Immigration, Opportunity and Assimilation in a Technology Economy (Victor Nee and Lucas Drouhot), CSES Working Paper Series, Center for the Study of Economy & Society Cornell University, 2020

Abstract
We examine access to institutions and opportunity for entrepreneurs in a rising tech economy. A significant proportion of entrepreneurs and CEOs of tech firms in the American economy are either first- or second-generation immigrant minorities. Are these minority entrepreneurs assimilating into a rising economic elite? To what extent is the technology economy segmented by ethnic boundaries and sectors? On a range of empirical measures, including access to financial and social capital, firm performance, and normative beliefs on fairness and cooperation, we find second-generation immigrant minority tech entrepreneurs to be strikingly similar to their white counterparts. This study sheds new light on the institutional environment of a new regional technology economy, whereby barriers of entry are high in terms of human capital but economic competition is structurally and culturally open to immigrant minority entrepreneurs.

Learning to Trust: From Relational Exchange to Generalized Trust in China (Victor Nee, Håkan J. Holm, Sonja Opper) Informs 2019

Abstract
Where does generalized trust—that is, the inclination to place trust in strangers—come from? Our claim is that in economic action, sources of generalized trust may not differ much from the sources of personalized trust. Contrary to a common assumption of a sharp distinction between personalized and generalized trust, we assert a likely spillover effect from relational exchange to a person’s expectations in interacting with an anonymous other. Our research integrates behavioral measures elicited by a novel incentivized trust game with survey data using a random sample of 540 entrepreneurs of private industrial firms in the Yangzi delta region of China. We show that entrepreneurs with more experience in relational exchange display greater trust in strangers. Likewise, we find robust evidence of a positive association between beliefs in the effectiveness of community business norms and generalized trust.

Strategic Decisions: prosocial behavior and cooperation (Holm, Nee and Opper) 2019.

 

Abstract
We study whether CEOs of private frms difer from other people with regard to their strategic decisions and beliefs about others’ strategy choices. Such diferences are interesting since CEOs make decisions that are economically more relevant, because they afect not only their own utility or the well-being of household members, but the utility of many stakeholders inside and outside of the organization. They also play a central role in shaping values and norms in society. We expect diferences between both groups, because CEOs are more experienced with strategic decision making than comparable people in other professional roles. Yet, due to the difculties in recruiting this high-profle group for academic research, few studies have explored how CEOs make incentivized decisions in strategic games under strict controls and how their choices in such games difer from those made by others. Our study combines a stratifed random sample of 200 CEOs of medium-sized frms with a carefully selected control group of 200 comparable people. All subjects participated in three incentivized games—Prisoner’s Dilemma, Chicken, Battle-ofthe-Sexes. Beliefs were elicited for each game. We report substantial and robust differences in both behavior and beliefs between the CEOs and the control group. The most striking results are that CEOs do not best respond to beliefs; they cooperate more, play less hawkish and thereby earn much more than the control group.

Strategic decisions: behavioral differences between CEOs and others. (Håkan J. Holm1, Victor Nee, Sonja Opper) Springer 2019

Abstract
We study whether CEOs of private frms difer from other people with regard to their strategic decisions and beliefs about others’ strategy choices. Such diferences are interesting since CEOs make decisions that are economically more relevant, because they afect not only their own utility or the well-being of household members, but the utility of many stakeholders inside and outside of the organization. They also play a central role in shaping values and norms in society. We expect diferences between both groups, because CEOs are more experienced with strategic decision making than comparable people in other professional roles. Yet, due to the difculties in recruiting this high-profle group for academic research, few studies have explored how CEOs make incentivized decisions in strategic games under strict controls and how their choices in such games difer from those made by others. Our study combines a stratifed random sample of 200 CEOs of medium-sized frms with a carefully selected control group of 200 comparable people. All subjects participated in three incentivized games—Prisoner’s Dilemma, Chicken, Battle-ofthe-Sexes. Beliefs were elicited for each game. We report substantial and robust differences in both behavior and beliefs between the CEOs and the control group. The most striking results are that CEOs do not best respond to beliefs; they cooperate more, play less hawkish and thereby earn much more than the control group.

Assimilation and the Second Generation in Europe and America: Blending and Segregating Social Dynamics Between Immigrants and Natives. (Lucas G. Drouhot and Victor Nee) Annual Review of Sociology 2019

Abstract
The diversity induced by migration flows to Western societies has continued to generate scholarly attention, and a sizable new body of work on immigrant incorporation has been produced in the past ten years. We review recent work in the United States, the United Kingdom, France, Germany, Sweden, Norway, Belgium, the Netherlands and Spain. Despite differences between the United States as a settler society and Western Europe as a composite of classic nation states, we find an overall pattern of intergenerational assimilation in terms of socioeconomic attainment, social relations, and cultural beliefs. We then qualify this perspective by considering sources of disadvantage for immigrants on both sides of the Atlantic. In the United States, the lack of legal status is particularly problematic; in Europe, by contrast, religious difference is the most prominent social factor complicating assimilation. We proffer several general propositions summarizing mechanisms embedded in purposive action, social networks, cultural difference,

Middle-Range Theories of Institutional Change. (Victor Nee) Sociological Forum 2018

Learning to Trust: from Relational Exchange to Generalized Trust (Victor Nee, Hakan Holm and Sonja Opper) Organization Science 2018

Abstract
Where does generalized trust, that is, the inclination to place trust in strangers, come from? Our claim is that in economic action sources of generalized trust may not differ much from the sources of personalized trust. Contrary to a common assumption of a sharp distinction between personalized and generalized trust, we assert a likely spillover effect from relational exchange to a person’s expectations in interacting with an anonymous other. Our research integrates behavioral measures elicited by a novel incentivized trust game with survey data using a random sample of 540 entrepreneurs of private industrial firms in the Yangzi delta region of China. We show that entrepreneurs with more experience in relational exchange display greater trust in strangers. Likewise, we find robust evidence of a positive association between beliefs in the effectiveness of community business norms and generalized trust.

Explaining Social and Institutional Change (Victor Nee) Sociological Forum 2018

Market Transition as Theory of the Middle Range. (Edited by Tamas Demeter. Brill. Richard Alba and Victor Nee). Forthcoming.

The Entrepreneur’s Network and Firm Performance (Victor Nee, Lisha Liu and Daniel DellaPosta) Sociological Science 4: 552-579 2017

Abstract
Diverse organizational forms coexist in China’s market economy, adapting and evolving in intensely competitive production markets. We examine the networks of founding chief executive officers of private manufacturing firms in seven cities of the Yangzi River Delta region in China. Through sequence analysis of ties that entrepreneurs relied on for help in the founding and critical events of their businesses, we identify three discrete forms of network governance: traditional kin-based, hybrid nonkin, and rational capitalist. We find that in traditional kin-based network governance, structural holes are linked to higher returns on assets and returns on equity. By contrast, in the rational capitalist form, structural holes and higher firm performance are not linked. We thus show that the content of the tie matters critically in the relationship between structural holes and firm performance.

Endogenous Dynamics of Institutional Change (Daniel DellaPosta, Victor Nee and Sonja Opper). Lead article in Rationality and Society and focus of comments by Robert Solow, Paul DiMaggio, Michael Macy, Randall Calvert, Martin Ruef, Arnout van de Rijt, and Christopher Cameron. 2017

Abstract
A parsimonious set of mechanisms explains how and under which conditions behavioral deviations build into cascades that reshape institutional frameworks from the bottom up, even if institutional innovations initially conflict with the legally codified rules of the game. Specifically, we argue that this type of endogenous institutional change emerges from an interplay between three factors: the utility gain agents associate with decoupling from institutional equilibria, positive externalities derived from similar decoupling among one’s neighbors, and accommodation by state actors. Where endogenous institutional change driven by societal action is sufficiently robust, it can induce political actors to accommodate and eventually to legitimize institutional innovations from below. We provide empirical illustrations of our theory in two disparate institutional contexts—the rise of private manufacturing in the Yangzi delta region of China since 1978, focusing on two municipalities in that region, and the diffusion of gay bars in San Francisco in the 1960s and 1970s. We validate our theory with an agent-based simulation.

Risk Aversion and Guanxi Activities: A Behavioral Analysis of CEOs in China (Sonja Opper, Victor Nee and Hakan Holm). Academy of Management Journal. 2017

Abstract
In China, the strategic use of personal relationships is pervasive in transactions with government authorities as well as in interfirm relations. Explanations as to when and why firms rely on guanxi emphasize a close link between organizational resources, environment, and corporate strategic choices. Our study shifts attention to the importance of CEO preferences, specifically risk aversion, and suggests an investment theory of strategic reliance on personal relations to achieve organizational goals. To explore the association between CEO risk aversion and reliance on guanxi activities, we combine incentivized behavioral tasks using multiple price list formats for risk elicitation with a manager and firm survey. Our analysis focuses on 345 randomly sampled CEOs of private manufacturing companies in the Yangzi Delta region in China. The results confirm the importance of risk preferences in explaining strategic choices and performance effects: there is a negative association between risk aversion and reliance on guanxi activities, although company age and market orientation moderate the behavioral effect of risk preferences. However, when risk-averse CEOs utilize guanxi, they tend to be more successful, as measured by the firm’s financial performance. More generally, our results underscore the importance of personal preferences as determinants of corporate strategy and performance.

Network Effects, Cooperation and Entrepreneurial Innovation in China. (Sonja Opper and Victor Nee). Asian Business & Management 14(4): 293-302. 2015

Abstract
The rapid rise of an innovative private manufacturing economy in China challenges standard economic explanations of growth, which typically assume the existence of well-defined formal institutions such as property rights and company laws safeguarding investor and creditor interests. We highlight the social structure of cooperation that enables innovative activity in private manufacturing firms when formal property rights protection remains weak. We show how network effects linked to inter-firm cooperation in industrial clusters allowed private entrepreneurs to quickly develop reliable business norms to reduce the inherent risk of malfeasance and contract breach in formal and informal collaborative efforts. Survey data from a sample of 700 manufacturing firms located in China’s Yangzi Delta region confirms that both formal and informal types of inter-firm collaboration are effective, though in different areas of innovative activity. Asian Business & Management (2015) 14, 283–302. doi:10.1057/abm.2015.11; published online 29 July 2015

Homophily in the Career Mobility of China’s Political Elite (Sonja Opper, Victor Nee and Stephan Brehm). Social Science Research 54: 332-352. 2015

Abstract
We argue that leadership promotion in China’s political elite relies on homophily for signals of trustworthiness and future cooperative behavior more than on economic performance. We first point to the limitation of the economic performance argument from within the framework of China’s specific M-form state structure, and then we proffer a sociological explanation for why higher-level elites in China rely on homophilous associations in recruiting middle-level elites to the top positions of state. Using a unique dataset covering China’s provincial leaders from 1979 to 2011, we develop a homophily index focusing on joint origin, joint education and joint work experience. We trace personal similarities in these respects between provincial leaders and members of China’s supreme decision-making body, the Politbureau’s Standing Committee. We then provide robust evidence confirming the persisting impact of homophilous associations on promotion patterns in post-reform China.

From Norms and Networks to Economic Institutions (Victor Nee and Sonja Opper). In Re-imagining Economic Sociology, Patrik Aspers and Nigel Dodd, Eds. Oxford: Oxford University Press. 2015

Assimilation Theory for an Era of Unprecedented Diversity (Richard Alba and Victor Nee), In Social Stratification in Sociological Perspective, David Grusky, Ed. Fourth edition: 721-728. 2014

Why Asian Americans are Becoming Mainstream (Victor Nee and Hilary Holbrow), Daedalus, Vol 142, No. 3: 65-75. 2013

Abstract
In contrast to earlier waves of immigration, the post–1965 Asian immigration to the United States has not spawned an exclusionist backlash among native whites. Rather, the new Asian immigrants and their children are rapidly gaining access to the American mainstream. Whether in integrated residential communities, in colleges and universities, or in mainstream workplaces, Asian Americans’ presence is ever more the rule, not the exception. The success of so many Asian American immigrants suggests that race may not be as decisive a factor in shaping socioeconomic attainment as it was in the American past; civil rights reform has been incorporated in a more inclusive American mainstream. As a group in which those of legal status predominate, Asian Americans have enjoyed more open access to mainstream institutions, paving the way to their rapid assimilation.

Entrepreneurs under Uncertainty: An Economic Experiment (Hakan Holm, Sonja Opper and Victor Nee), Management Science: 1671-1687. 2013

Abstract
This study reports findings from the first large scale experiment investigating whether entrepreneurs differ from other people in their willingness to expose themselves to various forms of uncertainty in decision tasks. A stratified random sample of 700 CEOs from the Yangzi delta region in China is compared to 200 control group members. Our findings suggest that entrepreneurs’ seem to be more willing to accept some forms of strategic uncertainty related to multilateral competition and trust. In contrast, entrepreneurs do not seem to differ from ordinary people when it comes to non-strategic forms of uncertainty, such as risk and ambiguity (JEL codes: C93; D21; L21)

A Theory of Assimilation (Victor Nee and Richard Alba), In Handbook of Rational Choice Social Research. Stanford: Stanford University Press: 355-380. 2013

Political Capital in a Market Economy (with Sonja Opper). 
Social Forces 88,5: 2105-3132. 2010

Abstract
This research applies a transaction-focused institutional analysis to compare the value of political capital in different institutional domains of China's market economy. Our results show that the value of political capital is associated with institutional domains of the economy in which agents can use political connections to secure advantages. Political capital is most fungible in institutional domains where government restricts economie activity. In this sense, the value of political connections in China does not differ fundamentally from patterns observable in established market economies. We interpret this as evidence suggesting China may have experienced a tipping point in its transition to a market economy around the turn of the new century.

A Theory of Innovation: Institutions, Markets and the Firm (with Jeong-han Kang and Sonja Opper). Journal of Institutional and Theoretical Economics 166: 397-425. 2010

A Theory of Innovation: Market Transition, Property Rights, and Innovative Activity. (Victor Nee, Jeong-han Kang and Sonja Opper) Mohr Siebeck GmbH & Co. KG 2010

Abstract
The aim of this paper is to specify a theory to explain why transitions to a market economy cause a shift to a higher level of innovation. Marketization increases the power of economic factors relative to political actors, increases inter-firm competition, creates new opportunities for entrepreneurship, and subsequently motivates innovative activity. For our empirical application, we focus on China's transition economy, which offers a broad range of institutional environments to examine the relation between market transition and increasing innovative activity by entrepreneurs and firms.

Bringing Market Transition Theory to the Firm (with Sonja Opper). In Research in the Sociology of Work 19: 3-34. 2009

Bureaucracy and Financial Markets (with Sonja Opper). Kyklos 62: 293-315. 2009

On Politicized Capitalism (with Sonja Opper) in On Capitalism, edited by Victor Nee and Richard Swedberg. Stanford: Stanford University Press, 2007.

Developmental State and Corporate Governance in China (with Sonja Opper and Sonia Wong). Management and Organization Review 3 (2007): 19-51.

Abstract
China's state-guided economic miracle has revitalized a long-standing and unsettled debate about the role of government in transformative economic development. In a firm-level study of corporate governance we examine whether direct state involvement actually makes a positive contribution to the economic performance of newly incorporated firms in China's urban economy. We show that direct intervention into the governance of firms is likely to yield negative economic effects at the firm level. We infer from our findings that it must be other types of government intervention external to the firm that explain the success of China's developmental state in promoting rapid economic growth.

Organizational Dynamics of Institutional Change: Politicized Capitalism in China. Pp. 53-74 In The Economic Sociology of Capitalism, edited by Victor Nee and Richard Swedberg. (Princeton: Princeton University Press, 2005).

Market Transition and the Firm: Institutional Change and Income Inequality in Urban China. (with Yang Cao). In Market and Organizational Review, 2005. (This is an electronic version of an article published in Management and Organization Review. Complete citation information for the final version of the paper is available via the journal’s website.)

Abstract
This paper examines how the rise of a market economy in urban China redefines the rules governing economic activities and affects on earnings inequality. We identify three causal mechanisms linked to institutional change that are transforming the firm’s employment practices: the higher marginal productivity of a private enterprise economy relative to state-owned enterprises, competition by firms for skilled and semi-skilled labor following emergence of labor markets and the end of state monopoly on labor allocation, and increased emphasis on merit-based reward systems in firms. Analyses of survey data from urban China show how these three causal mechanisms stemming from the transition to a market economy contribute to new patterns of earnings differentiation that increase income returns to human capital and private-sector entrepreneurship.

Remaking Inequality: Institutional Change and Income Stratification in Urban China. (Yang Cao and Victor Nee) Journal of the Asia Pacific Economy 2005

Abstract
This paper examines how China’s institutional changes toward market transform the income inequality in the urban economy. We highlight the replacement of bureaucratic allocation with market on three levels: the creation and expansion of the private/hybrid sector that is relatively autonomous from direct state control, public firms’ reduced dependence on the state and growing exposure to market discipline, and the emergence of urban labor markets. Indepth analysis of data collected in two southern Chinese cities during the mid-1990s provides strong and systematic support to market transition theory’s core claim that the transition toward a market economy leads to higher income returns to human capital. Although there are also signs of persistent advantages based on political capital, these advantages are limited to senior members of the communist party only and small in magnitude in comparison to those associated with market-based opportunities.

The New Institutionalism in Economics and Sociology. In Handbook of Economic Sociology (2nd ed.), edited by Neil Smelser and Richard Swedberg. Princeton: Princeton University Press, 2004.

Post-Communist Inequality: The Problem of Continuity and Discontinuity (with Yang Cao). Research on Social Stratification and Mobility, 19 (2002): 3-39

Networks Beyond the Ethnic Labor Market (with Jimy Sanders and Scott Sernau). Social Forces. 81 (2002): 281-314

Asian Immigrants’ Reliance on Social Ties in a Multiethnic Labor Market. (Victor Nee, Jimy Sanders, Scott Sernau) Social Forces 2002

Abstract
We study how the social capital and closure properties of family- and ethnic-based social networks influence the incorporation of immigrants into their host society. In so doing, we examine the relationship between immigrants' reliance on social ties and their employment. Data collected through ethnographic depth interviews of Asian immigrants in Los Angeles indicate that reliance on social ties usually operates informally, as when job seekers consult their more experienced and better-connected friends, relatives, and acquaintances and ask them to serve as intermediaries. These networks provide group based resources that assist immigrants in making headway in their new society. Yet reliance on social ties is most common for moves into jobs of low occupational prestige that have low human capital requirements. Because of linguistic and cultural competence, immigrants who seek jobs from co ethnic employers are often more self reliant in the job search than those who seek work more broadly. In this way, ethnolinguistic closure encourages ethnic segmentation in the labor market. By contrast, reliance on social ties, another form of closure, facilitates job hunting in the wider domain of the labor market, where prospective employers may be of any ethnicity. Reliance on social ties thereby provides a mechanism by which immigrants gain employment throughout the multi ethnic metropolitan labor market.

Postsocialist Inequalities: The Causes of Continuity and Discontinuity. (Victor Nee, Yang Cao) Elsevier Science Ltd. 2002

Trust in Ethnic Ties: Social Capital and Immigrants (with Jimy Sanders) Pp. 374-392 in Trust and Society, edited by Karen Cook (Russell Sage Foundation, 2001).

Understanding the Diversity of Immigrant Incorporation (with Jimy Sanders). Ethnic and Racial Studies, 2001.

 

Abstract
This article develops the concept of forms of capital as the basis of a model of immigrant incorporation. The model sets out the manner in which the social, financial, and human-cultural capital of immigrant families predict the sorting of immigrants into various labour market trajectories. For example, immigrants arriving with low stocks of financial and human- cultural capital are most likely to find employment in the ethnic economy, whereas immigrants with human-cultural capital that is fungible in the host society tend to gain employment in the broader mainstream economy. Event history analysis is employed to demonstrate the model on four patterns of job mobility common among immigrants: entrepreneurship, professional- managerial-technical jobs, employment in the public sector, and semi- or low-skilled factory work and low-paid service jobs. The findings show that the mix of capital immigrants arrive with, and subsequently accumulate, shapes the trajectory of their incorporation into the host society. The research is based on a field study of Asian immigrants in the greater Los Angeles area.

The Rational Peasant in China: Flexible Adaptation, Risk Diversification and Opportunity (with Lisa Keister). Rationality and Society (2001).

Abstract
A central component of economic development is the reallocation of household labor, typically form subsistence agriculture to non-farm employment. This occurred in the advanced market economies during the Industrial Revolution, contributing to increases in agrarian and industrial productivity and raising standards of living dramatically. A similar process began in China in the first decade of economic reform and has been central to the development of China's rural and urban economies. Despite its broad social implications, the process by which rural households allocate labor is not well understood. In this paper, we examine the strategies rural households used in the early stages of China's economic reform as they adapted to fundamental changes in the institutional structures of the nation's agrarian economy. Using a large, national sample, we explore the degree to which households diversified labor efforts across types of non-farm work. We find that peasant households allocated labor to non-farm work only after subsistence needs were met. We also observe that peasants generally responded to local and regional opportunities but that political capital, human capital, and cohort effects accounted for differences in household responses.

Gender Inequality and Nonfarm Employment in Rural China  (with Rebecca Matthews). Social Science Research 29 (2000): 606-632.

Abstract
This article joins the debate over the effect of market-driven economic development on women’s work opportunities and household gender inequalities. It assesses women’s opportunities for off-farm employment, the relative contributions of female off-farm workers to household income, and the distribution of power in families whose male members have left for off-farm jobs, leaving women behind in agricultural work. We find that women are not uniformly excluded from opportunities for off-farm employment and that economic development does not uniformly increase gender inequalities within Chinese households. Although men are more likely than women to obtain off-farm employment in China, women’s opportunities for off-farm work improve significantly when the coexistence of local and regional marketization creates a shortage of male workers and compels employers to hire women. The relative size of contributions to household income for male and female nonfarm workers also narrows incrementally with increased marketization. In addition, women who are left in agricultural work are more likely to become heads of household, a position which brings greater household decision-making power to female family members

Controversies and Evidence in the Market Transition Debate (with Yang Cao). American Journal of Sociology 105,4 (2000):1175-89.

The Role of the State in Making a Market Economy.  Journal of Institutional and Theoretical Economics 156, 2000. Pp. 64-88.

Abstract
This paper highlights the crucial role of the state in establishing a market eco- nomy, through an analysis of the early stages of market-oriented reforms in China. China followed an evolutionary approach to economic reform that has relied on the preexisting state to oversee the construction of a market economy. Trial-and-error problem solving in the formative stages of market transition led the central state inexorably to oversee institutional changes to establish a modern legal-rational bureaucracy. Although the state remains structurally vulnerable to rent seeking, it gained the organizational capacity to institute and enforce rules critical to the emergence of a hybrid mar

Path Dependent Societal Transformation: Stratification in Mixed Economies. (with Yang Cao). Theory and Society 28, 1999. Pp. 799-834.

The Emergence and Diffusion of Institutional Forms. (Victor Nee and David Strang) Mohr Siebeck GmbH & Co. KG 1998

Norms and Networks in Economic and Organizational Performance. American Economic Review 87.4, 1998. Pp. 85-9.

Embeddedness and Beyond: Institutions, Exchange and Social Structure. (with Paul Ingram). Pp. 19-45 in The New Institutionalism in Sociology, edited by M. Brinton and V. Nee (New York: Russell Sage Foundation, 1998).

Immigrant Self-Employment: The Family as Social Capital and the Value of Human Capital (with Jimy Sanders). American Sociological Review 60 (1996):231-250.

Abstract
We examine how self-employment among Asian and Hispanic immigrants is affected by family composition and human capital/class resources. Because of collective interests and strong personal ties, the family facilitates the pool- ing of labor power and financial resources. Enterprising immigrants draw on these resources when establishing and operating small businesses. Our find- ings also show the importance of human capital/class resources in account- ing for immigrant self-employment. Although foreign-earned human capital is usually not highly valued in the host labor market, immigrants successfully use this human capital to achieve business ownership. Interethnic variation in personal human capital and family composition accounts for a substantial portion of the observed interethnic variation in self-employment

Market Transition and Societal Transformation in Reforming State Socialism. (with Rebecca Matthews). Annual Review of Sociology vol. 22 (1996): 401-36.

Abstract
The far-reaching institutional change and societal transformation occurring in former state-socialist societies have attracted new social science interest in transition economies. This chapter reviews recent research on China, highlighting the theoretical arguments and findings of general interest to social scientists. The paper argues that a paradigm shift is taking place within research on China, from state-centered analysis to a theoretical approach that locates causal forces within a macrosocietal framework. Within a macrosocietal framework, state socialism is viewed as a distinctive institutional arrangement in which society, economy, and the state are integrated through society-wide redistributive arrangements. Forces in economic and political change emanate not only from political actors but from economic and social actors as well. The chapter reviews work in which a macrosocietal approach is used to address stratification, societal transformation, and marketization in reforming Chinese state socialism.

The Emergence of a Market Society: Changing Mechanisms of Stratification in China.American Journal of Sociology 100, 1996. Pp. 908-49.

Job Transitions in an Immigrant Metropolis: Ethnic Boundaries and Mixed Economy. (with Jimy Sanders and Scott Sernau). American Sociological Review 59, 1994. Pp. 849-72.

Abstract
We examine the job transitions of Asian immigrants in the metropolitan economy of Los Angeles. In such ethnically heterogeneous cities, ethnic boundaries are porous and are mediated by an intermediate mixed economy. Ethnographic interviews reveal that many immigrants prefer jobs outside the ethnic economy to obtain higher wages and fairer work rules. Multivariate analyses find that, across a succession of jobs and over time, immigrants tend to drift away from the more informal ethnic economy of the metropolis, a move that leads to higher earnings. The use of ethnic ties to locate jobs also declines. The main attraction of participation in the ethnic economy is the opportunity for self-employment. Our model of the immigrant labor market moves beyond the dualist representation of the ethnic enclave economy. We conceive of the metropolitan labor market as shaped by firm size, degree of bureaucratization, and governance structure in which interethnic economic transactions are mediated through a growing mixed economy

Organizational Dynamics of Market Transition: Hybrid Property Forms and Mixed Economy in China. Administrative Science Quarterly 37, 1992. Pp. 1-27.

Abstract
This paper underscores the importance of hybrid forms in the current market transitions in state socialism through an examination of the emergence of marketized firms and cadre-entrepreneurs in China. The paper develops a new-institutionalist analysis of the organizational dynamics that propel market transition in reforming state socialism. Under conditions of partial reform, marketized firms enjoy a transaction cost advantage over alternative governance structures. Changes in the institutional environment stemming from the spread of markets and the changing structure of property rights, however, increasingly favor private firms. Nonetheless, a mixed economy characterized by a diversity of organizational forms and a plurality of property rights will be a persistent feature of transitions from state socialism. Analysis of the interaction between government, enterprise, and market forces illustrates how the new-institutionalist perspective is applied to a dynamic model of market transition in China.*

Problems in Resolving the Enclave Economy Debate. (Victor Nee and Jimy M. Sanders) American Sociological Association 1992

Social Inequalities in Reforming State Socialism: Between Redistribution and Markets in China. American Sociological Review 56 (1991): 267-282.

Abstract
This article extends market transition theory to an analysis of inequality under the condi- tions of partial reform in China. Logit regression analysis indicates cadres (officials) have no greater odds than other households of being among the privileged or avoiding poverty. Entrepreneurs andformer team cadres, however, are advantaged. Despite the rise of a hy- brid elite of entrepreneurs who are currently cadres that capitalizes on redistributive power to gain competitive advantage in the marketplace, increases in income inequality are mod- est. When market reform stimulates improved economic performance, the poor appear to benefit and experience comparable improvements in household income. As a result, there is only a slight increase in inequality, at least in the early stages of market reform. The empir- ical analysis is based on survey data collected in rural China in 1985

Peasant Entrepreneurs in China’s “Second Economy”: An Institutional Analysis. (Victor Nee, Frank W. Young) The University of Chicago 1991

Institutional Change and Economic Growth in China: The View from the Villages. (Victor Nee, Su Sijin) Association for Asian Studies 1990

A Theory of Market Transition: From Redistribution to Markets in State Socialism. American Sociological Review 54 (1989): 663-681.

Abstract
State socialist redistributive economies are characterized by the allocation and distribution of goods through central planning. This paper develops a theory of market transition which argues that, in reforming socialist economies, the transition from redistributive to market coordination shifts sources of power and privilege to favor direct producers relative to redistributors. The shit improves incentives for direct producers, stimulates the growth of private markets, and provides to entrepreneurs -an alternative path for socioeconomic mobility. A set of hypotheses test the market transition theory with household- and village-level data

Limits of Ethnic Solidarity in the Enclave Economy (with Jimy Sanders). American Sociological Review 52 (1987): 745-767.

The Peasant Household Economy and Decollectivization in China. (Victor Nee) Journal of Asian and African Studies 1986

Abstract
"A critical problem of the people's commune system was the inability to resolve the "free rider" problem within the framework of collective agriculture. The appeal of household production to both the State and peasants has been the dramatic increase in agricultural productivity and household income. Unlike collective farming, household production minimizes the "free rider" dilemma. Decollectivization and the expansion of rural markets has brought about significant socio-economic changes in the Chinese countryside, some unintended by State reformers. These unintended consequences of decollectivization, however, threaten to undermine the social goals of the Chinese Communist Party."

Asian American Socioeconomic Achievement: The Strength of the Family Bond. (Victor Nee and Herbert Y. Wong) Sage Publications, Inc. 1985

Abstract
The analysis emphasizes the need to examine structural and cultural factors in the sending and receiving countries over a historical process to understand how immigrants are incorporated in American society. The article argues that Chinese were slower to make the transition from sojourner to immigrant due to structural characteristics of Chinese village society; whereas Japanese immigrants were not tied by strong family bonds to Japan and made a more rapid transition. The differen- tial timing of family formation and family-run businesses in America account for the more rapid assimilation of Japanese Americans. Changing labor markets after World War II provided new opportunity structures favorable to the socioeconomic mobility of native-born Chinese and Japanese Americans

Peasant Household Individualism. (Victor Nee) Taylor & Francis Ltd. 1984