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The New Economy and the American Dream: Examining the Effect of Work Conditions on Beliefs about Economic Opportunity

Recent decades have seen major changes in economic conditions in the United States, including large-scale layoffs and downsizing, erosion of job quality for some workers, and increased reliance on nonstandard workers. Researchers have investigated the objective contours of this new economy, but few have investigated the consequences of these changes for popular attitudes about economic opportunity. Using data from the 1998 Indiana Survey of Workers in a Polarized Economy (N = 853), I investigate this new economic landscape and its effects on people's views about economic opportunity. I find that job deterioration and experiences with layoffs and job threats are creating pessimism about the American Dream among Indiana workers.