Tag Archives: economics

Stay-at-Home Mothers on the Rise among Low-Income Families

“Stay-at-home mother” evokes black and white images of well-coiffed women in starched aprons. Rather than a vestige of a bygone era, stay-at-home moms are on the rise, according to the findings of a new Pew Research study. In 2012, 29% of women with children under the age of 18 stayed home, a number that has been on the rise since 1999 and is 3% higher than in 2008.

However, while more women are staying home with their children, the face of the stay-at-home mom has changed dramatically since the 1950s “Leave It to Beaver” days. Stay-at-home moms today are less educated and more likely to live in poverty than working moms. Younger mothers and immigrant mothers also make up a good portion of stay-at-home moms.

The story of why mothers are staying home is more complex than you may imagine and has more to do with the poor labor market, the exorbitant price of child care, and the contemporary structure of work. In a recent interview with Wisconsin Public RadioBarbara Risman, a sociologist at the University of Illinois at Chicago, spoke about how this report has been picked up by the mainstream media:

What’s surprising to me is the headlines and how it’s portrayed in the news. Although the numbers are going up, when you look at what mothers say, 6% of the mothers in this study say they are home because they can’t find a job. When you take those 6% of mothers out, the results are rather flat. Part of the real story here then is that it’s hard to find a job that allows you to work and covers your child care, particularly if you have less education and your earning potential isn’t very high.

These days stay-at-home moms, who are more likely to be less educated, are not able to make enough money for working to even be worthwhile. Many times, their pay wouldn’t actually cover the cost of child care. Beyond these important financial considerations, lower wage shift work makes it extremely difficult to coordinate child care in the midst of work schedules that change on a weekly basis.

Erin Hoekstra is pursuing a PhD in Sociology at the University of Minnesota. This post originally appeared on Citings and Sightings and you can read all of Erin’s contributions to The Society Pages here.  Cross-posted at Pacific Standard.

Money as a Social Construction

We all know that, on some basic level, money is purely symbolic.  It only works because everyone collectively agrees to participate in the fantasy that a dollar bill is worth a dollar, whatever that is.  Moreover, most of our money these days is purely electronic, represented by ones and zeros and real only in the most abstract sense possible.

Christopher Ingraham at the Washington Post offered another way of thinking about money as a social construction: how much it costs to make it.  None of our coins are actually worth what they cost, and pennies and nickels are worth quite a bit less.

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The excess cost of producing pennies and nickels means a budget deficit for the Treasury. In 2013, producing the coins cost the government $105 million dollars above and beyond the coins’ value.

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Interestingly, moves to eliminate pennies have been successfully opposed by the zinc industry for years, illustrating another sociological phenomenon: the power of corporations to shape government decisions.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Saturday Stat: The U.S. is a “Low Tax Country”

This chart comes from Chuck Marr at the Center on Budget and Policy Priorities.  As Marr explains:

The United States is a relatively low-tax country, as the chart shows.  When measured as a share of the economy, total government receipts (a broad measure of revenue) are lower in the United States than in any other member of the Organization for Economic Co-operation and Development (OECD), even after accounting for the modest revenue increases in the 2012 “fiscal cliff” deal and the taxes that fund health reform.

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Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Where Did Your 2013 Tax Dollars Go?

Each  year the National Priorities Project releases a visual illustrating how our tax dollars are spent.  This is the one for 2013, sans medicare and social security taxes.

1At the end of Sociology 101, I like to ask my students: “What is the state for?”  This often takes them aback, as most of them have never considered the question before.  Is it for defense?  It is to maximize happiness or reduce misery?  Is it for maximizing GDP?  Protecting private property?  Do we want to use it to influence other countries?  How?

There are many questions to ask and they are not purely theoretical.  I like how the spending of our tax dollars helps make the conversation more concrete.

Cross-posted at Business Insider.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Overwork And Its Costs: The U.S. in International Perspective

On average, U.S. workers with jobs put in more hours per year  than workers in most OECD countries. In 2012, only Greece, Hungary, Israel, Korea, and Turkey recorded a longer work year per employed person.

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A long work year is nothing to celebrate. The following chart, from the same Economist article, shows there is a strong negative correlation between yearly hours worked and hourly productivity.

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More importantly, the greater the number of hours worked per year, the greater the likelihood of premature death and poor quality of life.  This reality is highlighted in the following two charts taken from an article by Angus Chen titled “8 Charts to Show Your Boss to Prove That You Can Do More By Working Less.”

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In sum, we need to pay far more attention to the organization and distribution of work, not to mention its remuneration and purpose, than we currently do.

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Diverse Countries Do Better with Female Heads of State

Countries with a lot of ethnic diversity generally show weaker economic growth than homogeneous countries.  A new study, however, discovered a variable that strongly reverses the trend: women leaders.

Management professor Susan Perkins and her colleagues compared the economic growth rate of 139 countries over 55 years.  They found that diverse countries did significantly better when a woman was at the helm.  The more diverse the country, the stronger the effect.

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Perkins and her co-authors cautiously attempt to explain their data (here), but think that it may have something to do with leadership style.  Female leaders have been shown to be more collaborative and non-authoritarian than men. Co-author Nicholas Pearce speculates:

In countries with a lot of internal conflict, oftentimes people are looking for signals that the person in charge is going to be collaborative and not dictatorial or self-interested. Women’s gender role is symbolic of collaboration, that they’re going to empower marginalized voices.

Because of gender stereotypes, then, women may seem more trustworthy. Meanwhile, real differences in leadership style may affirm those expectations and be more effective in practice.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Chicago’s Disappearing Middle Class

By now most readers are likely familiar with the idea that the American middle class is shrinking.  Most income and wealth gains over the past 40 or so years have gone to the richest Americans, while poverty is spreading and getting deeper.  As a result, the percent of Americans who can reasonably claim to be middle class is shrinking.

I found a fantastic animation illustrating this process in the neighborhoods of the city of Chicago.  Borrowing data from education scholar Sean Reardon and sociologist Kendra Bischoff, Daniel Hertz calculated where the  median family income of each Census tract fell relative to the entire metropolitan area.  Orange tracts are ones where the median family income is 0-45% of the median for Chicago as a whole (struggling families), dark green tracts are ones where the median is 200% or more (resource rich families).  Grey is, literally, middle class.

For simplicity’s sake, here is 1970 and 2012 right next to one another.  Notice that the 1970 map involves a lot more grey (middle class) and the 2012 map involves a lot more green (rich) and especially orange (poor).

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Here’s the animation:

1For another interesting measure of the shrinking middle class, see our post showing increases in high paying and low paying jobs, but decreases in jobs that pay middle income wages.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

The Rich to the Poor: Do What I Say, Not What I Do

Economic policies often rest on assumptions about human motivation.  Here’s Rep. Ryan (Republican of Wisconsin):

The left is making a big mistake here. What they’re offering people is a full stomach and an empty soul. People don’t just want a life of comfort. They want a life of dignity — of self-determination.

Fox News has been hitting the theme of “Entitlement Nation” lately. This Conservative case against things like Food Stamps, Medicare, welfare, unemployment benefits, etc rests on some easily understood principles of motivation and economics.

1.    Giving money or things to a person creates dependency and saps the desire to work. That’s bad for the person and bad for the country.
2.    A person working for money is good for the person and the country.
3.    We want to encourage work.
4.    We do not want to encourage dependency.
5.    Taxing something discourages it.

Now that you’ve mastered these, here’s the test question:

1. According to Conservatives, which should be taxed more heavily:

a.    money a person earns by working.
b.    money a person receives without working, for example because someone else died and left it in their will.

If you said “b,” you’d better go back to Conservative class. A good Conservative believes that the money a person gets without working for it should not be taxed at all.

Not all such money, of course.  Lottery tickets are bought disproportionately by lower-income people.  If a person gets income by winning the PowerBall or some other lottery, the Federal government taxes the money as income. Conservatives do not object.  But if a person gets income by winning the rich-parent lottery, Conservatives think he or she should not pay any taxes.

What Conservatives are saying to you is this: working for your money is not as good as instead of inheriting it. This message seems to contradict the principles listed above. But, as Jon Stewart recently pointed out, Conservatives apply those principles of economics and motivational psychology only to the poor, not to wealthy individuals or corporations.

Cross-posted at Montclair SocioBlog and the Huffington Post.

Jay Livingston is the chair of the Sociology Department at Montclair State University. You can follow him at Montclair SocioBlog or on Twitter.