Dignity and Dreams: What the Earned Income Tax Credit (EITC) Means to Low-Income Families
Jennifer Sykes, Katrin Križ, Kathryn Edin, and Sarah Halpern-Meekin
Money has meaning that shapes its uses and social significance, including the monies low-income families draw on for survival: wages, welfare, and the Earned Income Tax Credit (EITC). This study, based on in-depth interviews with 115 low-wage EITC recipients, reveals the EITC is an unusual type of government transfer. Recipients of the EITC say they value the debt relief this government benefit brings. However, they also perceive it as a just reward for work, which legitimizes a temporary increase in consumption. Furthermore, unlike other means-tested government transfers, the credit is seen as a springboard for upward mobility. Thus, by conferring dignity and spurring dreams, the EITC enhances feelings of citizenship and social inclusion.
Paradoxes of Social Policy: Welfare Transfers, Relative Poverty, and Redistribution Preferences
David Brady and Amie Bostic
Korpi and Palme’s (1998) classic “The Paradox of Redistribution and Strategies of Equality” claims that universal social policy better reduces poverty than social policies targeted at the poor. This article revisits Korpi and Palme’s classic, and in the process, explores and informs a set of enduring questions about social policy, politics, and social equality. Specifically, we investigate the relationships between three dimensions of welfare transfers—transfer share (the average share of household income from welfare transfers), low-income targeting, and universalism—and poverty and preferences for redistribution. We analyze rich democracies like Korpi and Palme, but we also generalize to a broader sample of developed and developing countries. Consistent with Korpi and Palme, we show (1) poverty is negatively associated with transfer share and universalism; (2) redistribution preferences are negatively associated with low-income targeting; and (3) universalism is positively associated with transfer share. Contrary to Korpi and Palme, redistribution preferences are not related to transfer share or universalism; and low-income targeting is neither positively associated with poverty nor negatively associated with transfer share. Therefore, instead of the “paradox of redistribution” we propose two new paradoxes of social policy: non-complementarity and undermining. The non-complementarity paradox entails a mismatch between the dimensions that matter to poverty and the dimension that matters to redistribution preferences. The undermining paradox emphasizes that the dimension (transfer share) that most reduces poverty tends to increase with the one dimension (low-income targeting) that reduces support for redistribution.
Executive Compensation, Fat Cats, and Best Athletes
Jerry W. Kim, Bruce Kogut, and Jae-Suk Yang
Income gains in the top 1 percent are the primary cause for the rapid growth in U.S. inequality since the late 1970s. Managers and executives of firms account for a large proportion of these top earners. Chief executive officers (CEOs), in particular, have seen their compensation increase faster than the growth in firm size. We propose that changes in the macro patterns of the distribution of CEO compensation resulted from a process of diffusion within localized networks, propagating higher pay among corporate executives. We compare three possible explanations for diffusion: director board interlocks, peer groups, and educational networks. The statistical results indicate that corporate director networks facilitate social comparisons that generate the observed pay patterns. Peer and education network effects do not survive a novel endogeneity test that we execute. A key implication is that local diffusion through executive network structures partially explains the changes in macro patterns of income distribution found in the inequality data.
Do Women Suffer from Network Closure? The Moderating Effect of Social Capital on Gender Inequality in a Project-Based Labor Market, 1929 to 2010
Mark Lutte
That social capital matters is an established fact in the social sciences. Less clear, however, is how different forms of social capital affect gender disadvantages in career advancement. Focusing on a project-based type of labor market, namely the U.S. film industry, this study argues that women suffer a “closure penalty” and face severe career disadvantages when collaborating in cohesive teams. At the same time, gender disadvantages are reduced for women who build social capital in open networks with higher degrees of diversity and information flow. Using large-scale longitudinal data on career profiles of about one million performances by 97,657 film actors in 369,099 film productions between the years 1929 and 2010, I analyze career survival models and interaction effects between gender and different measures of social capital and information openness. Findings reveal that female actors have a higher risk of career failure than do their male colleagues when affiliated in cohesive networks, but women have better survival chances when embedded in open, diverse structures. This study contributes to the understanding of how and what type of social capital can be either a beneficial resource for otherwise disadvantaged groups or a constraining mechanism that intensifies gender differences in career advancement.
International Human Rights and Domestic Income Inequality: A Difficult Case of Compliance in World Society
Wade M. Cole
Much research finds that human rights treaties fail to improve domestic practices unless governments are held accountable in some fashion. The implication is that noncompliance can be attributed to insincere commitments and willful disobedience. I challenge this claim for a core but overlooked treaty: the International Covenant on Economic, Social, and Cultural Rights (ICESCR). Few analysts have studied the ICESCR because its terms are difficult to implement and suitable measures for judging compliance are hard to find. I analyze its association with income inequality, using data for more than 100 countries (1981 to 2005) and methods that account for the possibility of reverse causality. ICESCR membership reduces inequality in both developed and developing countries, although the relationship is stronger for developed countries—precisely those with the greatest capacity to implement their obligations. Other key determinants of income inequality and treaty compliance—left partisanship, union density, workers’ rights, and democracy—do not systematically condition the effects of ICESCR membership. The ICESCR is therefore quite effective in reducing inequality, an outcome likely explained by renewed global attention to socioeconomic rights during the neoliberal era.
The Dynamics of Opportunity and Insurgent Practice: How Black Anti-colonialists Compelled Truman to Advocate Civil Rights
Joshua Bloom
Political opportunity theory has proven extremely generative, highlighting the importance of macro-structural shifts in making established authorities vulnerable to insurgent challenge. But as critics point out, political opportunity theory flattens both culture and agency, and has fared poorly in explaining the timing of insurgency. Re-theorizing opportunity as leveraged by particular practices, rather than independently conferring to groups, redresses these limits, revealing the proximate causes of mobilization and influence. For a strategic test, this article revisits the forging ground of opportunity theory. Why did President Harry S. Truman, initially an apologist for the slow pace of racial reform in 1945–46, suddenly become an avid advocate of civil rights? Opportunity scholars argue that macro-structural forces caused Truman to advocate civil rights, generating the opportunity for insurgency by blacks as a group. But event structure analysis reveals how Black Anti-colonialist practices leveraged opportunities afforded by the earlier Progressive Challenge to compel Truman to adopt civil rights advocacy. Civil rights advocacy, in turn, allowed Truman to repress Black Anti-colonialist practices, even while setting the stage for the Civil Rights Movement to come. Different forms of insurgent practice leveraged opportunities created by different institutional cleavages; the same opportunities did not advantage all insurgency by a social group.
Protest Campaigns and Movement Success: Desegregating the U.S. South in the Early 1960s
Michael Biggs and Kenneth T. Andrews
Can protest bring about social change? Although scholarship on the consequences of social movements has grown dramatically, our understanding of protest influence is limited; several recent studies have failed to detect any positive effect. We investigate sit-in protest by black college students in the U.S. South in 1960, which targeted segregated lunch counters. An original dataset of 334 cities enables us to assess the effect of protest while considering the factors that generate protest itself—including local movement infrastructure, supportive political environments, and favorable economic conditions. We find that sit-in protest greatly increased the probability of desegregation, as did protest in nearby cities. Over time, desegregation in one city raised the probability of desegregation nearby. In addition, desegregation tended to occur where opposition was weak, political conditions were favorable, and the movement’s constituency had economic leverage.
After State Socialism: The Political Origins of Transitional Recessions
Andrew G. Walder, Andrew Isaacson, and Qinglian Lu
Transitions from state socialism created a startling range of initial economic outcomes, from renewed growth to deep economic crises. Debates about the causes have largely ignored the political disruptions due to regime change that coincided with sudden initial recessions, and they have defined the problem as relative growth rates over time rather than abrupt short-run collapse. Political disruptions were severe when states broke apart into newly independent units, leading to hyperinflation, armed warfare, or both. Even absent these disruptions, the disintegration of communist parties inherently undermined economic activity by creating uncertainty about the ownership of state assets. The protracted deterioration of the party-state prior to the breakup of the Soviet Union generated widespread conflict over control of assets, which crippled economic activity across the Soviet successor states. A more rapid path to regime change was less disruptive in other post-communist states, and the problem was absent in surviving communist regimes. Comparative accounts of regime change frame an analysis of panel data from 31 countries after 1989 that distinguishes the early 1990s from subsequent years. A wide range of variables associated with alternative explanations have little evident impact in accounting for the onset and severity of the early 1990s recessions.
