The social order of transnational migration markets

The ‘infrastructural turn’ in labour migration studies has shifted attention away from the experiences of migrants to the role of public authorities and private actors in facilitating migrant mobilities. As part of a broader turn towards studying transnational mobilities rather than immigration and settlement, this research shows that the formalization of transnational labour migration has made mobility both freer and more difficult. In this article, I reinterpret mobility infrastructures from a market sociological perspective. Transnational labour migration, I argue, is more clearly conceptualized as the organized ‘making’ of cross‐border labour markets. Moreover, from a market sociological perspective the construction of cross‐border labour exchanges is at the same time a question of how the uncertainties inherent in market exchanges are coordinated by market actors. In its focus on how exchanges across borders are possible at all, a market sociological perspective makes note of the conflicting interests, power imbalances and uncertainties that must be handled for a social order of transnational migration markets to emerge. An important question concerns whether alternatives to the less regulated neo‐liberal market order that is evident in most migration corridors are possible and under what conditions. With reference to the challenges facing the regulation of cross‐border labour markets, in my conclusion, I map an agenda for future research.     

Value Chain Development and the Agrarian Question: Actor Perspectives on Native Potato Production in the Highlands of Peru

Value chain development seeks to integrate smallholder farmers into competitive markets to promote economic and social development. This article, conceptually based on the agrarian question, considers how the perspectives of various value chain actors, with particular focus on smallholders, have important implications for the outcomes of these market‐oriented initiatives. Utilizing Long’s concept of social interface, we present a mixed‐methods case study that analyzes how smallholders, an NGO, and agrifood corporations, including PepsiCo, partnered to establish value chains for native potatoes in the Peruvian highlands. We find that a thorough understanding of the various perspectives held by value chain actors provides important insight into why value chain initiatives have divergent trajectories. Based on the findings, we conclude that accounting for how actors are responding to development initiatives and one another helps explain development outcomes and that therefore the agrarian question remains relevant in current agricultural development discourse and practice.     

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.     

Innenansichten eines Wohlfahrtsmarkts

The 2001 pension reform act (“Riester reform”) has recast old-age security in Germany by placing more emphasis on private provisions. The new policy draws on markets and competitive structures in social welfare, as done earlier in long-term care and in public utilities. In the social welfare sector in Germany, such privatisation mostly goes hand in hand with a far-reaching “social” regulation of markets. Old-age pensions are the most recent case in point. For the first time, financial markets figure as welfare markets. This is done in the politically most sensitive sector of the German welfare state, old-age security. In theoretical terms, we interpret the change as a structural transformation of German “social capitalism”. Empirically, we investigate the structure of the new welfare market and the attitudes of the providers, based on a survey of all providers of private pensions in Germany. The findings include: (1) Markets can produce the welfare good “income security in old-age” only by way of a complex arrangement of three markets – financial markets, pension markets and markets for financial consultancy services. (2) The pension reform of 2001 has given rise to a new welfare market: an old-age pension market as a distinct sub sector of the wider market for financial investment and saving. The pension market constitutes a new field of business, with new actors, new products and new arenas of competition. The new market is created and shaped by politics. (3) The new private pension market combines market principles with welfare state principles. The providers conceive of their business as contributing to social security, and they recognise that the state sustains and structures the market.     

OUT OF UTOPIA:

An important segment of writings on postindustrialization is distinctly utopian in stressing the greater mastery and control made possible by recent innovations in information technology. The utopian theme underscores the technical outcomes of innovations and highlights their benefits for ameliorating social problems. By contrast, our work suggests that many of the social problems in contemporary society are a consequence of recent innovations in information technology. We argue that postindustrial theorists are correct in stressing mastery over certain technical problems but incorrect in slighting the destabilizing effect innovations have on organizations and the markets in which these organizations participate. These destabilizing effects complicate organizational strategies by increasing market risk and uncertainty. Since most organizations are risk aversive, social problems are created as organizations externalize their costs and pass along risk to other, more dependent actors. Illustrations from two institutions, politics and the economy, indicate that many postindustrial innovations are associated with heightened competition as well as greater risk and uncertainty across the institutional order. We conclude that postindustrial technology introduces no net gain in man aging the complexities of the social world. Risk and control are both integral to technological innovation and constitute the paradox of postindustrialization.     

Foreign trade barriers and jobs in global supply chains

This article uses ILO global supply chain job estimates to study the impact on domestic jobs of foreign barriers to trade in goods and services. Empirical analysis largely confirms predictions derived from a theoretical model calibrated to WIOD data for 2000 and 2011. Barriers to trade in manufacturing and services are both found to have a cross‐border impact on jobs in their own sector and spill‐over effects in other sectors, the latter becoming stronger over time. This article shows the labour market consequences of the increased interconnectedness of countries and sectors through global supply chains, which suggests that trade policy can have significant external effects on foreign labour markets.     

Ups and downs of art commerce: narratives of “crisis” in the contemporary art markets of Russia and India

This article develops an analytical framework to study the role of narratives in markets and argues that there is a relationship between the structure and composition of narratives produced by market actors and market dynamics. With respect to theory, the article bridges the perspectives that study markets as cultures and as fields and draws from the organizational studies approach to the analysis of narratives. Two empirical cases of the crises narratives in the emerging contemporary art markets of Russia and India illustrate the use of the framework. The analysis is based on in-depth interviews with artists and art dealers as well as observations in Moscow, Saint Petersburg, New Delhi, and Mumbai conducted between April 2012 and June 2013. The article shows that there is a widely shared crisis narrative with a coherent structure in the Indian art market. In contrast, fragmented and contested stories that lack narrative structure dominate in the Russian art market. The analysis of the first case highlights the narrative structure and shows the productive work it does in the Indian market—it provides a moral justification of existing market norms and produces a perspective for the future. The analysis of the second case focuses on the context of narrative production and connects the conflicting interpretations of the crisis in the Russian art market to contested hierarchies and persistent uncertainty.     

LIQUIDITY RISK AND TIME‐VARYING CORRELATION BETWEEN EQUITY AND CURRENCY RETURNS

Using the data of 20 major Organization for Economic Co‐operation and Development countries over time, this article documents new evidence on real equity and real currency prices: higher real returns in the home equity market relative to its foreign counterparts are generally associated with real home currency depreciation at monthly frequency, but this negative correlation breaks down or even reverses during times of relatively higher aggregate economic uncertainty or volatility. This article also argues that a long‐run risks‐type model with time‐varying liquidity risk in stock markets can provide one plausible explanation for the time‐varying correlation structure. (JEL E43, F31, G12, G15)     

Would a Commodity‐based Trade Approach Improve Market Access for Africa? A Case Study of the Potential of Beef Exports from Communal Areas of Namibia

Market access for African livestock products has long been stymied by a variety of animal diseases endemic in the region. The concept of commodity‐based trade (CBT) has been advanced to make trade dependent on process‐related attributes of production that ensure freedom from disease rather than the geographical origin of the animals themselves. This article looks at the potential of CBT in improving market access for beef from communal areas of Namibia, which have historically been excluded from high‐value export markets. Model results suggest only modest gains from CBT, given the substantial costs of compliance with SPS and quality standards required for high‐value markets. Regional markets may still offer the best option for beef exports from these areas.     

Introduction to the special theme: theorizing transnational labour markets

In this introduction to the special themed section, ‘Theorizing transnational labour markets: economic‐sociological approaches’, I introduce the reader to the topic and give an overview of the four contributions. The terms ‘global labour market’ and ‘transnational labour market’ are broadly used to account for contemporary social phenomena as diverse as the ever‐closer integration of China or India, with their huge labour forces, into the world economy, the off‐shoring of specific operations of MNCs to countries with cheap labour, or cross‐border labour migration. In most of these cases, the existence of global or transnational labour markets is taken for granted by the media, consulting agencies and other economic actors. However, scholars in labour market research and cross‐border migration alike have largely ignored the categories of global or transnational labour markets. Thus far, it remains unclear what these terms really mean and how we should address them theoretically. The aim of this themed section, therefore, is to view cross‐border labour migration through an economic‐sociological lens and thus bring into dialogue migration and labour market scholarship. By introducing a transnational perspective into labour market research, we hope to make a useful contribution towards theorizing on cross‐border labour markets and thereby overcome the methodological nationalism that seems to have crept into this area of scholarship.     

Impact of Political Risk and Uncertainty on FDI in South Asia

This study examines the potential effect of political risk and macroeconomic policy uncertainty on FDI in South Asia. To highlight the affect of political risk and macro policy uncertainty on FDI, we setup a theoretical framework based on oligopolistic and imperfect competition environment in host country. Autoregressive distributed lags (ARDL) is used to examine the impact of political risk and macro economic policy uncertainty index on FDI inflows. Macroeconomic policy uncertainty and political risk indices are constructed for this purpose. The long run results show negative affect of political risk and macroeconomic policy uncertainty indices on FDI inflows. Trade openness shows positive effect on FDI inflows only in short run while in long run it has negative impact on due lack of creditability regarding consistent trade liberalization policy and high trade cost. Furthermore, the market size significantly affects the inflow of FDI both in long run and short run which shows that FDI inflows in South Asia are mainly depend on market size. South Asian economies need to focus on political and macroeconomic factors along with FDI incentives policies to attract more FDI.     

Forms of uncertainty reduction: decision,valuation, and contest

Uncertainty is an intriguing aspect of social life. Uncertainty is epistemic, future-oriented, and implies that we can neither predict nor foresee what will happen when acting. In cases in which no institutionalized certainty about future states exists, or can be generated, judgment is needed. This article presents the forms by which uncertainty is reduced as a result of judgments made about different alternatives in a process involving several actors. This type of uncertainty may exist, for example, about which artist is the best, which offer in the market is more valuable, which football team is better than all the rest, or which research proposal will get a grant. The result of different forms of uncertainty reduction is increased certainty concerning alternatives in relation to one another, such as good and bad, rank lists, scores, quality assessment, and “winner and losers.” Based on the result, uncertainty is reduced and action is facilitated. The forms are structural and comprise roles; may be legitimate in a smaller or larger domain; and may exist in all spheres of life, as exemplified in sports competitions, in labor markets, and in the ranking of universities. Three forms of uncertainty reduction based on judgment are identified in this article: (1) decision, made by an authority; (2) valuation, by means of which order arises as a result of actors ascribing values; and (3) contest, by which an order is the result of direct struggle.     

The Efficacy of Regional Trade Agreements, 1958–2006: The Effect of Institution Creation on Market Expansion

This article examines the efficacy of regional trade agreements (RTAs) in promoting bilateral trade through a sociological lens that stresses institutional underpinnings of the market. Most RTAs are driven by economic neoliberalism and mainly focus on “negative integration” (direct removal of trade barriers such as tariffs and other regulations). Not all RTAs incorporate elements of “positive integration” (deliberate establishment of institutions supporting new markets). Using a large data set on international bilateral trade from 1958 through 2006, this study finds that incorporation of positive integration in an RTA increases its actual efficacy in promoting bilateral trade. It further distinguishes two major types of positive integration: (1) establishment of market institutions that directly regulate cross‐border markets and (2) establishment of social institutions that deal with social consequences of market expansion. Both types promote bilateral trade. The higher the level of positive integration, the more effective the RTA is in promoting bilateral trade. Overall, this study lends support to the sociological insight that creation of necessary institutions is essential for market expansion across borders. It also implies that positive integration has the potential to reconcile the seemingly contradictory goals of trade expansion and social protection.     

“Breaking Even” under Intensification? Gendered Trade‐Offs for Women Milk Marketers in Kenya*

Despite the commonly vaunted “win‐win” prospect of combining intensified livestock production with greater gender equality, the benefits of formal marketization of livestock products are generally skewed toward men. In response to this global trend, there is a growing impetus to better understand the gender dynamics underlying women's market participation to curtail the risk of worsening gender inequalities in agricultural systems transitioning to intensified production. This study analyzes the spectrum of women's informal milk market practices in two Kenyan Counties undergoing dairy system intensification. Qualitative data were gathered from dairy stakeholders and market traders to explore the localized system of gender relations mediating women's engagement with milk markets and current practices. Results indicate that increased dairy intensification and informal market use is challenging existing gender norms and disrupting the boundaries between hegemonic (socially acceptable) and pariah (socially disruptive) gender relations. While women are generally better able to control the proceeds from their dairy labor in informal markets, they also face high social culpability and danger from engaging in illicit activities that transgress local norms. These contradictory “win‐lose” dynamics and trade‐offs highlight the contested nature of gender market relations under agricultural intensification and commercialization currently being pursued under low emissions dairy development (LEDD) in Kenya. The risk of exacerbating existing gender inequalities has profound implications for LEDD and agricultural intensification more broadly.     

Arrangements for market intermediation and policies. Modernizing the fruit and vegetable market in France, 1950–1980

This article studies experiments in organizing the fruit and vegetable market from the 1950s till the late 1970s. It shows that there were alternatives to the principle of distribution, e.g. modernizing traditional wholesale markets (carreau) or setting up producer controlled veilings (marchés au cadran, or “clock auctions”). After exposing the rationale underlying each of these models, the empirical conditions are examined for actually implementing change. Attention is drawn to the factors that weigh on social actors in the market, in particular the tension between homogenization and concentration on the one hand, and, on the other hand, the uniqueness of products and transactions.     

Fashions, habits and changing preferences: Simulation of psychological factors affecting market dynamics

Markets can show different types of dynamics, from quiet markets dominated by one or few products, to markets with constant penetration of new and reintroduced products. This paper explores the dynamics of markets from a psychological perspective using a multi-agent simulation model. The behavioural rules of the artificial consumers, the consumats, are based on a conceptual meta-theory from psychology. The artificial consumers have to choose each period between similar products. Products remain in the market as long as they maintain a minimum level of market share, else they will be replaced by a new product. Assuming a population of consumats with different preferences, and social networks, the model simulates adoption of new products for alternative assumptions on behavioural rules. Furthermore, the consequences of changing preferences and the size of social networks are explored. Results show that the behavioural rules that dominate the artificial consumer's decision making determine the resulting market dynamics, such as fashions, lock-in and unstable renewal. Results also show the importance of psychological variables like social networks, preferences and the need for identity to explain the dynamics of markets.     

Informality and Contributory and Non‐Contributory Programmes. Recent Reforms of the Social‐Protection System in Uruguay

Several countries in Latin America are expanding their social‐protection systems. There is an on‐going debate about the trade‐offs implied by these expansions, and by the resulting interactions between contributory and non‐contributory programmes with informality in the labour market. This article analyses the potential incentive effects for formal and informal employment from a set of social‐protection reforms implemented in Uruguay in the 1990s and 2000s. It presents empirical evidence of the expansion of health insurance to formal workers' dependants, and finds that this reform significantly increased formal employment. Finally, it discusses possible alternatives to extend social‐protection systems while maintaining incentives for formal work in Latin America's labour markets.     

CAPACITY CONSTRAINED EXPORTERS: IDENTIFYING INCREASING MARGINAL COST

This study revisits a central assumption of standard trade models: constant marginal cost technology. The presence of increasing marginal costs for exporters introduces significant market interdependence across borders missing from traditional models of international trade that rely on constant marginal cost technology. Such market interdependence represents an additional channel through which local shocks are transmitted globally. To identify increasing marginal cost at the level of the firm, we build in flexible production assumptions that nest increasing, decreasing, and constant marginal cost technology to an otherwise standard international trade model. We derive an estimating equation that can be taken directly to the data. Our structural equation explicitly guides our inference on the shape of the marginal cost curve from estimated coefficients. The results suggest that increasing marginal cost is predominant at the firm level. Moreover, utilizing plant‐level information on physical and financial capacity constraints, we find that the degree of increasing marginal cost is significantly exacerbated by both types of constraints. The evidence suggests that access to larger markets through greater international integration may not have the expected welfare gains typically predicted in standard models. (JEL F12, F14)     

The Continuing Significance of Race in the Occupational Attainment of Whites and Blacks: A Segmented Labor Market Analysis*

In this article we posit that racial discrimination is not uniform across the U.S. labor market. While it is likely that patterns of racial discrimination occur in some types of jobs more than others, little empirical research has examined the effect of race across segmented labor markets. Incorporating two decades of comparable General Social Survey data, this article revisits William J. Wilson's hypothesis that the significance of race in determining labor market outcomes is declining. We examine the effect of race within two dissimilar labor segments over time, dividing the labor market into technique‐versus social‐skills‐oriented segments. Using this theoretically useful dichotomy, we examine if the net effect of race (African American and white men) on occupational prestige has declined from the 1970s to the 1990s. Our multivariate analysis shows that the net effect of race is different in each labor market. This suggests that racial discrimination against African Americans is not uniform across the entire labor market, but instead is differentiately manifested within various labor market segments. Overall, our findings partially support Wilson's thesis indicating that while the effect of race is no longer a significant indicator of occupational prestige by the 1990s in a technique‐oriented job segment, it remains a significant predictive variable within a social‐skills‐oriented job segment, even when controlling for a range of social class and structural variables.     

Why do drug treatment organizations use contingent staffing arrangements? An analysis of market and social influences

Contingent staffing arrangements are defined as conditional and transitory work arrangements. In the drug abuse treatment sector, contingent staffing arrangements have the potential to improve treatment if they are used to increase access to needed services. Alternatively, such arrangements could interfere with the development of consistent, long-term client-staff relationships. Unfortunately, little is known about the consequences of or influences on contingent staff arrangements in this sector. The goal of this study is to examine the conditions under which outpatient substance abuse treatment organizations are more likely to use contingent staffing arrangements. Building on previous research on the social organization of health care structures and practices, we develop a conceptual model based in market economics and institutional perspectives to suggest that treatment organizations choose contingent arrangements in response to market conditions and uncertainty, institutional demands, and client needs. Using data from a nationally representative study conducted in 1988, 1990, and 1995, we find limited evidence that drug treatment units use contingent staff in response to market pressures. Labor market and demand uncertainty, however, are systematically associated with greater use of contingent staff. Study results suggest that expectations and norms from the institutional environment, particularly the organizational context of the treatment unit are strong predictors of the use of contingent staff. By considering both market and social influences of contingent staffing, we contribute to a growing body of research on how markets and institutions interact to influence organizational structures and practices in the health care system.