Sociological Interpretations of Economic Life
Mutual Penetration of Economic and Sociological Analysis
Economic Imperialism: Gary Becker (), in "The Economic Approach to Human Behavior," argues economic analysis (maximizing behavior and stable preferences) applies to all human behavior beyond traditional markets, including family, crime, and law.
Human Capital: Associated with individual knowledge, skills, education, and qualifications determining economic potential.
The New Institutional Economics (NIE): Analyzes institutions as sustainable legal/social structures. Ronald Coase introduced "transaction costs" (information, contract fulfillment). Oliver Williamson identified three governance structures: markets, hierarchies (firms), and bilateral exchange ("relational bargaining").
Theories of Public and Social Choice: James Buchanan and Gordon Tullock apply economic methodology to political actors. Kenneth Arrow introduced the "Impossibility Theorem" regarding social preferences. Mancur Olson noted the challenge of collective action in large groups, while Amartya Sen proposed the theory of "information expansion."
Sociological Rational Choice: James Coleman () sought to explain social systems as products of coordinated individual actions, introducing "social capital" and the social origin of rights.
Socioeconomics and Neo-Marxism: Amitai Etzioni proposed an interdisciplinary program. Arthur Stinchcombe () authored the first English book titled "Economic Sociology." John Goldthorpe and Fred Hirsch explored the political power dimensions of economic relations.
Feminist Critique: Rosabeth Moss Kanter, Louise Tilly, and Paula England critique conventional economics for ignoring the specific economic roles of women.
Methodological Approach of New Economic Sociology (NES)
Core Definition: Neil J. Smelser and Richard Swedberg define economic sociology as the sociological perspective applied to the production, distribution, exchange, and consumption of scarce goods.
Embeddedness: Mark Granovetter () posits that economic actions are structurally "embedded" in networks of social relations, rejecting the "atomization" of human behavior.
Social Orientation: Economic behavior is motivated by collectively shared values and expectations of reciprocity, often conflicting with pure individual gain.
Role of Power: Max Weber defined power as imposing one's will. Pierre Bourdieu linked power to economic, social, cultural, and symbolic capital. Markets are viewed as fields of struggle for power among elites.
Unintended Consequences: Final results of economic actions often diverge from intended goals due to social orientation and unforeseen circumstances.
Middle-Range Theories in the New Economic Sociology
Theories of Social Capital:
Pierre Bourdieu: Viewed social capital as an individual property accumulated through group belonging, convertible into economic or cultural capital.
James Coleman: Defined it as a collective good created via social relations, emphasizing trust, reciprocity, and shared norms.
Robert Putnam: Viewed it as a societal characteristic. Distinguished between "bonding" (homogeneous groups) and "bridging" (heterogeneous groups) capital. Woolcock introduced "linking" capital for vertical connections.
Social Network Theories: Mark Granovetter analyzed "strong ties" (family/close friends) and "weak ties" (acquaintances), arguing that weak ties provide more diverse and novel information for economic decisions.
Neo-Institutional Sociological Theories: Richard Scott distinguishes three aspects of institutions: regulative (rules), normative (shared values), and cultural-cognitive (meaning systems).
Research Fields of New Economic Sociology
Sociological Market Theories: Harrison White views markets as socially constructed networks. Neil Fligstein argues entrepreneurs prioritize stabilizing their companies and reducing uncertainty over maximizing profit.
Economic Inequality: Analyzed through social differentiation (heterogeneity) and social hierarchization (vertical ranking). Key figures include Karl Marx, Max Weber, and modern scholars like Joseph Stiglitz, Emmanuel Saez, Thomas Piketty, and Richard Wilkinson.
Economy and Culture: Paul DiMaggio and Viviana Zelizer argue economic behavior is embedded in culture; tastes and needs are endogenous, socially constructed determinants.
Informal and Illegal Economy: Distinguished by legality and institutional reporting:
Formal: Legal and accounted.
Informal: Legal but unaccounted (e.g., domestic labor, mutual assistance).
Unregistered ("gray"): Legitimate entities concealing income.
Illegal ("black"): Production of prohibited goods or activities by illegitimate entities.
Subject Area and Specificity of Economic Sociology
Re-evaluates the axiom of maximizing rational behavior in favor of a more realistic view of economic actors.
Focuses on the "embeddedness" of economy within social systems rather than treated as an autonomous reality.
Applies a socio-critical view to social conflicts, market rules, and the evolution of economic systems.