Research Findings

Respectful leadership may help employees overcome the “think manager, think male” effect

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September 12, 2018

Female leadership is a crucial agenda item for major corporations. Over the past years, the perception of female leaders has improved, along with the increased participation of women in the workforce. However, for many people, the mental model for leader still fits the phrase “think manager—think male”. Likewise, a large-scale survey of the German socio-economic panel shows that women are still falling behind when it comes to high-level promotions.

The negative attitude towards female leadership not only affects how women are perceived in their leadership role, but also negatively influences the performance of their subordinates. In our research, we set out to understand the processes that keep this negative image in place, and investigated whether a respectful leadership strategy could counter the effects.

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Research Findings

How can we improve low- and moderate-income families’ social mobility?

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September 5, 2018

A core belief of many Americans is that society should provide equal opportunity to its members. Embedded in this belief is the idea that hard work is rewarded and that everyone has a chance of success regardless of the circumstances of their birth; many people refer to this as the American Dream. Unfortunately,

In the U.S., 42 percent of adult men whose parents were in the bottom income quintile when they were born remain in the bottom quintile as adults. 62 percent of U.S. men and women born into the top quintile remain in the top two-fifths as adults. Economist Richard Burkhauser and his colleagues describe this phenomenon as “stickiness at the ends.” Our study provides insight into processes that help maintain stickiness and foster social mobility at the bottom.

Low- and moderate-income families face constraints that limit their choices. For example, exploitative subprime mortgages and the Great Recession resulted in Black and Latino families losing more than 50 percent of their wealth between 2005 and 2009, compared to 16 percent for White families. Based on current trends, scholars calculate that it will take 228 years to close the wealth gap between Black and White families and 84 years to close the gap between White and Latino families.

These issues frame our research and allow us to focus on how low- and middle-income families take advantage of social mobility pathways generally reserved for the middle class. Sociologist Glen Elder describes agency as the “choices and actions [individuals] take within the opportunities and constraints of history and social circumstances.” This study examines how some low- and moderate-income families are able to build assets and move to reasonably-priced rental housing in safe neighborhoods with good schools and other amenities, while others are stuck in place.

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Research Findings

Are there birth order differences in college major, and does that matter?


August 29, 2018

Many people have an opinion about the importance of birth order. They might recall that while their parents gave them a curfew, that didn’t apply to their younger brother. Or that their parents idolized the oldest child. The interesting thing is, research suggests that birth order actually does influence the long-term paths that people follow in life.

Previous research has shown that, compared to first-borns, later-born siblings in the same family tend to have lower grades in high school, are less likely to go to university, achieve a lower overall level of education, have less prestigious occupations in adulthood, and also make less money.

Furthermore, it is not just a difference between first-borns and all later-born siblings; the second-born typically does worse than the first-born, the third-born does worse than the second-born, and so on. These patterns are observed amongst children who grew up in the same family, and can be seen across families of all sizes.

In our study we wanted to extend this research to see whether there are birth order differences in what siblings choose to study if they go to university. College major can matter a lot for long-term outcomes.

Research in the United States and Norway has shown that the difference in long-term earnings between the most lucrative and the least lucrative college major can be as large as the earnings gap between those who go to college and those who do not.

Examining whether there are birth order differences in college major would help us to further understand the effects of birth order on education. Furthermore, birth order differences in college major might explain part of the long-term birth order differences observed in occupational prestige and earnings, given the importance of college major for those outcomes.

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Research Findings

Field of work determines pay, and increasingly so


August 27, 2018

Sociologists have traditionally considered occupation—field of work—a central factor in differentiating people’s life chances. This post summarizes new research reinvigorating sociology’s preoccupation with occupation. It suggests that field of work is a critical factor determining pay, and increasingly so, and that this is the case because different occupations involve different tasks.

Occupational tasks and wages

For a number of years now, I have been studying how occupation relates to pay in the United Kingdom. In this research, I have found that occupations have become a stronger predictor of earnings since the 1970s such that occupations explain the majority of wage inequality and its growth in the United Kingdom. Moreover, this trend has shown no sign of reversal even with the wage stagnation of the last decade.

But how might we explain the connection between field of work and pay, and why the connection might be evolving? An exciting new approach examines the task content of occupations.

At the heart of this idea is that pay is attached to particular types of tasks: Different tasks command different rates of pay in the labor market. Since tasks are differentially bundled together across occupations, some occupations pay more than others.

Since the value of tasks is not constant, this approach might also explain why some occupations’ wages rise faster than others. For instance, sociologists Liu and Grusky examined the growth in wage inequality in the United States and found that occupational tasks explain most of the rise in between-occupation inequality there.

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Research Findings

The price employers pay for employees’ financial precarity


August 25, 2018

It is difficult to overlook the growing number of reports and studies documenting the downward spiral of personal financial wellness within the United States. The American Psychological Association, for example, indicates that finances have become a more frequently cited source of stress than work, family, or health concerns. The Federal Reserve Board further reports that half of the population does not have $400 in the event of an emergency, while spending equals or exceeds income for many households.

As Neal Gabler summarizes in the Atlantic, “In the 1950s and ‘60s, economic growth democratized prosperity. In the 2010s, we have democratized financial insecurity.”

Although rising debt and stagnating incomes are often ascribed as the main culprits for this turn of events, the impact of historic changes in employment relations and the organization of work on these trends tends to be understated if not go unmentioned. Research suggests that companies have increasingly relied on contingent workers, adopted variable pay and scheduling schemes, laid off employees, and increased employees’ share of the costs and risk associated with fringe benefits since the mid-1970s, which in sum has created a context for financial uncertainty and precarity to thrive among a substantial segment of the population.

Given the contribution of changing work practices to the current crisis in personal finance in the United States, an open question that has not received much attention is whether these trends carry economic implications for employers.

We set out to answer this question by collaborating with a national transportation company to collect survey data from over 1,000 short-haul truck drivers and track their accident rates for the subsequent 8 months.

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Research Findings

By giving greater relief to the highest earners, the charitable deduction disadvantages charities which protect the most vulnerable


August 22, 2018

By the end of this month, the Internal Revenue Service will have received about 140 million individual tax returns. Many of those who have filed this year will have hoped to see greater tax relief than they have years past. The tax legislation passed by Congress in December 2017 promised to lower the tax burden for a large swath of American households. One way it does this is by doubling the standard deduction—the baseline deduction in taxable income every taxpayer is eligible to take. Taxpayers are celebrating the change, but charitable organizations are decidedly less enthusiastic about it.

Charities are aggrieved because a larger standard deduction will likely reduce the number of taxpayers who itemize their deductions (rather than take the standard deduction) —and the number of taxpayers who take the tax deduction for charitable contributions (which I refer to as the charitable deduction). The charitable deduction is only available to itemizers, currently about a third of taxpayers. It works by lessening the cost of charitable gifts proportionally by one’s marginal income tax rate; i.e., the after-tax cost of charitable gifts declines as one’s income bracket increases. Now that the standard deduction has doubled in size, some taxpayers who itemized in years past will likely take the standard deduction this year and will no longer have a tax-related motivation for making donations.

This means we might see a dip in charitable giving. Charities have not hesitated to register their displeasure about this. As the tax legislation began to take form last fall, charities began to express their concerns that a diminished itemizer class would strip them of their ability to meet basic needs. In a statement to New York Times columnist Ann Carns, Feeding America executive Diana Aviv explained how a potential decline in charitable giving would “devastate [their] ability to provide food assistance;” Orvin Kimbrough of the United Way of Greater St. Louis voiced his concerns in similarly stark terms: “This is about people’s lives.”

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Research Findings

Which professional jobs are better for mothers?

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August 20, 2018

Compared to other workers, mothers face a number of disadvantages, including lower wages, bias in recruitment and promotion, and a greater risk of joblessness. These disadvantages may be more prevalent in professional jobs where ‘ideal worker’ norms are most salient. Professional employers tend to view mothers as less competent and committed than other workers—a major stigma in careers that require around-the-clock dedication.

These biases are so strong that employers often discriminate against mothers irrespective of their experience, skill or job commitment.

Our own research has shown that employers use a variety of strategies to shed, demote and otherwise marginalize professional mothers, including screening mothers out of the recruitment process or channeling them into positions with lower pay, prestige and responsibility.

But little is known about which kinds of professional jobs are better—or worse—for working mothers.

What role does job context play in shaping professional mothers’ access to highly skilled professional jobs? In a recent study we sought to answer this question. Our analysis drew on 51 in-depth interviews with employers in two professional sectors in Hungary: finance and business services. These two sectors allowed us to compare the ways job context shapes recruitment and hiring norms and practices.

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Research Findings

How rising income inequality exacerbates racial economic disparities


August 7, 2018

Fifty years after the civil rights movement, racial economic inequality remains a major fact of American life. In fact, the gap in family income between blacks and whites has been almost perfectly constant since the 1960s.

In a recent study, I show that the persistence of the racial income gap results from two opposing trends. Over the last 50 years there has been real if incomplete progress towards racial equality in income ranks negated by the national trend of rising income inequality overall.

In 1968, just after the Civil Rights Movement, the median African American had family income 57% that of the median white American. In 2016, the ratio was 56%. The utter lack of progress is striking.

It’s also a bit puzzling, because real efforts were made to reduce discrimination in employment and equalize access to education and other resources needed to succeed in the United States.

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Book review

Bullshit about jobs

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July 31, 2018

The current trend for fashionable post- and anti-work thinking has been given a boost by David Graeber’s book Bullshit Jobs, recently featured in an RSA event and accompanying video. Graeber’s critique of the modern world of work has been understandably popular and gained widespread media coverage. Stemming from a provocative piece in Strike magazine five years ago, the concept has spawned not just the book, but spin-off articles about the ‘bullshitization of academic life’, alongside similar efforts from others.

The bullshit job thesis (BJT) rests on two main claims. First that workers actually do hate their jobs or at least find no meaning or pleasure in them. The only reason we do such jobs are coercive effects of necessity and the work ethic. Secondly, as many as half of all jobs are ‘pointless’, have no social value and could be abolished without personal, professional or societal cost. The only reason they exist is for show, indicating that the boss has status or that time is being filled. The two claims are joined together by the view that, these ‘forms of employment are seen as utterly pointless by those who perform them’.

You’d have to be excessively hard hearted not to get some gratification from the BJT. Nobody likes managerialist jargon and telemarketers – as one of us should know, having worked the phones for four years in a past life. Plus, it’s not difficult to find humorous examples of people doing wasteful or daft tasks at work. But the two central claims of the BJT are an evidence-free zone. This is not the image promoted by Graeber and his fellow travellers. Much rests on an endlessly re-cycled 2015 YouGov poll, also reported by universal basic income enthusiast and author of Utopia for Realists Rutger Bregman, which showed that 37% of British workers think that their job doesn’t need to exist.  The thing is, they didn’t say that at all. 37% said that their job didn’t ‘make a meaningful contribution to the world’. Well, that’s hardly surprising as that loaded question sets a very high bar. What is more surprising is that 50% said their jobs did make a meaningful contribution! The same poll found 63% found their job very or fairly ‘personally fulfilling’, while 33% did not. This non-bullshit outcome is entirely consistent with other evidence of high levels of work attachment. For example, the widely used longitudinal sampling of the Workplace Employment Relations Survey shows that, job satisfaction increased between 2004-2011 and that 72% were satisfied or very satisfied with ‘the work itself’, while 74% had a ‘sense of achievement’.

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Research Findings

How occupational gender segregation leads to the paradox of the contented female worker


July 29, 2018

The gender wage gap in Germany is higher than in most other European countries and the U.S. In 2017, women in Germany earned about 21 percent less on average than men. Despite this, women compared to men usually report that their wages are more just.

This puzzling finding, also known as “the paradox of the contented female worker,” has been detected in several studies from the U.S. and other countries since the 1980s. An explanation for this paradox, however, has remained elusive.

Some scholars argue that the paradox is a product of inherent differences in how men and women experience and perceive wage inequality. Their argument is that men place more value on wages. In contrast, women are thought to consider other dimensions of work—such as work-life balance or a good working atmosphere—as more important than wages. Little in the way of empirical support for this differential job value hypothesis, however, has been offered.

Another possibility is that men and women draw on distinct referents or comparative standards when assessing the fairness of the compensation they receive. In support of this, some scholars who investigated the salience of pay referents have shown that others working in the same occupation and who are of the same gender are the most important referents for wage comparisons.

My research broadens this perspective by assuming that occupational gender segregation within the labor market constrains the availability of a preferred same-gender referent standard. The idea is that women in female-dominated occupations will mostly compare their earnings with those of other women and, thus, are less likely to detect gender wage inequality.

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