacerbate the challenges of escaping poverty and establishing economic self‐sufficiency.     

FINANCIAL MARKETS' SHUTDOWN AND REACCESS

We employ a discrete‐time parametric duration model on a group of 121 countries over the period 1970–2011 and find that the probability of the end of financial markets' shutdown and reaccess falls as these events become longer. We also show that: (1) shutdown episodes are longer when economic prospects are poor and the degree of financial openness falls, the chief executive has been in office for long periods, and the country has a default history and (2) spells of reaccess tend to be longer when economic growth improves and financial openness increases, there are neither government crises nor government instability, and the country did not default in the past. (JEL C41, G15)     

Early Theory of Mind Competencies: Do Infants Understand Others’ Beliefs?

Recent studies suggest that even infants attend to others’ beliefs in order to make sense of their behavior. To warrant the assumption of early belief understanding, corresponding competences need to be demonstrated in a variety of different belief‐inducing situations. The present study provides corresponding evidence, using a completely nonverbal object‐transfer task based on the general violation‐of‐expectation paradigm. A total of n = 36 infants (15‐month‐olds) participated in one of three conditions. Infants saw an actor who either observed an object’s location change, did not observe it, or performed the location change manually without seeing it (i.e., variations in the actor’s information access). Results are in accordance with the assumption that 15‐month‐old infants master different belief‐inducing situations in a highly flexible way, accepting visual as well as manual information access as a proper basis for belief induction.     

The wageless life of the subaltern

ABSTRACT

One of the most striking legacies of the Subaltern Studies project has been the innovative methodologies and archives that it has mobilized to articulate the singular position of the subaltern outside the hegemonic terms of representation. Yet in its sweeping classification of non-hegemonic social groups and classes, Subaltern Studies has often tended to elide the precise economic determinants that define the subaltern as a class, and thereby foreclose the forms of agency that are available to people who occupy such singular positions of radical alterity that cannot be identified in hegemonic terms. Spivak’s deconstructive rethinking of the labour theory of value enables us to consider how the body of the gendered subaltern performs an important economic function in the contemporary global economy. But to what extent can such a theory account for the economic conditions of people dwelling in the slums and shantytowns of postcolonial cities, or what Michael Denning has aptly called the wageless life of the global poor? And how might we begin to address the gendered dynamics of wageless life? Through a reading of Abderrahmane Sissako’s film Bamako (2006), this essay considers how the film’s juxtaposition of a fictional courtroom narrative in which the World Bank is put on trial and the everyday lives of characters who populate the courtyard in which the courtroom is situated raise questions about the limitations of the law and civil society to alter the socio-economic conditions of wageless life. With reference to Gayatri Spivak’s reflections on the relationship between the subaltern and the economic policies of global financial institutions the essay suggests that the narrative structure and mise-en-scène of Bamako offer a means of addressing the global economic conditions as well as the power relations that circumscribe the agency and voice of the subaltern.     

UNDERSTANDING THE MACROECONOMIC IMPACT OF ILLIQUIDITY SHOCKS IN THE UNITED STATES

In this paper, we empirically investigate the role of stock market illiquidity shocks, stemming from Amihud's illiquidity measure, in explaining U.S. macroeconomic fluctuations from 1973 to 2018. We find that the impact of illiquidity shocks on economic activity is substantial, and historical decomposition analysis shows that cumulative illiquidity shocks were an essential contributor to the prolonged economic slump of the Great Recession. Moreover, our identified illiquidity shocks represent a distinct source of macroeconomic instability. This suggests that illiquidity shocks, measured by the stock price impacts, may contain more information than other types of shocks in recent studies, such as financial shocks and uncertainty shocks. (JEL C32, E32)     

Civil Organizations in Mexico: Recent Evolution and Prospects

This paper begins by identifying how, as a result of the confluence of a number of factors, civil organizations (COs) in Mexico have shown an exponential development in the past 15 years. However, it is argued that COs are suffering a fiscal crisis and, in some sense, an economic one, provoked by the political reaction of the government toward this growth. At the same time, there is no crisis of legitimacy; their increasing levels of social support suggests a trend in the reverse direction. However, the legitimacy attributable by the population to nonprofits seems to be due to the novelty of this sociopolitical actor in the context of a disappointment with more traditional ones including government and political parties—as opposed to an endorsement of their proven capacity or efficiency in solving the problems of development. To take advantage of what seems to be a golden opportunity for its positive development, in addition to changing the unfavorable economic environment, it is argued that the sector has to face the challenge of thinking in its long-term interest and making sure that it is positioned to act as capably efficient.     

POLITICAL OPPORTUNISM AND COUNTERCYCLICAL FISCAL POLICY IN ELECTION‐YEAR RECESSIONS

Political budget cycles (PBCs) have been well documented in the literature, albeit not for all circumstances. Similarly, there is clear evidence on the positive effect of economic growth on electoral success. However, no work has been done on the impact of economic growth on the magnitude of PBCs. The theoretical model argues that a government has an incentive to increase fiscal manipulations when a recession is expected to hit and curtail reelection chances; this amounts to countercyclical policy for opportunistic rather than Keynesian motives. Very robust evidence for this behavior is found in Portuguese municipalities; in election years, budget deficits go up even more and significantly so, when a recession is expected. (JEL D72, E62, H62)     

Expanding the Family Economic Stress Model: Insights From a Mixed‐Methods Approach

The current study used a mixed‐methods approach to examine how low‐income mothers managed their household economies, their experiences of economic pressure, and the consequences for family and child functioning. Qualitative analyses (N = 32 families) revealed that experiences of economic pressure were associated with an inability to afford both basic needs and some modest but highly valued “extras.” To meet demands, mothers reported using a variety of strategies, including instrumental support from friends and family members and other financial strategies. Results from the quantitative analyses (N= 516 families; 800 children, ages 6 – 15) were generally consistent with patterns observed in the qualitative analyses and extended the findings to include effects on parenting practices and children’s behavioral functioning.     

Still the Favorite? Parents' Differential Treatment of Siblings Entering Young Adulthood

This study examined within‐family stability in parents' differential treatment of siblings from adolescence to young adulthood and the effect of differential treatment in young adulthood on grown siblings' relationship quality. The author used longitudinal data on parent–child and sibling relations from the sibling sample of the National Longitudinal Study of Adolescent Health (N = 1,470 sibling dyads). Within‐dyad fixed effects regression models revealed that the adolescent sibling who was closer to parents went on to be the young adult sibling who was closer to and received more material support from parents. Results from an actor–partner interdependence model revealed that differential parental financial assistance of young adult siblings predicted worse sibling relationship quality. These findings demonstrate the lasting importance of affect between parents and offspring earlier in the family life course and the relevance of within‐family inequalities for understanding family relations.     

Letters to the Editor

ABSTRACT

To prepare students to work competently with financially at-risk individuals, families, and communities, social work schools need to bring economic literacy skills into the curriculum. This article describes an ambitious financial capability education initiative in New York City. It reports on a unique collaborative effort to develop, use, and evaluate online financial capability education among seven schools. Additionally, readiness and capacity for scaling up with upstate schools are explored, as their innovations in economic capacity building with special populations are cited.     

One-dimensional times: a dialectical response to the Irish Times’ coverage of the global financial crisis

A growing literature claims that critique of neoliberal capitalism after the global financial crisis (GFC) has been ‘captured’ within the logic of capital. Such research argues that ‘capture’ is achieved through a process whereby critique of neoliberalism is transformed into arguments for more neoliberalism. This creates a one-dimensional ‘recovery’ discourse. Drawing on Marcuse’s theory outlining ‘one-dimensional society’ and critical discourse analysis, this study assesses the relevancy of such claims for an Irish medium, the Irish Times, through an examination of GFC-related discourse during 2009–2010. This study finds that economic discourse in the Irish Times is captured when organisational bias allows pro-neoliberal actors from business and government privileged access to discourse production. We engage a call from organisation studies for a dialectical reading of captured discourse. We end with a discussion of the limits of this reflexive approach to capitalism’s contradictions for disrupting its ongoing hegemony.     

Family Financial Risk Taking When the Wife Earns More

This study investigates whether the relative bargaining power of spouses plays a role in explaining household financial risk taking. Traditional models assume that household decisions are made based on pooled resources and common preferences. In contrast, bargaining models hypothesize that household decisions depend on the relative bargaining power of spouses. According to bargaining models, if women are more risk averse, then households should exhibit less financial risk taking as the bargaining power of the wife increases. Results of an analysis of household financial risk taking in a sample of dual-earner, married households from the 2004 Survey of Consumer Finances are more consistent with decision making based on pooled resources rather than on the relative bargaining power of spouses.

Commodities in action: measuring embeddedness and imposing values

Recent approaches in political economy look at the effects of technology and social values on economic action. Combining these approaches with those of economic anthropologists, this article poses that the way the economy is instituted can be understood by looking at reasons actors have for participating in actor‐networks of production, distribution and consumption. Using the author's research on American recycling, this article first shows that much of the‘making’or instituting of the economy happens outside the market, through political machinations, contracts and standards. Second, it suggests that these relationships impose value upon goods differently than do market relations. The details of the recycling‘chain’show the ways actors shape the network and demonstrate that the social values that add‘economic value’to goods are not uniform, but are highly contextual. Starting from Mark Granovetter's notion of 'social embeddedness', the article explains that the measure of social embeddedness is not as important as the values imposed upon other actors through social structure in the economy. It calls for a close observation of economic action in the locales within which production takes place to understand better the‘actions‐at‐a‐distance’where the politics of technology, social movements and power create the empirical, instituted economy.