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The Division of Labor Under Homogeneity: A Critique of Mises and Rothbard

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  • Walter Block
  • Per Henrik Hansen
  • Peter G. Klein

Abstract

. Even the most passionate defenders of free trade, such as Mises and Rothbard, claim that trade cannot occur under conditions of strict homogeneity of land, labor, and capital. We show that specialization, trade, and the division of labor can emerge even when resources are initially homogenous, due to “natural heterogeneity,” economies of scale, and learning.

Suggested Citation

  • Walter Block & Per Henrik Hansen & Peter G. Klein, 2007. "The Division of Labor Under Homogeneity: A Critique of Mises and Rothbard," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(2), pages 457-464, April.
    • Handle: RePEc:bla:ajecsc:v:66:y:2007:i:2:p:457-464
    DOI: 10.1111/j.1536-7150.2007.00520.x
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    References listed on IDEAS

    as
    1. Bryan Caplan, 1999. "The Austrian Search for Realistic Foundations," Southern Economic Journal, John Wiley & Sons, vol. 65(4), pages 823-838, April.
    2. Kirsten Foss & Nicolai J. Foss & Peter G. Klein & Sandra K. Klein, 2007. "The Entrepreneurial Organization of Heterogeneous Capital," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1165-1186, November.
    3. Laurence S. Moss, 2001. "Why the Preaching Must Never Stop: Henry George’s and Paul Krugman’s Respective Contributions to the Free Trade Debate," American Journal of Economics and Sociology, Wiley Blackwell, vol. 60(5), pages 137-164, November.
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

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