Abstract
This article contributes to the reemerging field of economic sociology by (1) delving into its classic roots to refine current concepts and (2) using examples from the immigration literature to explore the different forms in which social structures affect economic action. The concept of social "embeddedness" provides a suitable theoretical umbrella, although in analyzing its specific manifestations, the article focuses on the concept of social capital. The various mechanisms through which social structures affect economic action are identified and categorized and their consequences, positive and negative, highlighted. The propositions that summarize the different parts of the discussion attempt to move these concepts beyond sensitizing generalities to hypothesis-like statements that can guide future research. Recent work in economic sociology represents one of the most exciting developments in the field insofar as it promises to vindicate the heritage of Max Weber in the analysis of economic life and, by the same token, to rescue this vast area from the exclusive sway of the neoclassical perspective. Spearheaded by Mark Granovetter's (1985) critique of a pure "market" approach to economic action, the sociological perspective has been reinforced by the introduction and subsequent use of the concepts of "social capital" (Bourdieu 1979; Bourdieu, Newman, and Wocquant