Her research focuses on the sociology of economic policy. Some of her early work focused on debates and social movements surrounding monetary policy in the U.S. in the decades immediately following the Civil War. Her doctoral dissertation and book, Managing Mexico, examine historical changes in the economics profession in Mexico. Babb is co-author, with Bruce Carruthers, of a textbook on economic sociology entitled Economy/Society: Markets, Meanings, and Social Structure. Her current interests include the International Monetary Fund and historical changes, fads, and fashions in economic policy reforms prescribed for developing countries.