.
I was born in Pottsville, Pennsylvania, a little coal mining
town in Eastern Pennsylvania, where my father owned a small business. He
had first gone into business for himself after leaving Montreal and his
family for the United States when he was only sixteen-years old. He
moved many times in the eastern United States before settling in
Pottsville in the mid-1920s. My two sisters, Wendy and Natalie, and
brother, Marvin, were also born there. However, when I was four or five
we moved to Brooklyn, New York, where my father became a partner in
another business.
I went to elementary school and high school in
Brooklyn. I was a good student, but until age sixteen was more
interested in sports than intellectual activities. At that time I had to
decide between being on the handball and math teams since they met
during the same time period. It was indicative of my shift in priorities
that I chose math, although I was better at handball.
My father had left school in Montreal after the 8th
grade because he was eager to make money. My mother - whose family
emigrated from Eastern Europe to New York City when she was six months
old - also left after the 8th grade because girls were not expected to
get much education. There were only a few books in our house, but my
father kept up with the political and financial news, and my older
sister read a lot. After my father lost most of his sight, I had the
task of reading him stock quotations and other reports on financial
developments. Perhaps that stimulated my interest in economics, although
I was rather bored by it.
We had many lively discussions in the house about
politics and justice. I believe this does help explain why by the time I
finished high school, my interest in mathematics was beginning to
compete with a desire to do something useful for society. These two
interests came together during my freshman year at Princeton, when I
accidentally took a course in economics, and was greatly attracted by
the mathematical rigor of a subject that dealt with social organization.
During the following summer I read several books on economics.
To be financially independent more quickly, I decided at
the end of my first year to graduate in three years, a seldom used
option at Princeton. I had to take a few extra courses during the next
year, and I chose reading courses in modern algebra and differential
equations for the summer afterwards. For the equations course, I was
given a set of unpublished lectures that emphasized existence proofs and
uniqueness of solutions to differential equations. I learned a lot
about such proofs, but very little about actually solving one of these
equations. Still, my heavy investment in mathematics at Princeton
prepared me well for the increasing use of mathematics in economics.
I began to lose interest in economics during my senior
(third) year because it did not seem to deal with important social
problems. I contemplated transferring to sociology, but found that
subject too difficult. Fortunately, I decided to go to the University of
Chicago for graduate work in economics. My first encounter in 1951 with
Milton Friedman's course on microeconomics renewed my excitement about
economics. He emphasized that economic theory was not a game played by
clever academicians, but was a powerful tool to analyze the real world.
His course was filled with insights both into the structure of economic
theory and its application to practical and significant questions. That
course and subsequent contacts with Friedman had a profound effect on
the direction taken by my research.
While Friedman was clearly the intellectual leader,
Chicago had a first class group of economists who were doing innovative
research. Especially important to me were Gregg Lewis's use of economic
theory to analyze labor markets, T.W. Schultz's pioneering research on
human capital, Aaron Director's applications of economics to anti-trust
problems, and industrial organization more generally, and L. J. Savage's
research on subjective probability and the foundation of statistics.
I published two articles in 1952, based on my research
at Princeton. But I realized shortly after arriving in Chicago that I
had to begin to learn again what economics is all about. I published
nothing else until an article written with Friedman and a book based on
my Ph.D. dissertation came out in 1957. The book contains the first
systematic effort to use economic theory to analyze the effects of
prejudice on the earnings, employment and occupations of minorities. It
started me down the path of applying economics to social issues, a path
that I have continued to follow.
The book was very favorably reviewed in a few major
journals, but for several years it had no visible impact on anything.
Most economists did not think racial discrimination was economics, and
sociologists and psychologists generally did not believe I was
contributing to their fields. However, Friedman, Lewis, Schultz, and
others at Chicago were confident I had written an important book.
Support by the people I respected so highly was crucial to my
willingness to persevere in the face of much hostility.
After my third year of graduate study I became an
Assistant Professor at Chicago. I had a light teaching load and could
concentrate mainly on research. However, I felt that I would become
intellectually more independent if I left the nest and had to make it on
my own. After three years in that position, I turned down a much larger
salary from Chicago to take a similar appointment at Columbia combined
with one at the National Bureau of Economic Research, then also located
in Manhattan. I have always believed this was the correct decision, for
I developed greater independence and self-confidence than seems likely
if I remained at Chicago.
For twelve years I divided my time between teaching at
Columbia and doing research at the Bureau. My book on human capital was
the outgrowth of my first research project for the Bureau. During this
period I also wrote frequently cited articles on the allocation of time,
crime and punishment, and irrational behavior.
At Columbia I began a workshop on labor economics and
related subjects--anything that interested us was "related."
This involved transplanting the workshop system of supervising doctoral
research from Chicago - where it originated. After a few years, Jacob
Mincer joined the Columbia department and became co-director of the
workshop. We had a very exciting atmosphere and attracted most of the
best students at Columbia. Both Mincer and I were doing research on
human capital before this subject was adequately appreciated in the
profession at large, and the students found it fascinating. We were also
working on the allocation of time, and other subjects in the forefront
of research.
I married for the first time in 1954, and have two
daughters from that marriage, Judy and Catherine. To provide a better
family atmosphere I lived in the suburbs and commuted to Columbia and
the Bureau. Eventually, I began to tire of commuting and decided either
to move into New York or to leave Columbia for another university. I
also was beginning to feel intellectually stale.
My decision to leave was hastened by the student riots
in 1968. I believed that Columbia should take a firm hand and uphold the
right to free inquiry without student intimidation. The central
administration wanted to do this, but it was incompetent, and was
opposed by many faculty who behaved no better than the students.
In 1970, I returned to Chicago, and found the
atmosphere there very stimulating. The department was still powerful,
especially after it had added George Stigler and Harry Johnson. Stigler
and I soon became close friends, and he had a very large effect on my
subsequent intellectual development. We wrote two influential papers
together: a controversial one on the stability of tastes, and an early
treatment of the principle-agent problem. Stigler also renewed my
interest in the economics of politics; I had published a short paper on
this subject in 1958. In the 1980s I published two articles that
developed a theoretical model of the role of special interest groups in
the political process.
But mainly I worked on the family after returning to
Chicago. I had much earlier used economic theory to try to understand
birth rates and family size. I now began to consider the whole range of
family issues: marriage, divorce, altruism toward other members,
investments by parents in children, and long term changes in what
families do. A series of articles in the 1970s culminated in 1981 in
A Treatise on the Family . Since I continued to work on this
subject, a greatly expanded edition was published in 1991. I have tried
not only to understand the determinants of divorce, family size, and the
like, but also the effects of changes in family composition and
structure on inequality and economic growth. Most of my research on the
family, and that by students and faculty at Chicago and elsewhere, was
presented at the Workshop in Applications of Economics that
Sherwin Rosen and I run.
For a long time my type of work was either ignored or
strongly disliked by most of the leading economists. I was considered
way out and perhaps not really an economist. But younger economists were
more sympathetic. They may disagree with my analysis, but accept the
kind of problems, studied as perfectly legitimate. During the past ten
years I have received much tangible evidence of this shift in
professional opinion, including the presidency of the American Economic
Association, the Seidman Award, and the first social science Award of
Merit from the National Institute of Health.
In 1983, the Sociology Department at Chicago offered me
a joint appointment. I was happy to accept because this was an
outstanding department. Its invitation to me gave a signal to the
sociology profession that the rational choice approach was a respectable
theoretical paradigm. James Coleman and I shortly thereafter began an
interdisciplinary faculty seminar on rational choice in the social
sciences that has been far more successful than we anticipated.
Until 1985, I had published only technical books and
technical articles in professional journals. At that time, I was
surprised by being asked to write a monthly column for Business Week
magazine. Since I feared that I could not write for a general audience,
I was inclined to turn the offer down. Finally, however, I agreed to do
some columns on an experimental basis. It was a wise decision, for I was
forced to learn how to write about economic and social issues without
using technical jargon, and in about 800 words per column. Doing this
has enormously improved my capacity to discuss important subjects
briefly and in simple language. The pressure of having to do a column
every month also makes me stay abreast of many subjects that interest
the business and professional readers of the magazine.
I married for the second time in 1980 to Guity Nashat -
my first wife died in 1970. This gave me two stepsons, Michael and
Cyrus, to go with two daughters. Guity is the one who overcame my
reluctance to do the Business Week columns. She is an historian
of the Middle East with professional interests that overlap my own: on
the role of women in economic and social life, and the causes of
economic growth. The personal and professional compatibility she
provides has made my life so much better.
|