Radical Political Economy and the Economics of Labor Markets
Author(s)
Buchele, Robert A.; Christiansen, Jens
Abstract
Radical political economy (RPE) is a school of thought that has emerged from, and draws on, both Marxian and neoclassical economics. Three fundamental ideas define RPE. First, economics is intrinsically political: key economic processes depend on society’s institutional power relationships. Second, institutional change is desirable; existing institutions are less efficient, and/or less just, than some feasible alternatives. Third, existing economic structures are the contingent results of particular historical events, and therefore need not be optimal or efficient. The RPE perspective has produced an important body of theory and empirical research in labor economics. This article reviews and critiques the RPE contributions in two broad areas: the nature of the firm, technology, and work; and the segmentation of labor markets. An exhaustive bibliography appears in the original article.
