2013 Presidential Address: Why Status Matters for Inequality
Cecilia L. Ridgeway
To understand the mechanisms behind social inequality, this address argues that we need to more thoroughly incorporate the effects of status—inequality based on differences in esteem and respect—alongside those based on resources and power. As a micro motive for behavior, status is as significant as money and power. At a macro level, status stabilizes resource and power inequality by transforming it into cultural status beliefs about group differences regarding who is “better” (esteemed and competent). But cultural status beliefs about which groups are “better” constitute group differences as independent dimensions of inequality that generate material advantages due to group membership itself. Acting through micro-level social relations in workplaces, schools, and elsewhere, status beliefs bias evaluations of competence and suitability for authority, bias associational preferences, and evoke resistance to status challenges from low-status group members. These effects accumulate to direct members of higher status groups toward positions of resources and power while holding back lower status group members. Through these processes, status writes group differences such as gender, race, and class-based life style into organizational structures of resources and power, creating durable inequality. Status is thus a central mechanism behind durable patterns of inequality based on social differences.
Does Immigration Undermine Public Support for Social Policy?
David Brady and Ryan Finnigan
There has been great interest in the relationship between immigration and the welfare state in recent years, and particularly since Alesina and Glaeser’s (2004) influential work. Following literatures on solidarity and fractionalization, race in the U.S. welfare state, and anti-immigrant sentiments, many contend that immigration undermines public support for social policy. This study analyzes three measures of immigration and six welfare attitudes using 1996 and 2006 International Social Survey Program (ISSP) data for 17 affluent democracies. Based on multi-level and two-way fixed-effects models, our results mostly fail to support the generic hypothesis that immigration undermines public support for social policy. The percent foreign born, net migration, and the 10-year change in the percent foreign born all fail to have robust significant negative effects on welfare attitudes. There is evidence that the percent foreign born significantly undermines the welfare attitude that government “should provide a job for everyone who wants one.” However, there is more robust evidence that net migration and change in percent foreign born have positive effects on welfare attitudes. We conclude that the compensation and chauvinism hypotheses provide greater potential for future research, and we critically consider other ways immigration could undermine the welfare state. Ultimately, this study demonstrates that factors other than immigration are far more important for public support of social policy.
Local Ethnic Composition and Natives’ and Immigrants’ Geographic Mobility in France, 1982–1999
Roland Rathelot and Mirna Safi
This article provides empirical results on patterns of native and immigrant geographic mobility in France. Using longitudinal data, we measure mobility from one French municipality (commune) to another over time and estimate the effect of the initial municipality’s ethnic composition on the probability of moving out. These data allow us to use panel techniques to correct for biases related to selection based on geographic and individual unobservables. Our findings tend to discredit the hypothesis of a “white flight” pattern in residential mobility dynamics in France. Some evidence does show ethnic avoidance mechanisms in natives’ relocating. We also find a strong negative and highly robust effect of co-ethnics’ presence on immigrants’ geographic mobility.
Reputation Formation and the Evolution of Cooperation in Anonymous Online Markets
Andreas Diekmann, Ben Jann, Wojtek Przepiorka, and Stefan Wehrli
Theoretical propositions stressing the importance of trust, reciprocity, and reputation for cooperation in social exchange relations are deeply rooted in classical sociological thought. Today’s online markets provide a unique opportunity to test these theories using unobtrusive data. Our study investigates the mechanisms promoting cooperation in an online-auction market where most transactions can be conceived as one-time-only exchanges. We first give a systematic account of the theoretical arguments explaining the process of cooperative transactions. Then, using a large dataset comprising 14,627 mobile phone auctions and 339,517 DVD auctions, we test key hypotheses about the effects of traders’ reputations on auction outcomes and traders’ motives for leaving feedback. Our statistical analyses show that sellers with better reputations have higher sales and obtain higher prices. Furthermore, we observe a high rate of participation in the feedback system, which is largely consistent with strong reciprocity—a predisposition to unconditionally reward (or punish) one’s interaction partner’s cooperation (or defection)—and altruism—a predisposition to increase one’s own utility by elevating an interaction partner’s utility. Our study demonstrates how strong reciprocity and altruism can mitigate the free-rider problem in the feedback system to create reputational incentives for mutually beneficial online trade.
Close, But No Cigar: The Bimodal Rewards to Prize-Seeking
Gabriel Rossman and Oliver Schilke
This article examines the economic effects of prizes with implications for the diversity of market positions, especially in cultural fields. Many prizes have three notable features that together yield an emergent reward structure: (1) consumers treat prizes as judgment devices when making purchase decisions, (2) prizes introduce sharp discontinuities between winners and also-rans, and (3) appealing to prize juries requires costly sacrifices of mass audience appeal. When all three conditions obtain, winning a prize is valuable, but seeking it is costly, so trying and failing yields the worst outcome—a logic we characterize as a Tullock lottery. We test the model with analyses of Oscar nominations and Hollywood films from 1985 through 2009. We create an innovative measure of prize-seeking, or “Oscar appeal,” on the basis of similarity to recent nominees in terms of such things as genre, plot keywords, and release date. We then show that Oscar appeal has no effect on profitability. However, this zero-order relationship conceals that returns to strong Oscar appeals are bimodal, with super-normal returns for nominees and large losses for snubs. We then argue that the effect of judgment devices on fields depends on how they structure and refract information.
How You Downsize Is Who You Downsize: Biased Formalization, Accountability, and Managerial Diversity
Alexandra Kalev
Scholars and pundits argue that women and minorities are more likely to lose their jobs in downsizing because of segregation or outright discrimination. In contrast, this article explores how the formalization and legalization of downsizing affect inequalities. According to bureaucracy theory and management practitioners, formalization constrains decision-makers’ bias, but neo-structural and feminist theories of inequality argue that formalization can itself be gendered and racially biased. Accountability theory advances this debate, pointing to organizational and institutional processes that motivate executives to minimize inequality. Building on these theories, and drawing on unique data from a national sample of 327 downsized establishments between 1971 and 2002, I analyze how layoff formalization and actors’ antidiscrimination accountability affect women’s and minorities’ representation in management after downsizing. Results demonstrate that, first, downsizing significantly reduces managerial diversity. Second, formalization exacerbates these negative effects when layoff rules rely on positions or tenure, but not when layoff rules require an individualized evaluation. Finally, antidiscrimination accountability generated by internal legal counsels or compliance awareness prods executives to override formal rules and reduce inequalities. I conclude that although downsizing has been increasingly managed by formal rules and monitored by legal experts, this has often meant the institutionalization of unequal, rather than equal, opportunity.
Dilettante or Renaissance Person? How the Order of Job Experiences Affects Hiring in an External Labor Market
Ming D. Leung
Social actors who move across categories are typically disadvantaged relative to their more focused peers. Yet candidates who compile experiences across disparate areas can either be appreciated as renaissance individuals or penalized as dilettantes. Extant literature has focused on the comparison between single versus multiple category members and on skill assessment, hindering its applicability. To discriminate between more versus less successful category spanners, I suggest that the order of accumulated experiences matters, because it serves as an indicator of commitment. I propose the concept of erraticism and predict that employers will prefer candidates who demonstrate some erraticism, by moving incrementally between similar jobs, over candidates who do not move and also over those with highly erratic job histories. Furthermore, I suggest this relationship holds for more complex jobs, less experienced freelancers, and is attenuated through working together. These issues are particularly salient given the rise of external labor markets where careers are increasingly marked by moves across traditional boundaries. I test and find support for these hypotheses with data from an online crowd-sourced labor market for freelancing services, Elance.com. I discuss how virtual mediated labor markets may alter hiring processes.
Unmasking the Conflicting Trends in Job Tenure by Gender in the United States, 1983–2008
Matissa N. Hollister and Kristin E. Smith
Americans are convinced that employment stability has declined in recent decades, but previous research on this question has led to mixed conclusions. A key challenge is that trends for men and women are in opposite directions and appear to cancel each other out. We clarify this situation by examining trends in employer tenure by sex, marital status, and parental status. We find that married mothers are behind the increase in women’s job tenure, but men and never-married women have seen declines in tenure. Furthermore, we show that the timing of tenure trends for women parallels periods of increased labor force attachment. Finally, we find that shifts in industry and occupation composition can account for the decline in tenure among men and never-married women before 1996 but not afterward. We situate these diverging trends in two broad shifts in expectations, norms, and behaviors in the labor market: the end-of-work discourse and the revolution in women’s identification with paid work. Our findings support the view that job tenure is declining for all groups, but women’s greater labor force attachment, especially their more continuous employment around childbirth, countered and masked this trend.
