Category Archives: Sociology

Even in economic crisis people are still drawn to New York City

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Even in the midst of tough economic times, plenty of people are still drawn to New York City:

So what is it that lures us here and keeps us beholden? Recently, the opportunity arguments have been harder to sustain. In March of last year, the unemployment rate in the city stood at 8.6 percent; 12 months later it jumped to 9.8 percent. Nationally, the unemployment rate has declined during the past year, to 8.1 percent in April.

But the past few years, defined by economic challenges, have seemed only to burnish the city’s appeal. An analysis of American Community Survey data by Susan Weber-Stoger of the Queens College Department of Sociology reveals that more people moved to New York City (over 223,000 of them a year on average) after the financial crisis in 2008 and through 2010 than did from 2005 to 2007, an increase of 10 percent.

Simultaneously, the number of people who have left the city since the recession decreased by 25 percent. Of those who have come, most have been from 25 to 34 years old, more than two-thirds of them with college or graduate degrees. More than a third of those who’ve arrived have come from abroad.

When I discussed some of these numbers with Miriam Greenberg, a sociologist who has written extensively about the branding of New York, she cited the highly strategized efforts the current mayoral administration has made to sell the city to the world. This may explain, in some sense, why people have come, but it doesn’t tell us why they remain, with their Zipcar memberships and disillusions.

If I had to venture a guess why this is the case, I might make this argument: New York City (and other big cities) are viewed as places where opportunities are. Even if the unemployment rate is higher (and I doubt many people checked before going there), the assumption is that there are more jobs to be had and there is a broader range of jobs available (particularly compared to smaller cities or more rural areas). Therefore, the potential for a good job is higher. This is process that is not unique to the United States; the incredible rates of urbanization around the world are also partly due to perceptions that cities may be the only places where jobs are available.

We could also flip this question around: should cities try to attract more people if there are not enough jobs for everyone? Greenberg suggests that the city has effectively marketed itself but in the long run, is this a sustainable strategy if there are not jobs (and other needs such as housing) for everyone who comes?

Australian architect argues banks are pushing him to design McMansions

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One Australian architect argues that he doesn’t want to build McMansions but banks are pushing him to do so:

CANBERRA’S appetite for McMansions may have lessened but architects are complaining that it is now the banks – not the clients – who are pushing them for extra more bricks and mortar.

President of the ACT chapter of the Australian Institute of Architects Tony Trobe said he had been effectively forced to change designs to give clients extra bedrooms they did not want or need, just so they could get finance from their banks for the build.

”The banks are saying ‘no’ because they think it’s not as easy to sell a stylish two bedroom house as is to sell a three bedroom house with a garage,” he said…

Australian Bankers’ Association chief executive officer Steven Munchenberg said there was no hard and fast rule about needing at least three bedrooms.

”Nobody in the industry is saying ‘no more two bedrooms’ but the banks will take into account the re-salability of the home,” he said.

This sounds like an interesting conundrum: the architect wants a certain design but the bank wants to make sure the home can be sold down the road. Having three bedrooms makes the home more attractive to families and others who might extra space (a guest room, an office, etc.). Could the banks simply be hedging their bets here, meaning they want to ensure they aren’t stuck with an underwater mortgage or foreclosure down the road?

I do have one question: having three bedrooms in a home automatically makes it a McMansion? Having three bedrooms sounds pretty normal to me…

New Microsoft lab in New York City to study social media and social science

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Microsoft is opening up a new laboratory in New York City that will focus on the intersection of social media and social science:

Microsoft Research is opening a new lab in New York City, headed by ex-Yahoo senior scientists. The star crop of researchers includes sociologist and network theorist Duncan Watts, computational scientist David Pennock, and machine learning expert John Langford…

Microsoft’s research hubs are behind several of the company’s successful products. The Kinect and Bing were both developed for years as research projects before Microsoft turned them into products…

The NYC lab recruits bring in mathematical and computation tools that could work magic with existing social media research already underway at Microsoft Research, led by folks like Gen-fluxer danah boyd. “I would say that the highly simplified version of what happens is that data scientists do patterns and ethnographers tell stories,” boyd tells Fast Company. While Microsoft Research New England has strengths in qualitative social science, empirical economics, machine learning, and mathematics, “We’ve long noted the need for data science types who can bridge between us,” boyd explained in a blog post announcing the NYC labs.

Data available via social networks like Twitter and Facebook finally offer a discrete measure of how people interact with one another, and how influence flows through their web of social links. As Watts explains it: “We want to understand how these phenomena work, we have to take a very large scale view of the world but have to refine our viewing a very fine grained way.”

Microsoft has hired 15 founding members (8 of those names are public), but that number is likely to grow in the coming months “like a university department in good times,” Chayes said. (Microsoft Research’s other units vary in size from 40 to 400 members of staff). The lab will draw on collaborators at the University of Pennsylvania, Rutgers, Princeton, New York University, and Columbia who’ve expressed an interest in working with the NYC labs.

This sounds like a fascinating opportunity to bring together a number of notable researchers across disciplines to tackle new issues and data.

I wonder how many academics would bristle at this news simply because of the connection to Microsoft, the supposedly big bad company that has tried to force its way in the computing world and is seen less favorably than “cooler” firms like Yahoo, Google, and Apple. At the same time, it is only with the resources available at these sorts of companies that you could put together labs like this and grant employees (Google is particularly famous for this) time to do their own creative work. How much of the work in this lab will be expected to be funneled into Microsoft products versus the general world of academia? Well-known researchers like danah boyd and Duncan Watts have made it work in the past but how different is it to work for a corporation versus an academic institution? I assume there must be some nice perks, including salary…

Hochschild highlights new individualized service jobs like “wantologist”

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Sociologist Arlie Hochschild has written a new book, The Outsourced Self: Intimate Life in Market Times, that explores the rise of jobs to meet our individualized needs:

Don’t know what you want out of life? No problem. Hire a wantologist!

This new profession actually exists in 2012. Just fork over a little cash (a couple hundred an hour or so) and this individual will help you figure out your most important goals in life – and help you get closer to achieving them.

Sound like a bunch of hooey? Consider Esther James, a wantologist in San Jose, California. She has a PhD in psychology from NYU, practiced for twenty years as a Jungian psychologist, trained as an executive coach – earning $250 an hour – and has now transitioned into full-time life coaching in the wake of the economic downturn, as she explained to sociologist Arlie Russell Hochschild.

Hochschild, based at the University of California, Berkeley, profiles James and many other personal service providers in an enlightening new book, The Outsourced Self, which describes how the market has risen to meet the needs of increasingly harried and needy Americans…

Hochschild puts these out-of-the-blue service professions in the broader context of a society right now that “undermines community, disparages government, marginalizes nonprofits, and believes in the superiority of what’s for sale.” As she told The Fiscal Times in an interview, “The wantologist’s profession is fledgling at the moment, but it’s very real – it’s its own speciality. I’ve seen the ‘wantology workbooks.’ I’ve talked to the clients. Services like this are only going to proliferate. A lot of things that seemed weird yesterday aren’t weird today.”

The themes of this book sound similar to Hochschild’s previous books, The Managed Heart and The Second Shift, that also address the intersection of individuals and a changing social context. In this new book, it sounds like Hochschild is arguing that we lose something as a society when important individual tasks are outsourced to free up the time for us to do “better” things.

The interview with Hochschild is worth reading in full but there would seem to be another aspect to this shift that is not addressed. Wouldn’t these sorts of services primarily cater to those with the economic resources to pay for it? Hochschild mentions how dating websites could also fall into this category (and these are relatively accessible) but in order to hire a life coach or personal organizer or “wantologist,” you would have to have some extra money. Or, perhaps these services could be quickly becoming “necessary,” meaning that people have to cut back elsewhere in order to achieve certain priorities. For example, this might include a family that feels it is a necessity to hire a college application consultant for their high school student since college is such an important decision and predictor of chances later in life. If these services are becoming more normal, than it could be another marker between social classes: can you afford to outsource some of the mundane or necessary tasks of lives off to others? And who is expected to work in these service jobs? Perhaps this is simply a more palatable, market-based solution to the issue of the wealthy hiring servants in the past.

This also reminds me of two other things:

1. Could this be viewed as an example of extended cognition, the idea that we as humans are effective at utilizing other resources to tackle certain issues for us (even as basic as writing ideas down on paper so we don’t have to devote extra brain space to remembering these things) and freeing ourselves for other things?

2. A.J. Jacobs wrote about an experiment in personal outsourcing (with more detail in his book The Guinea Pig Diaries: My life as an Experiment).

What’s in a name? Certain subdivision names lead to higher housing values

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A study suggests homebuyers are willing to pay extra in subdivisions with certain words in their name:

According to a study by two researchers at the University of Georgia, homebuyers pay an average of 4.2 percent more when the development has the word “country” in the name. And if it has the term “country club” as part of its name, buyers will pay 5.2 percent on top of that.

That’s a total of almost 10 percent more that people are willing to pay for the prestige associated with the term “country club.”

A joke? Hardly. The study, the results of which were published last year in the Journal of Real Estate Research, is a serious investigation of sales in the Baton Rouge, La., area over 15 years. It carefully controlled for such variables as location, number of bedrooms and bathrooms, and days on the market, among others.

“This is the first study to find through empirical research that buyers are willing to pay more for certain property names, with all other attributes of a house being equal,” the paper said. “In fact, buyers of more expensive houses may be willing to pay more for a name that conveys prestige than they are willing to pay for a good school for their children.”

No wonder, then, that the naming process is often a psychodrama, with builders and their marketing teams becoming more hung up over what they will call their communities than they are over the copy for a $10,000, full-page ad in the local newspaper.

There is no tried-and-true naming method. Some builders resort to the old standards — station, park, commons, woods, village, farms, hunt, square and gardens. Some look to history for a name, while others use location or a characteristic of the property. A few pick a name that immortalizes themselves or their loved ones.

It sounds to me like this is all about status. Living in a subdivision with a certain word in its title conveys status and wealth, important considerations for homeowners, particularly when selling a home.

Several thoughts come to mind:

1. I assume that this effect only works at certain income levels. For example, could you build a run-of-the-mill townhouse development, slap the “country club” label on it, and expect a price premium? I would guess not. To some degree, I would guess there is a relationship between the price of the properties (which then limits who can live there in the first place) and the names. Additionally, builders don’t want to dilute their products by suggesting that “normal” homes are upscale in name alone. (It is unclear to me whether the researchers were able to control for all the factors that would separate an upscale suburban subdivision from a typical subdivision.)

2. Beyond “country” or “country club,” do other words or names not matter? If not, then you simply get a muddled mess of subdivision names that don’t really signal much of anything except general references to tranquility, pastoralism, and perhaps some local landmarks or figures.

2a. Are there names that have a negative effect on price?

3. I wonder how much the generally bland subdivision names feed into the critique that suburbia is a homogeneous place. With many subdivision names not anchored to any particular place, you could be in a “Thousand Oaks” in Ohio just as well as Texas. Is this simply another piece that suggests that Americans aren’t anchored to any particular places?

When looking at the minimum wage, should we consider whether a poorly paying job is better than no job?

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I ran into an argument about whether the minimum wage should be raised in the United States and it got me thinking about the reasons behind the argument for raising it. To start, here is some of the debate:

One of the harshest realities of America’s slow economic recovery — and there are many — is the fact in spite of modest job growth, pay for workers is falling. Year over year, average inflation adjusted wages have dropped by 0.6 percent for all private sector employees. They’re down a full 1 percent for non-supervisors — your retail salespeople, your shop floor factory workers, your cashiers. In other words, even as the overall employment picture has improved in fits and starts, the working poor are getting poorer.

Some believe this is a sign of the recovery’s weakness, and today the National Employment Law Project used it as a rallying point to call for a higher minimum wage. According to their analysis, which is current through the beginning of 2011, while the bulk of job losses during the recession affected medium wage earners, such as paralegals and nurses, most of the hiring post-recession has been for low-paid service work. Middle class jobs, they argue, have been replaced with poverty wage jobs…

But here’s the alarming part. All of this might simply mean that the same forces that caused wages to stagnate before the recession will make them stagnate after the recession. It’s just another sign that income inequality is here to stay, unless something radical changes that will give working class families a larger slice of the pie. Will raising the minimum wage do that? It might help on the margins, certainly for the 3.8 million workers who earn it.  (I’m not one of those who believes that a higher minimum wage actually kills jobs. This great, short Slate piece from 2004 explains why.) But the vast majority of American workers won’t see much benefit from it. Rather, fixing the wage problem means we need to think about the fundamental problems skewing income growth towards the top, from spiraling CEO pay to an inadequate education system.

Falling wages are taking us back to where we were before the recession. For many workers, that’s not a good place. And there aren’t any easy ways out of it.

Of course, arguments for raising the minimum wage often focus on the idea that it is not enough money to live on. Hence, calls for a living wage that is more closely tied to a more steady standard of living.

But I wonder if there isn’t a bigger issue at work here: the idea that low-paying jobs may not be worth having. In other words, people might be better off without a minimum wage job. The low-paying job may be helpful in securing a new job (you don’t want an unemployment gap in your resume) or moving up but too many of these low-paying jobs pay so little that employees may not be able to do the things they need to do to move up (move to a new area where jobs are more plentiful, own a reliable car to expand job prospects, enroll in classes, etc.). Additionally, a number of these jobs don’t really offer chances for advancement; if they do, it is limited to a small group of workers. So these workers can get trapped in a cycle of low-paying positions that meet some basic needs to survive but never provide the hope to do something better. This is reflected in books like Nickel and Dimed: it is hard enough to do the daily grind, let alone find some light at the end of the tunnel in terms of a better-paying job.

In this sense, making a small adjustment to the minimum wage wouldn’t seem to do much. It might offer a little more money but this is likely eroded quickly by inflation (past and future). What we then need is more jobs that provide a higher standard of living and give more employees the opportunity to move on and up to something better.

(I realize there is a lot more going on here. But I wanted to get at the idea that simply having a job isn’t a guarantee of having the chance to reach the American Dream. Being willing to work doesn’t necessarily guarantee a good outcome. This also reminds me of Katherine Newman’s book No Shame In My Game about the working poor who want to work but can’t access the jobs that would lead to success.)

NATO blunder or deep-seated Chicago wish to be recognized as the capital of Illinois

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I know a lot of people were having fun at NATO’s expense yesterday after it made several errors in a video ahead of the upcoming summit in Chicago. One of them was particularly interesting:

A video about Chicago posted Thursday on the website of NATO’s in-house television news network, Natochannel.tv, could leave leaders fumbling the facts at the international water cooler.

First, there’s the matter of Illinois’ capital city.

“More than 60 heads of state and government will meet to discuss crucial matters of security and stability in the Euro-Atlantic area,” a narrator’s voice says as the five-minute video plays panning shots of Chicago. “And so, the leaders of the member nations of the organization created by the 1949 Washington Treaty will meet in the capital of Illinois this time.”

What in the name of Abraham Lincoln? The summit was moved to Springfield?

While the capital of Illinois is indeed Springfield, I wonder if this doesn’t hint at a secret wish of Chicagoans for the city, whose region has roughly 70% of the state’s population, to be the actual capital. As the most populous city as well as the economic powerhouse for the state, why not simply move the government operations there as well? Doesn’t Chicago effectively function as the capital anyway? Now I know official state business takes place in Springfield but think about the power and influence politicians from the Chicago area wield. Think of the economic impact Chicagoland has on the state. Think of the images many Chicago area residents have of those who live “downstate.”

An argument could also be made about the need to move capitals to reflect changing realities. Springfield wasn’t the first capital in Illinois and the earlier capitals were all further south, reflecting where the population of the state was at the time. Indeed, Chicago was a small community into the late 1830s and northeastern Illinois was relatively unsettled compared to the rich farmland further south. Geographically, Springfield made sense. I think you may be able to apply some of this geographic logic to a few other state capitals as well such as Albany compared to New York City and Sacramento compared to Los Angeles or San Francisco. Going even further, Washington D.C. emerged as a new city because of a compromise between different factions (Alexander Hamilton’s wished for the nation’s capital to be a big city, New York City specifically). Imagine what a powerhouse New York City could be in global city rankings if it also had Washington D.C.’s share of governmental influence? (Ironically, the United Nations, the foremost global governance organization, is based in New York City even as the capital of the United States is not.)

Granted, you would expect an organization like NATO to get the capital of Illinois correct. But perhaps their error simply reflects what Chicago leaders think…

Fuel efficiency goes up, gas tax revenues go down $50 billion (or so)

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A new report from the Congressional Budget Office suggests that increasing standards for fuel efficiency will leave a large deficit in highway funding:

This week, the CBO issued a new report that looked at how the upcoming, higher CAFE fuel economy rules will affect the Highway Trust Fund. The short answer? Between 2012 and 2022, the Fund will see revenues that are $57 billion lower than they would be without the new CAFE rules. The slightly longer answer:

The proposed CAFE standards eventually would cause a significant reduction in in fuel consumption by light-duty vehicles. That decrease in fuel consumption would result in a proportionate drop in gasoline tax receipts: CBO estimates that the proposed CAFE standards would gradually lower gasoline tax revenues, eventually causing them to fall by 21 percent. That full effect would not be realized until 2040 because the standards would gradually increase in stringency (only reaching their maximum level in 2025) and because the vehicle fleet changes slowly as older vehicles are replaced with new ones.

To illustrate the effect that the standards would eventually have on the trust fund’s cash flows (in 2040 and beyond), CBO examined how a 21 percent reduction in gasoline tax collections would alter the agency’s current budget projections for the trust fund, which span the period from 2012 through 2022. CBO estimates that such a decrease would result in a $57 billion drop in revenues credited to the fund over those 11 years, a 13 percent reduction in the total receipts credited to the fund.

The CBO suggests three ways to deal with the shortfalls: do nothing (i.e., keep on transferring money from the general fund), spend less on highways and mass transit or raise the gas tax (or other taxes and direct them to the Fund). An increase to the gas tax wouldn’t have to be huge. Just five cents a gallon would be enough to offset the $57 billion, the CBO says. But until Congress can agree on this simple change, there’s always the voluntary gas tax.

This isn’t idle speculation. Joel noted some commentary about this in early February 2012.

This reminds me of a recent post about the possible unsustainability of suburbia. Under the current system, we either need more drivers overall (which could then be based on population growth plus more car ownership) or people to use more gasoline (which goes against a push to be more green). Are either of these options really optimal or even desirable? Of course, the gas tax could be increased by a small amount (perhaps just a few pennies?) and the deficit would disappear. However, would this simply lead to more gas tax hikes down the road compared to the option of resetting the system so that highways are funded through a more consistent mechanism? Which politicians want to tackle this? Perhaps we are closer to a tax per mile driven than we might know?

h/t Instapundit

French suburbs known as “zones of banishment”

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The French suburbs are getting more media attention in the lead-up to the run-off election. This article talks about the current status of the “urban sensitive zones”:

Inside the French suburbs, referred to here as “zones of banishment” or “the lost territories of France,” the 2012 presidential elections seemed like a good time to wake up the nation.

In a small office in the suburb of Clichy-sous-Bois, a group of mostly Arab and African 20-somethings hit on an idea: Create a “crisis ministry of the suburbs.” It would address France’s ignorance about the 731 areas ringing the country’s biggest cities, known officially as “urban sensitive zones,” where most of France’s non-European minorities live. Geographically, they are suburbs, but socioeconomically, they resemble the US inner city.

Paris Mayor Bertrand Delanoe gave the upstart “ministry” a temporary office next to City Hall. For two days, rappers, artists, and activists merrily held court with a French media that rarely makes it to the suburbs and worked on a 120-point reform plan. Several presidential candidates, including front-runner François Hollande, showed up.

But the good vibe didn’t last. Days later, Mohammed Merah, a self-styled Islamist radical born to Algerian parents in a Toulouse suburb, shot and killed two soldiers, three children, and a rabbi. The killings seemed to reinforce all the stereotypes and fears about the troubled suburbs.

A fascinating overview.

A few quick thoughts:

1. I think many Americans would have difficulty processing this given our images of the suburbs.

2. Issues of race/ethnicity and class take place all over the world. The article suggests French students hear that their country is “an egalitarian utopia without issues of race and religion” but the situation on the ground suggests otherwise.

3. It would be interesting to read a more complete story of government involvement in the suburbs. How did this happen (politically and funding-wise) and is this what the government prefers?

McMansions are symbols of “the excess of greed”

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An interesting way the term McMansion is sometimes used is to see such houses as symbols for some larger issue in our culture. This usage is illustrated in a documentary to be shown next week in Vancouver:

Vancouver’s treasury of modern architecture is the subject of Coast Modern, by Michael Bernard and Gavin Froome (May 8, 7 p.m., Vancity Theatre).

“Coast Modern is an exceptionally beautiful film,” says Woodend. “I have a bit of a yen for modernist architecture, just because it’s so exquisite, and it’s one of those films [that takes] house porn on a whole new level.

“Although, to give it credit, it looks at architecture as a manifestation of social values. [It has] Douglas Coupland weighing in on McMansions, and how they’re sort of this travesty, not just in architectural terms, but as an embodiment of cultural and social values, the excess of greed that has come out of the last 10 years and shown up in brick and mortar.

“In that regard it’s pretty thoughtful, it really uses architecture as a means to talk about culture.”

From this point of view, houses are not just things to be purchased by individual buyers. Rather, homes and their architecture represent broader trends in society. McMansions can then be viewed as symbols of excess, products of an era where people consumed more than they needed with impunity. Presumably smaller homes indicate (whether they are tiny or “not-so-big“) fighting back against this culture of excess.

Of course, labeling a home as a McMansion then does the job of pointing out the excess. If you live in such a home that acquires this label, do you try to respond that the home really isn’t that excessive? Or perhaps that it is green enough (perhaps a tactic of celebrities)?