Advertisement

The Sociological and Economic Approaches to Labor Market Analysis

A Social Structural View
  • Mark Granovetter
Part of the Springer Studies in Work and Industry book series (SSWI)

Abstract

This chapter reviews recent economic and sociological work on labor markets, concentrating on studies whose comparison is particularly revealing of differences in strategies and underlying assumptions between the disciplines. The sociological studies reviewed are especially those stressing the embeddedness (Granovetter, 1985) of labor market behavior in networks of social interaction and demographic constraints. Most of these studies share with microeconomics the stance of “methodological individualism” (see Blaug, 1980:49–52) that attempts to ground all explanations in the motives and behaviors of individuals, but they differ in emphasizing social structural constraints and in avoiding the functionalist arguments now common in neoclassical work.

Keywords

Labor Market American Economic Review Labor Mobility Wage Growth Contact Network 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Abraham, Katharine, and James Medoff. 1983. “Length of Service and the Operation of Internal Labor Markets.” Sloan School of Management Working Paper, 1394–83. Massachusetts Institute of Technology.Google Scholar
  2. Akerlof, George. 1982. “Labor Contracts as Partial Gift Exchange.” Quarterly Journal of Economics 97: 543–569.CrossRefGoogle Scholar
  3. Akerlof, George. 1984. “Gift Exchange and Efficiency-Wage Theory: Four Views.” American Economic Review 74: 79–83.Google Scholar
  4. Akerlof, George, and Brian Main. 1980. “Unemployment Spells and Unemployment Experience.” American Economic Review 70: 885–893.Google Scholar
  5. Akerlof, George, and H. Miyazaki. 1980. “The Implicit Contract Theory of Unemployment Meets the Wage Bill Argument.” Review of Economic Studies 47: 321–338.CrossRefGoogle Scholar
  6. Azariadis, C. 1975. “Implicit Contracts and Underemployment Equilibria.” Journal of Political Economy 83: 1183–1202.CrossRefGoogle Scholar
  7. Baily, Martin. 1974. “Wages and Unemployment Under Uncertain Demand.” Review of Economic Studies 41: 37–50.CrossRefGoogle Scholar
  8. Bakke, E. W., editor. 1954. Labor Mobility and Economic Opportunity. Cambridge, MA: MIT Press.Google Scholar
  9. Bartel, Ann, and George Borjas. 1981. “Wage Growth and Job Turnover: An Empirical Analysis.” Pp. 65–90 in Studies in Labor Markets, edited by S. Rosen. Chicago: University of Chicago Press.Google Scholar
  10. Becker, Gary. 1976. The Economic Approach to Human Behavior. Chicago: University of Chicago Press.Google Scholar
  11. Blaug, Mark. 1980. The Methodology of Economics. New York: Cambridge University Press.Google Scholar
  12. Blau, Peter. 1963. The Dynamics of Bureaucracy. Chicago: University of Chicago Press.Google Scholar
  13. Blau, Peter. 1964. Exchange and Power in Social Life. New York: Wiley.Google Scholar
  14. Bluedorn, Allen. 1982. “The Theories of Turnover: Causes, Effects and Meaning.” Pp. 75–128 in Research in the Sociology of Organizations, Vol. 1, edited by S. Bacharach. Greenwich, CT: JAI Press.Google Scholar
  15. Boorman, Scott. 1975. “A Combinatorial Optimization Model for the Transmission of Job Information Through Contact Networks.” Bell Journal of Economics 6: 216–249.CrossRefGoogle Scholar
  16. Brissenden, Paul, and Emil Frankel. 1922. Labor Turnover in Industry: A Statistical Analysis. New York: Macmillan.Google Scholar
  17. Clark, Kim, and Lawrence Summers. 1979. “Labor Market Dynamics and Unemployment.” Brookings Papers on Economic Activity 1: 13–60.CrossRefGoogle Scholar
  18. Clark, Kim, and Lawrence Summers. 1982. “The Dynamics of Youth Unemployment.” Pp. 199–234 in The Youth Labor Market, edited by R. Freeman and D. Wise. Chicago: University of Chicago Press.Google Scholar
  19. Cole, Robert. 1979. Work, Mobility and Participation: A Comparative Study of American and Japanese Industry. Berkeley: University of California Press.Google Scholar
  20. Corcoran, Mary, Linda Datcher, and Greg Duncan. 1980. “Information and Influence Networks in Labor Markets.” Pp. 1–37 in Five Thousand American Families: Patterns of Economic Progress, Vol. 8, edited by Greg Duncan and James Morgan. Ann Arbor: Institute for Social Research.Google Scholar
  21. Corcoran, Mary and Martha Hill. 1980. “Persistence in Unemployment among Adult Men.” In Five Thousand American Families: Patterns of Economic Progress, Vol. 8, edited by Greg Duncan and James Morgan. Ann Arbor: Institute for Social Research.Google Scholar
  22. Dalton, Melville. 1959. Men Who Manage. New York: Wiley.Google Scholar
  23. Delany, John. 1980. Aspects of Donative Resource Allocation and the Efficiency of Social Networks: Simulation Models of Job Vacancy Information Transfers Through Personal Contacts. Unpublished doctoral dissertation, Yale University, Department of Sociology.Google Scholar
  24. DiPrete, Thomas. 1981. “Unemployment over the Life Cycle.” American Journal of Sociology 87: 286–307.CrossRefGoogle Scholar
  25. Disney, R. 1979. “Recurrent Spells and the Concentration of Unemployment in Great Britain.” Economic Journal 89: 109–119.CrossRefGoogle Scholar
  26. Doeringer, Peter, and Michael Piore. 1971. Internal Labor Markets and Manpower Analysis. Lexington, MA: D. C. Heath.Google Scholar
  27. Dunlop, John T. 1957. “The Task of Contemporary Wage Theory.” Pp. 117–139 in New Concepts in Wage Determination, edited by G. Taylor and F. Pierson. New York: McGraw-Hill.Google Scholar
  28. Eccles, Robert. 1985. The Transfer Pricing Problem. Lexington, MA: D. C. Heath.Google Scholar
  29. Elster, Jon. 1979. Ulysses and the Sirens. New York: Cambridge University Press.Google Scholar
  30. Erdos, P., and A. Renyi. 1960. “On the Evolution of Random Graphs.” Publications of the Mathematical Institute of the Hungarian Academy of Sciences 5A: 17–61.Google Scholar
  31. Ericksen, Eugene, and William Yancey. 1980. “The Locus of Strong Ties.” Mimeo, Department of Sociology, Temple University, Philadelphia.Google Scholar
  32. Feldstein, Martin. 1973. “The Economics of the New Unemployment.” Public Interest 33: 3–42.Google Scholar
  33. Feller, William. 1957. An Introduction to Probability Theory and Its Applications, Vol. 1. New York: Wiley.Google Scholar
  34. Flinn, Christopher, and James Heckman. 1982a. “New Methods for Analyzing Individual Event Histories.” Pp. 99–140 in Sociological Methodology, edited by S. Leinhardt. San Francisco: Jossey-Bass.Google Scholar
  35. Freeman, Richard. 1980. “The Exit-Voice Tradeoff in the Labor Market: Unionism, Job Tenure, Quits and Separations.” Quarterly Journal of Economics 94: 643–676.CrossRefGoogle Scholar
  36. Freeman, Richard, and James Medoff. 1980. “The Two Faces of Unionism.” Public Interest 39: 69–93.Google Scholar
  37. Gartrell, C. David. 1982. “On the Visibility of Wage Referents.” Canadian Journal of Sociology 7: 117–143.CrossRefGoogle Scholar
  38. Ghez, Gilbert. 1981. “Comment on Bartel and Borjas.” Pp. 84–89 in Studies in Labor Markets, edited by S. Rosen. Chicago: University of Chicago Press.Google Scholar
  39. Gordon, David, Richard Edwards, and Michael Reich. 1982. Segmented Work, Divided Workers. New York: Cambridge University Press.Google Scholar
  40. Gould, Steven, and Richard Lewontin. 1979. “The Spandrels of San Marco and the Panglossian Paradigm: A Critique of the Adaptationist Programme.” Proceedings of the Royal Society of London B205: 581–598.CrossRefGoogle Scholar
  41. Gouldner, Alvin. 1954. Patterns of Industrial Bureaucracy. Glencoe, IL: Free Press.Google Scholar
  42. Granovetter, Mark. 1973. “The Strength of Weak Ties.” American Journal of Sociology 78: 1360–1380.CrossRefGoogle Scholar
  43. Granovetter, Mark. 1974. Getting a Job: A Study of Contacts and Careers. Cambridge, MA: Harvard University Press.Google Scholar
  44. Granovetter, Mark. 1981. “Toward a Sociological Theory of Income Differences.” In Sociological Perspectives on Labor Markets, edited by I. Berg. New York: Academic Press.Google Scholar
  45. Granovetter, Mark. 1983. “The Strength of Weak Ties: A Network Theory Revisited.” Sociological Theory 1: 201–233.CrossRefGoogle Scholar
  46. Granovetter, Mark. 1984. “Small Is Bountiful: Labor Markets and Establishment Size.” American Sociological Review 49: 323–334.CrossRefGoogle Scholar
  47. Granovetter, Mark. 1985. “Economic Action and Social Structure: The Problem of Embeddedness.” American Journal of Sociology 91: 481–510.CrossRefGoogle Scholar
  48. Greene, Richard. 1982. “Tracking Job Growth in Private Industry.” Monthly Labor Review 105 (9): 3–9.Google Scholar
  49. Hall, Robert. 1980. “Employment Fluctuations and Wage Rigidity.” Brookings Papers on Economic Activity 1: 91–123.CrossRefGoogle Scholar
  50. Hall, Robert. 1982. “The Importance of Lifetime Jobs in the U.S. Economy.” American Economic Review 72: 716–724.Google Scholar
  51. Heath, Anthony. 1976. Rational Choice and Social Exchange. New York: Cambridge University Press.Google Scholar
  52. Heckman, James. 1978. “Simple Statistical Models for Discrete Panel Data Developed and Applied to Test the Hypothesis of True State Dependence against the Hypothesis of Spurious State Dependence.” Annales de l’INSEE 30–31: 227–269.Google Scholar
  53. Heckman, James. 1981. “Heterogeneity and State Dependence.” Pp. 91–139 in Studies in Labor Markets, edited by S. Rosen. Chicago: University of Chicago Press.Google Scholar
  54. Hirschman, Albert. 1977. The Passions and the Interests. Princeton: Princeton University Press.Google Scholar
  55. Homans, George. 1950. The Human Group. New York: Harcourt Brace World.Google Scholar
  56. Homans, George. 1974. Social Behavior. New York: Harcourt Brace Jovanovich.Google Scholar
  57. Iannaccone, Laurence. 1988. “A Formal Model of Church and Sect.” American Journal of Sociology Google Scholar
  58. Johnson, William. 1978. “A Theory of Job Shopping.” Quarterly Journal of Economics 93: 261–277.Google Scholar
  59. Jovanovic, Boyan. 1979a. “Job Matching and the Theory of Turnover.” Journal of Political Economy 87: 972–990.CrossRefGoogle Scholar
  60. Jovanovic, Boyan. 1979b. “Firm-Specific Capital and Turnover.” Journal of Political Economy 87: 1246–1260.CrossRefGoogle Scholar
  61. Kerr, Clark. 1954. “The Balkanization of Labor Markets.” Pp. 92–110 in Labor Mobility and Economic Opportunity, edited by E. W. Bakke, P. Hauser, G. Palmer, C. Myers, D. Yoder, and C. Kerr. Cambridge, MA: M.I.T. Press.Google Scholar
  62. Kleinrock, L. 1964. Communication Nets: Stochastic Message Flow and Delay. New York: McGraw-Hill.Google Scholar
  63. Kuran, Timur. 1986. “Preference Falsification, Policy Rigidity and Social Conservatism.” Mimeo, Department of Economics, University of Southern California.Google Scholar
  64. Langlois, Simon. 1977. “Les Reseaux Personnels et la Diffusion des Informations sur les Emplois.” Recherches Sociographiques 2: 213–245.CrossRefGoogle Scholar
  65. Lin, Nan, M. Ensel, and J. Vaughn. 1981. “Social Resources and Strength of Ties: Structural Factors in Occupational Status Attainment.” American Sociological Review 46: 393–405.CrossRefGoogle Scholar
  66. Lincoln, James. 1982. “Infra- (and Inter-) Organizational Networks.” Pp. 1–38 in Research in the Sociology of Organizations, Vol. 1, edited by S. Bacharach. Greenwich, CT: JAI Press.Google Scholar
  67. Main, Brian. 1982. “The Length of a Job in Great Britain.” Economica 49 195: 325–333.CrossRefGoogle Scholar
  68. Malcolmson, James M. 1984. “Work Incentives, Hierarchy and Internal Labor Markets.” Journal of Political Economy 92: 486–507.CrossRefGoogle Scholar
  69. March, James C., and James G. March. 1977. “Almost Random Careers: The Wisconsin School Superintendency, 1940–1972.” Administrative Science Quarterly 22: 377–408.CrossRefGoogle Scholar
  70. March, James C., and James G. March. 1978. “Performance Sampling in Social Matches.” Administrative Science Quarterly 23: 434–453.CrossRefGoogle Scholar
  71. Medoff, James, and Katharine Abraham. 1980. “Experience, Performance and Earnings”. Quarterly Journal of Economics 95: 703–736.CrossRefGoogle Scholar
  72. Medoff, James, and Katharine Abraham. 1981. “Are Those Paid More Really More Productive? The Case of Experience.” Journal of Human Resources 16: 186–216.CrossRefGoogle Scholar
  73. Merton, Robert. 1947. Social Theory and Social Structure. New York: Free Press.Google Scholar
  74. Meyer, Robert, and David Wise. 1982. “High School Preparation and Early Labor Force Experience.” Pp. 277–348 in The Youth Labor Market Problem, edited by R. Freeman and D. Wise. Chicago: University of Chicago Press.Google Scholar
  75. Mincer, Jacob, and Boyan Jovanovic. 1981. “Labor Mobility and Wages.” Pp. 21–63 in Studies in Labor Markets, edited by S. Rosen. Chicago: University of Chicago Press.Google Scholar
  76. Mostacci-Calzavara, Liviana. 1982. Social Networks and Access to Job Opportunities. Doctoral disseration, Department of Sociology, University of Toronto.Google Scholar
  77. Okun, Arthur. 1980. Prices and Quantities. Washington D.C.: Brookings Institution.Google Scholar
  78. Pencavel, John. 1972. “Wages, Specific Training and Labor Turnover in U.S. Manufacturing Industries.” International Economic Review 13: 53–65.CrossRefGoogle Scholar
  79. Pfeffer, Jeffrey. 1977. “Toward an Examination of Stratification in Organizations.” Administrative Science Quarterly 22: 553–567.CrossRefGoogle Scholar
  80. Pfeffer, Jeffrey. 1983. “Organizational Demography.” Pp. 299–357 in Research in Organizational Behavior, Vol. 5, edited by L. L. Cummings and B. Shaw, Greenwich, CT: JAI Press.Google Scholar
  81. Price, James. 1977. The Study of Turnover. Ames: University of Iowa Press.Google Scholar
  82. Reynolds, Lloyd. 1951. The Structure of Labor Markets. New York: Harper.Google Scholar
  83. Roethlisberger, Fritz, and William Dickson. 1939. Management and the Worker. Cambridge, MA: Harvard University Press.Google Scholar
  84. Rosen, Sherwin. 1978. “Substitution and the Division of Labour.” Economica 45 179: 235–250.CrossRefGoogle Scholar
  85. Rosen, Sherwin. 1981. “Introduction”. In Studies in Labor Markets, edited by S. Rosen. Chicago: University of Chicago Press.CrossRefGoogle Scholar
  86. Rosenbaum, James. 1979a. “Organizational Career Mobility: Promotion Chances in a Corporation during Periods of Growth and Contraction.” American Journal of Sociology 85: 21–48.CrossRefGoogle Scholar
  87. Rosenbaum, James. 1979b. “Tournament Mobility: Career Patterns in a Corporation.” Administrative Science Quarterly 24: 220–241.CrossRefGoogle Scholar
  88. Rosenbaum, James. 1981. “Careers in a Corporate Hierarchy.” In Research in Social Stratification and Mobility, Vol. 1, edited by D. Treiman and R. Robinson. Greenwich, CT: JAI Press.Google Scholar
  89. Rosenbaum, James. 1984. Career Mobility in a Corporate Hierarchy. New York: Academic Press.Google Scholar
  90. Ross, Arthur. 1958. “Do We Have a New Industrial Feudalism?” American Economic Review 48: 903–920.Google Scholar
  91. Roy, A. D. 1953. “Some Thoughts on the Distribution of Earnings.” Oxford Economic Papers.Google Scholar
  92. Sattinger, Michael. 1980. Capital and the Distribution of Labor Earnings. New York: North-Holland.Google Scholar
  93. Sayles, Leonard. 1958. The Behavior of Industrial Work Groups. New York: Wiley.Google Scholar
  94. Sekscenski, E. 1980. “Job Tenure Declines as Work Force Changes.” Special Labor Force Report No. 235. Washington, D.C.: Bureau of Labor Statistics.Google Scholar
  95. Shack-Marquez, Janice, and Ivar Berg. 1982. “Inside Information and the Employer-Employee Matching Process.” Fels Discusssion Paper 159, School of Public and Urban Policy, University of Pennsylvania.Google Scholar
  96. Shapero, A., R. Howell, and J. Tombaugh. 1965. The Structure and Dynamics of the Defense R and D Industry: The Los Angeles and Boston Complexes. Menlo Park, CA: Stanford Research Institute.Google Scholar
  97. Slichter, Sumner. 1919. The Turnover of Factory Labor. New York: Appleton.Google Scholar
  98. Slichter, Sumner. 1920. “The Scope and Nature of the Labor Turnover Problem.” Quarterly Journal of Economics 34: 329–345.CrossRefGoogle Scholar
  99. Smith, Adam. 1976. The Wealth of Nations. Chicago: University of Chicago Press. ( Originally published 1776 )Google Scholar
  100. Solow, Robert. 1980. “On Theories of Unemployment.” American Economic Review 70: 1–11.Google Scholar
  101. Somers, G., and M. Tsuda. 1966. “Job Vacancies and Structural Change in Japanese LaborGoogle Scholar
  102. Markets.“ In The Measurement and Interpretation of Job Vacancies,edited by R. Ferber. New York: Columbia University Press.Google Scholar
  103. Sonnenfeld, Jeffrey. 1980. “Hawthorne Hoopla in Perspective: Contextual Illumination and Critical Illusions.” Working Paper No. HBS 81–60. Boston, MA: Harvard Business School.Google Scholar
  104. Sorensen, Aage. 1974. “A Model for Occupational Careers.” American Journal of Sociology 80: 44–57.CrossRefGoogle Scholar
  105. Sorensen, Aage, and Nancy Tuma. 1981. “Labor Market Structures and Job Mobility.” In Research in Social Stratification and Mobility, Vol. 1, edited by D. Treiman and R. Robinson. Greenwich, CT: JAI Press.Google Scholar
  106. Spence, Michael. 1974. Market Signaling. Cambridge, MA: Harvard University Press.Google Scholar
  107. Stern, Jon. 1979. “Who Bears the Burden of Unemployment?” In Slow Growth in Britain, edited by W. Beckerman. Oxford: Oxford University Press.Google Scholar
  108. Stewman, Shelby, and Suresh Konda. 1983. “Careers and Organizational Labor Markets: Demographic Models of Organizational Behavior.” American Journal of Sociology 88: 637–685.CrossRefGoogle Scholar
  109. Taira, Koji. 1970. Economic Development and the Labor Market in Japan. New York: Columbia University Press.Google Scholar
  110. Taira, Koji, and Telichi Wada. 1987. “The Japanese Business-Government Relations: A TodaiYakkai-Zaikai Complex?” Pp. 264–297 in The Structural Analysis of Business, edited by M. Schwartz and M. Mizruchi. New York: Cambridge University Press.Google Scholar
  111. Thurow, Lester. 1975. Generating Inequality. New York: Basic Books.Google Scholar
  112. Tilly, Charles. 1978. From Mobilization to Revolution. Reading, MA: Addison-Wesley.Google Scholar
  113. Tuma, Nancy. 1976. “Rewards, Resources and the Rate of Mobility: A Non-Stationary Multivariate Stochastic Model.” American Sociological Review 41: 338–360.CrossRefGoogle Scholar
  114. Weber, Max. 1968. Economy and Society. Translated and edited by G. Roth and C. Wittich. Totowa, NJ: Bedminster Press. (Originally published 1921 )Google Scholar
  115. White, Harrison. 1970. Chains of Opportunity: System Models of Mobility in Organizations. Cambridge, MA: Harvard University Press.Google Scholar
  116. Whyte, William F. 1955. Money and Motivation. New York: Harper.Google Scholar
  117. Williamson, Oliver. 1975. Markets and Hierarchies. New York: Free Press.Google Scholar
  118. Williamson, Oliver, M. Wachter, and J. Harris. 1975. “Understanding the Employment Relation: The Analysis of Idiosyncratic Exchange.” Bell Journal of Economics 6: 250–278.CrossRefGoogle Scholar
  119. Willis, Robert, and Sherwin Rosen. 1979. “Education and Self-Selection.” Journal of Political Economy 87: S7 — S36.CrossRefGoogle Scholar
  120. Yellen, Janet. 1984. “Efficiency-Wage Models of Unemployment.” American Economic Review 74: 200–210.Google Scholar

Copyright information

© Springer Science+Business Media New York 1988

Authors and Affiliations

  • Mark Granovetter
    • 1
  1. 1.Department of SociologyState University of New York at Stony BrookStony BrookUSA

Personalised recommendations