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Purpose – To use insights from economic sociology to analyze how U.S. employment law understands and regulates the relationship between prison labor and conventional employment.

Methodology – Legal analysis of all published court opinions deciding whether federal employment laws such as the minimum wage apply to prison labor.

Findings – Courts decide whether prison labor is an “employment relationship” by deciding whether it is an “economic” relationship. Most interpret prison labor as noneconomic because they locate it in a nonmarket sphere of penal relationships. A minority of courts use a different conception of the economy, one which interprets prison labor as a form of nonmarket work.

Implications – The economic character of prison labor may be articulated using the same theoretical perspectives and analytical techniques developed to analyze family labor as economically significant nonmarket work. Doing so, however, too readily accepts the market/nonmarket distinction. Given the thoroughly social character of market work, prison labor's highly structured, institutionally specific character does not preclude characterizing it as market work, and some of its features support interpreting it as such.

In this legal context, identifying practices as economic or not, and as market or not, has concrete consequences for the actors themselves. Rather than using market/nonmarket distinctions as analytical tools, scholars might treat actors' designation of an economic practice as part of a market or not as a site of conflict, subject to institutionalization, and worthy of sociological study.

Does the rise of foreign direct investment (FDI) in Central and Eastern Europe lead to supraterritoriality? The analysis of FDI flows between world investor countries and Central and East European (CEE) hosts between 1989 and 2000 shows that the majority of FDI flows into CEE in this period do not exemplify a trend of undifferentiated transcendence of post-communist borders. Rather, FDI flows continue to be based in territoriality and embedded in existing social relations between investor and host countries: migration and trade flows, historical ties, political alliances, and cultural affinities. Nevertheless, the rhetoric supporting the opening of post-communist countries to FDI is widespread and consistent with the neoliberal credo, which has acquired a supraterritorial character. Ultimately, we see that embeddedness and supraterritoriality co-exist but they manifest themselves for distinct FDI phenomena: the concrete economic practice and the economic rhetoric, respectively.

In response to Bandelj, Hung, and Streeck, I make three basic points. First, while the initial article focused on definitions of capitalism as a system, the critics prefer to see capitalism as a spirit or a tendency that emphasizes the unlimited pursuit of profit. While we are in agreement that such a tendency is destructive, it is confusing to define capitalism this way when most others are using the term to describe a system that they see as coherent. Second, some of the critics question whether efforts to reign in the capitalist impulse can be successful for very long. I argue that the breakdown of restraints in the post-World War II period can be traced to the end of the Bretton Woods regime of fixed exchange rates in 1973. This policy shift was neither inevitable nor the result of political agency by financial or corporate interests. Third, the concept of capitalism fails to illuminate key fault lines in contemporary political economies such as the divide between finance and production or between giant firms and small- and medium-sized enterprises.

Purpose – The mingling of economic transactions with sexual intimacy, friendship, and kinship sometimes causes trouble in workplaces, but prevailing analyses misrepresent how and why that trouble occurs. Analyses of the impact of intimate relations on organizational effectiveness range from claims of disruption to claims of sociable satisfaction. Such relations often coexist with organizational effectiveness, and sometimes contribute to it.

Methodology – A review and synthesis of available literature identifies theoretical and empirical obstacles to recognition of how intimacy operates within organizations.

Findings – This analysis draws attention to relations between intimate pairs and third parties as crucial to intimacy's impact.

Purpose – This paper considers the role of relationality as an interpretive strategy in the workplace, asking how one group of low-wage workers interpret their jobs in the service economy.

Methodology – Qualitative interviews with 25 female retail workers.

Findings – I argue that these retail workers use a relational ethic to interpret various aspects of their work. Relationality colors workers’ understanding of their job responsibilities, their own accounts of self-development in the workplace, and their strategies for resolving conflict on the shop floor.

Practical implications – These findings are particularly relevant for current labor union activities, and thus I conclude by discussing the implications of this relational ethic for attempts to organize workers in the retail sector. Workers who prioritize relationships ahead of material gains in the workplace may be particularly uncomfortable with more confrontational styles of labor organization.

Originality/Value of paper – Economic sociologists increasingly stress relational aspects of the economy, such as the role of networks in enabling market transactions; the significance of social ties in shaping economic exchange, and the importance of economic activity in constituting relationships themselves. This paper builds on that framework by arguing that workers also use a relational ethic to interpret their activity within the workforce itself.

Purpose – This chapter presents a close examination of how manufacturing managers respond to environmental pressures by formulating and implementing operational strategy.

Methodology – The analysis is based on interviews and observations in 31 manufacturing firms in the US Midwest.

Findings – The study reveals that competitive market pressure is only so effective at penetrating the institutional layers of inter- and intra-firm relations. Even in the highly competitive manufacturing sector, operational strategy is consistently implemented in suboptimal ways. Relatively inefficient routines are commonly institutionalized and inefficient arrangements appear to be able to persist for an indefinite period of time. To the extent that firms with variable capabilities and internal socio-technical systems must process, interpret, and react to complex external pressures and often-ambiguous signals, the sociology of work provides essential insights for the sociology of markets.

Originality – While the findings are subject to the standard caveats regarding nonrandom qualitative samples, the rich data produced and the in-depth analysis of real-world organizational pressures and managerial decision-making provide distinctive insights into how managers must balance external market pressures with internal labor process problems. Individual motivation appears to be at least as important in true organizational innovation as market discipline. While adaptation and learning certainly occur in organizations (and selection also operates through the death of extreme laggards) there exists sufficient institutional space within markets for a range of variation in organizational performance. The findings suggest that the analysis of internal organizational dynamics provides an essential part of a realistic theory of markets.

Purpose – Since the 1960s, the affluent democracies have experienced substantial changes in earnings inequality at the same time as heightening economic globalization. This paper investigates the relationship between these two processes.

Methodology/Approach – I use fixed-effects models, and comprehensive measures of globalization and earnings inequality to scrutinize the relationship between the two in 18 affluent democracies. Although past studies concentrate on worker displacement, I examine how globalization affected earnings inequality before and after controlling for manufacturing employment and unemployment as indicators of displacement.

Findings – Initial evidence suggests net migration and investment openness have moderate positive effects, but trade openness has larger, more significant positive effects. In full models, only trade openness remains robustly significant. For a standard deviation increase in trade openness, earnings inequality should increase by between 1/5th and 2/5th of a standard deviation.

Originality/Value of paper – Beyond displacement, this study encourages investigation of power relations (e.g., class capacities of employers vs. workers) and institutional change (e.g., practices of firms) as mechanisms by which globalization contributes to inequality.

Purpose – University–industry relationships raise concerns about the influence of commercial interests on academic science. In this paper, we investigate how academic scientists who collaborate with industry understand their professional identity in relation to their research money and the notion of scientific “independence.”

Design/Methodology/Approach – We conducted in-depth interviews with 84 scientists and 65 administrators from 9 U.S. universities. The scientists do research in the field of agricultural biotechnology and collaborate with industry. The administrators have oversight responsibility for academic research, university–industry collaborations, and technology transfer.

Findings – We find that our respondents are wary of industry funding but believe that it has an appropriate place in academic research. Typically, industry money is treated either as seed money for preliminary research or as flexible funding that supplements the core, essential competitive grants academic scientists obtain from public agencies. We find that academic scientists talk about the mix of public and private funds in their research funding portfolios in ways that aim to construct an “independent” investigator professional identity.

Originality/Value – Our study is a case of how money is inscribed with meanings in institutional settings. It contributes to scholarship in economic sociology of work by revealing how money is used by academic scientists to signal their alignment with institutionally sanctioned professional norms and by administrators to evaluate scientists' work.

Purpose – This chapter illustrates how an economic sociology of work exposes the deeply embedded nature of the informal economy and the social and political lives of its growing mass of unprotected workers under globalization. In particular, the premises of economic sociology offer a comprehensive definition of the informal economy that I term, “relational.” In contrast to definitions based on modernization and neoliberal assumptions of isolated economies, relational definitions of the informal economy expose the structures, networks, and political institutions that intertwine informal workers with the formal economy, society, and the state. Operationalizing the relational definition in labor surveys ensures the inclusion of previously invisible informal workers, especially those who operate at the intersection of the informal and formal economy. As well, it ensures the collection of data on the precise ways in which informal workers are socially and politically embedded, including their collective action efforts, the meaning they attach to their labor, and the social networks that determine their life chances.

Methodology – To illustrate this point, I apply a relational definition of informal labor to the case of India, using the National Sample Survey on Employment and Unemployment, as well as findings from interviews with organized informal workers.

Findings – By doing so, I provide an internationally comparative measure of India's informal workforce, illustrate informal workers’ social conditions relative to those of formal workers, highlight the expansion of the informal workforce since the government enacted liberalization reforms, and expose the unique political action strategies Indian informal workers are launching against the state.

Implications/Originality – These findings help us understand Indian informal workers in an internationally comparative context, yielding empirical insights on their social conditions and political organizations for the first time. As well, they call for an important refinement to existing definitions of the informal economy that to date have relied only on Latin American and African experiences.

Purpose – Drawing from social psychology and economics, I propose several mechanisms that may affect ownership stakes among entrepreneurs, including norms of distributive justice, negotiation constraints, and network constraints. The processes are explored empirically for a representative dataset of entrepreneurial teams.

Methodology/Approach – Between 1998 and 2000, entrepreneurial teams were sampled from the U.S. population for the Panel Study of Entrepreneurial Dynamics. I analyze the distribution of ownership stakes at both the individual and group levels.

Findings – The results suggest that principles of macrojustice, affecting the distribution of resources in teams as a whole, deviate considerably from principles of microjustice, affecting the resources received by individual entrepreneurs. While aggregate inequality increases in teams that have a diverse set of members, the effect is not reducible to discrimination on the basis of individual status characteristics. Instead, the relational demography of teams – characterized in terms of the degree of closeness in network ties and homogeneity in demographic attributes – serves as a uniquely social predictor of between-group variation in economic inequality.

Originality/Value of the paper – Empirical research on inequality has paid little attention to the process of group exchange in organizational start-ups, where entrepreneurs pool resources and skills in return for uncertain or indirect payoffs. This paper offers both theoretical frameworks and empirical analyses to shed light on economic inequality among entrepreneurs.