ECONOMIC SOCIOLOGY

Sociology 920:375

Paul McLean

 

Department of Sociology

Rutgers University

Spring 2003

 

 

Location and time: Beck Hall 250, MW 1:10-2:30

Office Hours: Mondays, 11:15-1:00 and Thursdays, 9:00-10:00; LSH A336

Phone: 445-3705

E-mail: pmclean@rci.rutgers.edu

Website : http://www.rci.rutgers.edu/~pmclean/

 

 

A basic feature of any society is that it produces and/or distributes goods and services necessary for survival.  Yet this production and distribution is not only economic in character, but also profoundly social, in that production and distribution originate in a social context, are guided by and in turn affect social structures, involve organized institutional and symbolic practices, and have a variety of important social outcomes. Economic sociology purports to study the various connections between economic action and social life.  It is one of the most burgeoning and heterogeneous fields in the discipline of sociology today, encompassing a huge variety of theoretical perspectives, methodologies, and empirical foci.  Yet there remains a great deal of contention over just what economic sociology is and how broadly it should be construed.  This class is designed as an overview of some of the different perspectives and key arguments comprising the field, including both classical texts and contemporary books and articles.

 

A number of texts are available for purchase from the Livingston Campus Bookstore.  These are:

 

1)       Adam Smith, The Wealth of Nations (Chicago, 1976)

2)       Adam Smith, The Theory of Moral Sentiments (Liberty Classics, 1982)

3)       Karl Marx, The Marx-Engels Reader, 2nd edition (Norton, 1978)

4)       Karl Polanyi, The Great Transformation (Beacon Press, 1980)

5)       Malcolm Gladwell, The Tipping Point (Back Bay Books, 2002)

6)       Viviana Zelizer, The Social Meaning of Money (Princeton, 1997)

7)       Katherine Newman, No Shame in My Game: The Working Poor in the Inner City (RSF, 1999)

8)       Bruce Carruthers and Sarah Babb, Economy/Society: Markets, Meanings, and Social Structure (Pine Forge Press, 2000)

 

Most of the required readings come from one of these books.  However, there are a handful of required journal articles and other short readings, marked with a double asterisk (**), which generally you can obtain by looking under the Economic Sociology heading on my website.  I may also place a few items on electronic reserve for you.  During the course of the semester on various occasions, I will provide one-page handout readings from the New York Times that illustrate some of the ideas and arguments we will be talking about.  I encourage you to look for the same kinds of materials!  Finally, there are also LOTS of other readings I can suggest for those of you interested in pursuing a particular topic.

 

Requirements and Evaluation

 

                I will spend a good deal of time each class lecturing on the assigned readings and other topics or arguments relevant to them.  Nonetheless, I also encourage you to ask questions and to generate discussion of the themes we consider.  To further the object of having lively discussions, groups of students will rotate through the responsibility for assisting me with activating and maintaining discussion each class.   These students must come to class with a three-sentence outline of the main argument of that day’s reading, and three questions prompted by it.  They will have circulated their questions to everyone in the class, including myself, via email by 8:00 p.m. the day before the class.   If I do not receive your outline and questions by then, you will not get credit for them.  Class participation (including attendance, effort, and writing good summaries and questions for class) will constitute 20% of the final grade.  In addition students must complete the following requirements:

 

1)       TWO 5 to 6-page papers, one due around sixth week, the other due around 12th week, based on topics I will provide, that draw on key ideas from the readings.  Each essay is worth 20% of the final grade.

2)       A final exam, held in Beck 250 on Tuesday, May 13, 12:00-3:00 p.m., worth 40% of the final grade.

 

 

Class Schedule

 

Week 1

 

January 22             Introduction to the course

 

Module I: Classics of ‘Economic Sociology’: Smith, Marx and Polanyi

 

Week 2

 

January 27             The foundations of the commercial economy

 

Read: *The Wealth of Nations, volume I, pp. 1-23 (NOT the editor’s introduction, but starting with Smith’s own “Introduction and Plan of the Work”), 291-293, 351-364

 

January 29             The dynamics of the market, and the introduction of ‘orders’ (i.e., classes)

 

                Read: *The Wealth of Nations, volume I, pp.26-35, 62-82, 88-97, 275-278

 

 

Week 3

 

February 3             International trade: An argument for today’s politicians

 

Read: *The Wealth of Nations, volume I, pp. 450-455, 472-480, 513-515, 519-524

 

February 5             The proper functions of the state

 

Read: *The Wealth of Nations, volume II, pp. 213-247, 301-318

 

 

Week 4

 

February 10           The other Adam Smith?

 

Read: *The Theory of Moral Sentiments, pp. 9-26 (NOT the introduction, but starting with Part I, section I), 43-45, 50-57, 61-64, 77-78 (par. 10 only), 109-117, 179-187 (including par. 1 of ch. 2)

 

February 12           Marx on exploitation: Power as the foundation of the capitalist economy

 

Read: *Karl Marx, The Marx-Engels Reader, pp. 203-219 [For a longer and more detailed version, you could read pp. 329-361, 376-388, 397-415, 419-431, but I don’t advise it for this class] 

Week 5                 

 

February 17           Alienation as the foundation of the capitalist economy

 

Read: *The Marx-Engels Reader, pp. 67, 70-81, 93-105, 319-328

 

February 19           NO CLASS TODAY

 

 

Week 6

 

February 24           Karl Polanyi on the time(s) before the market economy

 

Read: *Karl Polanyi, The Great Transformation, chapters 3-5, 7

 

Also helpful: **Karl Polanyi, “The Economy as Instituted Process,” in The Sociology of Economic Life, edited by Mark Granovetter and Richard Swedberg, pp. 29-51 (Westview Press, 1992)

 

February 26           The institutional preconditions of the free market

 

                Read: *The Great Transformation, chapters 11-14,17

 

FIRST PAPERS DUE!

 

Module II: New Economic Approaches and Concepts in Sociological Research

 

Week 7                 

 

March 3                 Transaction cost economics

 

Read: **Oliver E. Williamson, “The Economics of Organization: The Transaction Cost Approach,” American Journal of Sociology 87 (1981):548-577.  [Warning: Everyone’s least favorite reading!]

 

March 5                 Principal-agent problems, market failures, and game theory

 

Read: **George A. Akerlof, “The Market for ‘Lemons:’ Quality Uncertainty and the Market Mechanism,” from An Economic Theorist’s Book of Tales, pp. 7-22 (don’t worry about any of the math)

 

                Read: **Thomas Schelling, Micromotives and Macrobehavior, short online selections

 

Read: ** Robyn M. Dawes and Richard H. Thaler, “Anomalies: Cooperation,” The Journal of Economic Perspectives 2, no. 3: 187-197.

 

Module III:  Current Sociological Approaches to the Economy, or, the ‘New Economic Sociology’

 

Week 8                 

 

March 10               Embeddedness and social networks: The ‘grand theory’ part

 

Read: **Mark Granovetter, “Economic Action and Social Structure: the Problem of Embeddedness,” American Journal of Sociology 91 (1985):481-510.

 

Read: *Carruthers and Babb, Economy/Society: Markets, Meanings, and Social Structure, ch. 1

 

March 12               Empirical Analyses of Social Networks

 

Read: *Carruthers and Babb, Economy/Society, chapter 3

 

Read: **Brian Uzzi, “The Sources and Consequences of Embeddedness for the Economic Performance of Organizations: The Network Effect,” American Sociological Review 61,4 (1996):674-698.

 

 

NO CLASSES MARCH 17 AND 19; SPRING BREAK

 

Week 9                 

 

March 24               Funky stuff on particular networks and their effects, like contagion

 

Read: *Malcolm Gladwell, The Tipping Point, introduction and chs. 2 and 6, and pp. 276-280

 

March 26               The effects of status in the market

 

Read: **Joel M. Podolny, “A Status-Based Model of Market Competition,” American Journal of Sociology 98 (1993):829-872.

 

Perhaps also helpful: **Joel M. Podolny, “Networks as the Pipes and Prisms of the Market,” American Journal of Sociology 107,1 (July 2001):33-60.  [This is a tough read, but the first handful of pages of it describes how to bring together the Granovetter-style and Podolny-style visions of networks in the market as we have been examining them the last few weeks.]

 

Week 10       Business history: the emergence, transformation, and environment of the firm

 

March 31               Control of the internal labor force

 

Read: *Carruthers and Babb, Economy/Society, chapter 4

 

April 2                    Deindustrialization and its social effects

 

Film screening: Michael Moore, Roger and Me

 

Week 11              

 

April 7                    Size and environment of the American firm

 

Read: *Gladwell, The Tipping Point, chapter 5

 

                Also helpful: **Neil Fligstein, The Transformation of Corporate Control, ch. 1 [This is a complicated and rich book which I no longer assign, but I will put the first chapter on reserve or on my website in case you want to look at it, and then talk about the argument in class.]

 

 

Module IV: Social Influences on the Economic Beyond the ‘Economy’

 

Culture and economy

 

April 7                    Symbolism and meaning, especially in advertising

 

Read: *Carruthers and Babb, Economy/Society, chapter 2, and more discussion of Gladwell

 

April 9                    The cultural embeddedness of money

 

Read:  *Viviana Zelizer, The Social Meaning of Money, chapters 1, 3, 6, 7

 

 

Week 12               Gender, race, and economy

 

April 14                  Forms of inequality in the contemporary world and apparent trends

 

Read: *Carruthers and Babb, Economy/Society, chapter 5

 

April 16                  Poverty in contemporary America: Left out of the new economy, or left out of the New Economic Sociology?

 

Read: *Katherine S. Newman, No Shame in My Game: The Working Poor in the Inner City, chapters 1-3

 

 

Week 13                              

 

April 21

 

Read: *Katherine S. Newman, No Shame in My Game: The Working Poor in the Inner City, chapters 6-7

 

April 23                  Poverty and the Informal Economy

 

                Read: **Mitchell Duneier, Sidewalk, chapters 2-3

 

 

Week 14               Transitions to capitalism

 

April 28                  The first transition

 

Read: *Adam Smith, The Wealth of Nations, Book III

 

Read: **Paul D. McLean and John F. Padgett, “Obligation, Risk and Opportunity in the Renaissance Economy,” online manuscript

 

April 30                  Contemporary transitions

 

Read: *Carruthers and Babb, Economy/Society, chapter 6

 

Read: **David Stark, “Recombinant Property in East European Capitalism,” American Journal of Sociology 101 (1996):993-1027.

 

 

Week ‘15’

 

May 5                     Review and Q&A session