This article sheds light on the ongoing employment stagnation in the United States by investigating the links between the rise of finance and firm employment dynamics during the 1982–2005 period. I argue that the rise of finance marginalized the role of labor in revenue generating and sharing processes, which led to employment stagnation among the largest nonfinancial firms in the United States. Evidence suggests that increasing investment in financial assets depresses the workforce size. The growing dependence on debt reprioritizes the order of distribution, heightening the need for workforce reduction. The increasing rewards for shareholders generate a downsize-and-distribute spiral, in which labor expense becomes a primary target of cost-cutting strategies. Further analysis indicates that production and service workers are more vulnerable to shifts associated with the rise of finance than managers and professionals.
AbstractThis article assesses the connection between immigration and wage inequality in the United States. Departing from the focus on how the average wages of different native groups respond to immigration, we examine how immigrants shape the overall wage distribution. Despite evidence indicating that an increased presence of low-skilled immigrants is associated with losses at the lower end of wage distribution, we do not observe a similar result between high-skilled immigrants and natives at the upper end. Instead, the presence of foreign-born workers, whether high- or low-skilled, is associated with substantial gains for high-wage natives, particularly those at the very top. Consequently, increased immigration is associated with greater wage dispersion.
'Divested' documents how the ascendance of finance on Wall Street, Main Street, and in households is a fundamental cause of economic inequality in the United States. This wide-ranging and comprehensive account demonstrates the many ways financial sector has reshaped the economy, leaving the average American adrift in a world driven by the logic of finance and the maximisation of profit.
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Wage inequality in the United States has risen dramatically over the past few decades, prompting scholars to develop a number of theoretical accounts for the upward trend. This study argues that large firms have been a prominent labor-market institution that mitigates inequality. By compensating their low- and middle-wage employees with a greater premium than their higher-wage counterparts, large U.S. firms reduced overall wage dispersion. Yet, broader changes to employment relations associated with the demise of internal labor markets and the emergence of alternative employment arrangements have undermined large firms' role as an equalizing institution. Using data from the Current Population Survey and the Survey of Income and Program Participation, we find that in 1989, although all private-sector workers benefited from a firm-size wage premium, the premium was significantly higher for individuals at the lower end and middle of the wage distribution compared to those at the higher end. Between 1989 and 2014, the average firm-size wage premium declined markedly. The decline, however, was exclusive to those at the lower end and middle of the wage distribution, while there was no change for those at the higher end. As such, the uneven declines in the premium across the wage spectrum could account for about 20% of rising wage inequality during this period, suggesting that firms are of great importance to the study of rising inequality. The online appendix is available at https://doi.org/10.1287/orsc.2017.1125 .
Previous research documents a growing wage premium for elite financial workers since the 1980s. A second line of research finds substantial gender disparities in earnings and career mobility among elite financial workers. Yet little is known about whether women in finance still receive a wage premium compared with their nonfinance counterparts. In addition, few studies examine whether similar gender disparities exist among nonelite financial workers. This article examines how the wage premium for working in the financial sector varies by gender and parental status across the wage distribution. We report that women earn a greater wage premium than men in low-wage financial jobs, while almost all of the increase in wages in high finance is captured by elite men, particularly fathers. Consequently, the financial sector simultaneously exacerbates and mitigates gender inequalities at different locations of the labor market. Our findings highlight the significance of institutional context in amplifying and attenuating the reward and penalty associated with gender and parental status.
The 2008 collapse of the world financial system, while proximately linked to the housing bubble and risk-laden mortgage backed securities, was a consequence of the financialization of the U.S. economy since the 1970s. This article examines the institutional and income dynamics associated with the financialization of the U.S. economy, advancing a sociological explanation of income shifts into the finance sector. Complementary developments include banking deregulation, finance industry concentration, increased size and scope of institutional investors, the shareholder value movement, and dominance of the neoliberal policy model. As a result, we estimate that between 5.8 and 6.6 trillion dollars were transferred to the finance sector since 1980. We conclude that understanding inequality dynamics requires attention to market institutions and politics.
While racial assortative mating and interracial unions have been a central interest in the study of race relations and family demography since the early twentieth century, there have been marked changes in the social contexts in which these processes have taken place in recent decades. This review article examines three important shifts: (a) the rise of population diversity and its impact on traditional views of racial integration, (b) the changing institution of marriage in American life, and (c) the increasing centrality of technology. We discuss how these societal shifts have challenged traditional understandings of preferences, opportunities, and intermediaries in the mate selection process, as well as new opportunities for interracial intimacy that these changes have introduced. We conclude with a discussion on conceptual issues and promising future research directions.
The decline of employment-based health plans is commonly attributed to rising premium costs. Using restricted data and a matched sample from the Medical Expenditure Panel Survey–Insurance Component, the authors extend previous studies by testing the relationships among premium costs, employment relationships, and the provision of health benefits between 1999 and 2012. The authors report that both establishment- and state-level union densities are associated with a higher likelihood of employers' providing health plans, whereas right-to-work legislation is associated with lower provision. These factors combined rival rising premium cost in predicting offering. This finding indicates that the declining provision of health benefits could be in part driven by the transformation of the employment relationship in the United States and that labor unions may remain a critical force in sustaining employment-based coverage in the twenty-first century.
Recent waves of legislation have made it much easier for gun owners to obtain a Concealed Handgun License (CHL) and thereby carry their guns in public except when explicitly prohibited. Because data are difficult to access, our understanding of who seeks and obtains such licenses remains limited. Using data obtained through Freedom of Information Act requests, this article fills this empirical gap by describing demographic trends and characteristics of applicants for CHLs in five states: Florida, Indiana, Massachusetts, Texas, and Utah. The results establish that (1) applications for CHLs are growing at fast rates; (2) there are significant gender and racial disparities in terms of who applies for CHLs, with men 2.9 to 5.5 times more likely to apply than women, and whites 1.3 to 2.0 times more likely to apply than blacks; (3) in Florida and Utah, these demographic gaps have widened over time; and (4) there are significant racial disparities in terms of application outcomes, with black applicants being 3.3 to 5.5 times more likely to be denied a license than white applicants. Moreover, we do not find the patterns in Massachusetts, a may-issue state, to be significantly different from the shall-issue states in our sample.