Tag Archives: economics

the benefits of working women in marriage

115.365 - Porn for Women: VacuumingDoes a rise in women’s earning power have benefits to marriage beyond economic stability?  In an attempt to address this question, a recent New York Times article summarized some of the recent social scientific evidence on the rise of working women:

Last week, a report from the Pew Research Center about what it called “the rise of wives” revived the debate. Based on a study of Census data, Pew found that in nearly a third of marriages, the wife is better educated than her husband. And though men, over all, still earn more than women, wives are now the primary breadwinner in 22 percent of couples, up from 7 percent in 1970.

While the changing economic roles of husbands and wives may take some getting used to, the shift has had a surprising effect on marital stability. Over all, the evidence shows that the shifts within marriages — men taking on more housework and women earning more outside the home — have had a positive effect, contributing to lower divorce rates and happier unions.

The article points to demographic and sociological evidence that suggests greater marital stability and egalitarianism when a woman is more economically independent:

While it’s widely believed that a woman’s financial independence increases her risk for divorce, divorce rates in the United States tell a different story: they have fallen as women have made economic gains. The rate peaked at 23 divorces per 1,000 couples in the late 1970s, but has since dropped to fewer than 17 divorces per 1,000 couples. Today, the statistics show that typically, the more economic independence and education a woman gains, the more likely she is to stay married. And in states where fewer wives have paid jobs, divorce rates tend to be higher, according to a 2009 report from the Center for American Progress.

Sociologists and economists say that financially independent women can be more selective in marrying, and they also have more negotiating power within the marriage. But it’s not just women who win. The net result tends to be a marriage that is more fair and equitable to husbands and wives.

The changes are not without their challenges. “With women taking on more earning and men taking on more caring, there’s a lot of shifting and juggling,” said Andrea Doucet, a sociology professor at Carleton University in Ottawa. Her study, the Bread and Roses Project, tracks couples in the United States and Canada in which women are the primary breadwinners. But the dynamic is “not as easy as you’d think it would be,” she said. “You can’t just reverse the genders.”

Men, for instance, sometimes have a hard time adjusting to a woman’s equal or greater earning power. Women, meanwhile, struggle with giving up their power at home and controlling tasks like how to dress the children or load the dishwasher.

Highlighting additional sociological evidence:

Kristen W. Springer, a sociologist at Rutgers, has found that among men in their 50s, having a wife who earns more money is associated with poorer health. Among the highest earning couples in her study, a husband who earns less than his wife is 60 percent less likely to be in good health compared with men who earn more than their wives.

And despite the sweeping economic changes in marriage over the last 40 years, all is not equal. Even among dual-earning couples, women still do about two-thirds of the housework, on average, according to the University of Wisconsin National Survey of Families and Households. But men do contribute far more than they used to. Studies show that since the 1960s, men’s contributions to housework have doubled, while the amount of time spent caring for children has tripled.

And the blurring of traditional gender roles appears to have a positive effect. Lynn Prince Cooke, a sociology professor at the University of Kent in England, has found that American couples who share employment and housework responsibilities are less likely to divorce compared with couples where the man is the sole breadwinner.

you win some, you lose more

.01/.02 cent tables on full tiltTIME reports that a sociology doctoral student at Cornell University has found that knowing when to fold ‘em is a valuable skill beyond the poker table.

You can learn a lot about gambling if you’re willing to analyze 27 million hands of online poker. Don’t have time for that? No worries; sociology doctoral student Kyle Siler of Cornell University has done it for you. His counterintuitive message: the more hands you win, the more money you’re likely to lose — and this has implications that go well beyond a hand of cards.

Siler, whose work was published in December in the online edition of the Journal of Gambling Studies and will appear later this year in the print edition, was not interested in poker alone but in the larger idea of how humans handle risk, reward and variable payoffs. Few things offer a better way of quantifying that than gambling — and few gambling dens offer a richer pool of data than the Internet, where millions of people can play at once and transactions are easy to observe and record.

Why the more you win, the more you lose?

The reason for the paradoxical results was straightforward enough: the majority of the wins the players tallied were for relatively small stakes. But the longer they played — and the more confident they got — the likelier they were to get blown out on one or a few very big hands. Win a dozen $50 pots and you’re still going to wind up far behind if you lose a single $1,000 one. “People overweigh their frequent small gains vis-à-vis occasional large losses,” Siler says.

According to Siler, these results can be applied to life in general.

Investing, driving, buying a house and merely crossing the street are all acts that involve discernible risks and uncertain rewards. The more small returns you get from your small investments in stocks, the likelier you are to make — and lose — a big investment. The more times you get behind the wheel and speed a little bit, the likelier you are to speed a lot — with deadlier consequences.

“These kinds of calculations are made every day,” says Siler. “Adultery is another good example. People get away with it countless times but they get caught just once and they lose everything.”

The social implications?

And unlike the risks at the poker table, where your losses are just yours, in the larger world, you can take down a lot of other people with you. “Organizational malfeasance in general depends on this kind of risk analysis,” says Siler. “Look at a place like Enron. People took a lot of small chances and won, then took big chances and lost big.” Indeed, Siler points out, during the recent financial crisis, an entire nation — Iceland — went bankrupt in a similar way, trusting high-risk, high-reward investments that quit paying off.

‘Satan, the great motivator’

The Boston Globe explores the economic effects of religion, and reports:

A pair of Harvard researchers recently examined 40 years of data from dozens of countries, trying to sort out the economic impact of religious beliefs or practices. They found that religion has a measurable effect on developing economies – and the most powerful influence relates to how strongly people believe in hell.

That hell could matter to economic growth might seem surprising, since you can’t prove it exists, let alone quantify it. It stands as one of the more intriguing findings in a growing body of recent research exploring how religion might influence the wealth and prosperity of societies. In recent years, Italian economists have presented findings that religion can boost GDP by increasing trust within a society; researchers in the United States showed that religion reduces corruption and increases respect for law in ways that boost overall economic growth. A number of researchers have documented how merchants used religious backgrounds to establish one another’s reliability.

The researchers, Robert Barro and Rachel McCleary, find intriguing relationships:

Their results show a strong correlation between economic growth and certain shifts in beliefs, though only in developing countries. Most strikingly, if belief in hell jumps up sharply while actual church attendance stays flat, it correlates with economic growth. Belief in heaven also has a similar effect, though less pronounced. Mere belief in God has no effect one way or the other. Meanwhile, if church attendance actually rises, it slows growth in developing economies.

Other social scientists’ findings have been consistent with Barro and McCleary’s results, reviving classic Weber-esque questions about how religion affects economies:

On one level, the connection seems intuitive: All the major religions extol virtues like self-discipline, sacrifice, and thrift. Some even preach that earthly success translates to good things in the afterlife, a kind of gold-plated stairway to heaven. Religion can, quite directly, affect what you earn – fundamentalists and evangelicals in the United States tend to have lower savings rates and incomes than members of other religions, in part because they have larger families and give away more of their money.

Some find religion prompts specific behaviors that spark economic growth:

Charles M. North, an economist at Baylor University, argues that private property protections developed by the Church to guard against grasping secular rulers gave Catholic – and eventually Protestant – nations stronger protections for individual rights than other nations, creating incentive for individual success. Similarly, literacy seems clearly connected with economic development, and mass literacy is a Protestant invention, says Robert D. Woodberry, a sociologist at University of Texas at Austin. He has mapped how missionaries spread literacy, technology, and civic institutions, and finds that those correlate strongly with economic growth. He argues in part that this helps explain why the once-poor but largely Protestant United States surpassed rich, Catholic Mexico after 1800.

The bottom line:

The work is preliminary, but offers the hope of useful findings. Knowing exactly how and when God influences mammon could lead to smarter forms of economic development in emerging nations, and could add to our understanding of how culture shapes wealth and poverty. And it stands as part of a larger movement in economics, in which the field is looking beyond purely material explanations to a broader engagement with human culture, psychology, and even our angels and demons.

banking on crime

Ohio Lottery and PayDay LoansSociologists have found that it’s not just individuals who pay a high price for payday lending practices. Whole neighborhoods pay, too, in more than just monetary ways.

As reported by Reuters:

As Congress debates financial regulatory reform and the Obama Administration advocates for greater consumer financial protection, a new study finds a need for Congressional action on fringe banking practices used heavily by financially vulnerable families. The study released today details the toll on communities with a high concentration of payday lending business and finds a clear association between the presence of payday lenders and neighborhood crime rates. The study recommends that Congress take action to cap payday lender interest rates at 36 percent, enacting for the entire country protections Congress put in place for U.S. military families.  The new study, entitled “Does Fringe Banking ExacerbateNeighborhood Crime Rates? Social Disorganization and the Ecology of PaydayLending,” was conducted by The George Washington University professors Charis E. Kubrin and Gregory D. Squires, along with Dr. Steven M. Graves of California State University, Northridge.

Further…

These broader community costs include higher rates of violent crime.  The study found that the association between payday lending and violent crime remains statistically significant even after a range of factors traditionally associated with crime are controlled for statistically.

The sociological commentary…

“As a criminologist, I can attest to the fact that there is woefully limited research on the impact of the behavior of financial institutions on neighborhood crime.  As our research demonstrates, these connections can no longer be ignored by criminologists and law enforcement officials across the country,” said Charis Kubrin.

higher education doesn’t lead to empty pews

Dutch newspaper NRC Handelsblad recently reported on research forthcoming in the American Journal of Sociology that challenges the idea that increased education leads to decreased religiosity. According to the article,

Stijn Ruiter, senior researcher at the Netherlands Institute for the Study of Crime and Law Enforcement, and Frank van Tubergen, a professor of sociology in Utrecht, compared ‘religious participation’ in 60 countries. They found no effect of education, but instead came to the conclusion that social insecurity and the environment people grow up in have a significant impact.

The authors focus on church attendance rather than religious belief as their measure of religiosity, and this may help to explain their findings.  Van Tubergen says,

“Other research has shown that highly educated people are indeed less religious. But at the same time they tend to be more actively involved in political parties, associations and thus also in churches. Less educated people are more religious, but less active about it. There is a higher rate of churchgoers amongst educated believers than low-skilled believers.”

According to the authors, the level of economic security in a country is a stronger predictor of religious participation.

“The US has long been regarded as a special case: a developed country and scientific vanguard that is exceptionally religious. But past researchers did not take uncertainties resulting from the high socio-economic inequality into account. In the US you can quickly climb the social ladder, but you can fall off very hard,” Ruiter explains.

Van Tubergen: “Conversely, the link between religiosity and uncertainty explains why the churches in the Netherlands have emptied out. As a result of the welfare state great security can be found outside the walls of the church. It would be interesting to examine the impact of the current economic crisis on church attendance.”

the new meaning of economic recovery

Filthy LucreOn PBS’ NewsHour, business correspondent Paul Solman sat down with sociologist Sudhir Venkatesh to talk about how even though the economy is inching toward ‘recovery’ the perils of jobless and job-seeking Americans suggest a need for new metrics to evaluate economic recovery.

Solman reports:

According to Venkatesh, the days of a company giving someone a job for 10 years may be over; many American companies don’t know where they themselves will be in six months to a year. Instead, as companies hire more people for shorter periods of time, on a contract or freelance basis, we’ll need better ways to evaluate how this type of employment fits within our models of economic recovery.

Read more.

Watch the video.

decline in divorces during recession

green arrowThe BCC World Service Business Desk ran a story several days ago featuring an interview with Johns Hopkins University sociologist Andrew Cherlin. The discussion centered on how ordinary people are changed by the current global economic recession. Cherlin’s work suggests that although one might think that hard economic times would take a more severe toll on marriages, leading to more divorce, this is not the case. Instead, Cherlin explains, divorce is on the decline in our current recession, a trend mirroring the last significant rise in unemployment.

LISTEN TO THE INTERVIEW.

‘recession takes a toll on young, low-income families’

For SaleNational Public Radio (NPR) ran an interesting story yesterday about the effects of the recession on young, low income families, drawing up the expertise of well-known sociologist Maria Kefalas.

The NPR blurb:

Financial and emotional stability can be an elusive fantasy for young, low-income families. Writer Laura Sessions Stepp, who wrote about “fragile families” in this week’s Washington Post Magazine , discusses how unemployment and financial troubles can shatter even the most loving young families. And sociology professor Maria Kefalas explains how family stability has become a class privilege in America.

Listen to the broadcast, here.

the spending shift(?)

went shoppingWith the downturn in the economy, there has been significant debate about whether or not Americans’ spending habits have changed for good. An article in the Chicago Tribune explores the debate, with the benefit of some sociological commentary suggesting that the change might not be permanent.

The Tribune reports:

The past decade was one of splurging, as easy access to credit cards and home equity loans enabled Americans to live more lavishly than previous generations. But as the economy has come crashing down, some predict a permanent cultural shift in spending habits. Some anthropologists and economists say more consumers will be like [some Americans] and spend more practically. They’ll buy smaller houses, eat out less and save for big purchases.

Many consumers are being forced into these changes as they watch the value of their homes plummet or find themselves swimming in unmanageable debt. But for others it’s a moral shift as they realize that all that buying doesn’t add much to their lives. “People are at that higher level where they’re saying something is wrong with the way we’re spending and it has got to change,” said Robbie Blinkoff, co-founder and principal anthropologist at Context-Based Research Group. In conjunction with the Carton Donofrio Partners Inc. advertising and marketing firm, it recently surveyed people about the economy’s impact on their spending.

The survey found that a new “grounded” consumer is emerging. These consumers are realizing that life is not defined by what they buy and that credit isn’t a true measure of their financial worth. They’re moving to limit the amount of “stuff” in their lives, the survey found. And they’re learning to live within their means. “The consumer will go through this process of evaluating what stuff they bring into their life to make sure it brings meaning into their life,” Blinkoff said. “They’ll be less superfluous.”

The economist thinks the changes will be permanent…

“It’s going to have to be a new way of life,” he said. Christopher Carroll, a professor of economics at Johns Hopkins University, said more people are realizing that things they once saw as necessities are actually luxuries. Debt is forcing many of the changes.

“What we’ll end up with is an economy where there is more investment, less of a trade deficit and spending is more in line with income,” Carroll said.

But the sociologist thinks otherwise…

Sara Raley, an assistant professor of sociology at McDaniel College in Westminster, Md., with a specialty in consumerism, said shopping is too big a part of people’s lifestyles to be drastically changed. She recently asked her students to name things they couldn’t live without and many listed cell phones, high-speed Internet and multiple televisions.

She also said television, movies and other entertainment media promote luxury living too much.

“I don’t think we’ll see permanent change unless we see some large structural change in the way we idolize consuming,” Raley said. Jean Johnson, an event planner who lives in Suitland, Md., is being a little more cautious with spending but doesn’t plan to abandon her shopping habits anytime soon–especially her shoe habit. The 46-year-old, who shops about once a week, said it’s something she enjoys.

“There are still going to be plenty of people out there who shop,” she said.

Read more.

“men bearing the brunt of the layoffs”

Business Week ran a story over the weekend about how the economic meltdown is hitting male-dominated jobs, such as those in car manufacturing and finance, much harder than the service sector, where jobs are more often held by women. 

Good thing they call upon a sociologist to sort this out for their readers…

“In a society where services are becoming increasingly important, women quite simply have the better jobs,” says Hans Bertram, a sociologist at the Humboldt University in Berlin.

Bertram is not at all surprised by the fact that it is men who are worst affected by the crisis. “That was historically always the case, for example when you look at the collapse of the steel and coal industries in the Ruhr industrial region,” he says. Unemployment has always been a part of life in an industrialized country, and belongs to the rhythm of industrial society. “As long as someone is young and strong, he can make good money as a construction worker. But once you are 35 and your body won’t cooperate any more, there are fewer prospects,” Bertram explains.

He thinks it unlikely that, for example, former Opel workers will simply retrain to work in the service sector. “You can’t turn a steel worker into a call center agent,” he says. The service industry usually requires higher qualifications and these are not easily acquired later on in life, he explains.

“The change will only come with the generations,” Bertram says. “Perhaps young men will now more often decide against becoming a mechanic or a construction worker and instead opt to train as a nurse.”

Read more.