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The Development of the Neoclassical Tradition in Labor Economics

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  • George R. Boyer
  • Robert S. Smith

Abstract

This essay on labor economics examines neoclassical theory's rise to ascendancy following the second World War, with a secondary focus on the relative decline but continued influence of institutionalist economic theory. The authors describe the evolution of institutional and neoclassical theory from the late nineteenth to mid-twentieth centuries, examine some early intellectual debates between the two camps, briefly describe the work of neoclassical labor economics pioneers, and look at major developments over the past 30 years. They argue that neoclassical economists' increasing intellectual breadth and influence in public policy have led them to pay closer attention to issues that have long been of concern to institutionalists and “neoinstitutionalists.â€

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  • George R. Boyer & Robert S. Smith, 2001. "The Development of the Neoclassical Tradition in Labor Economics," ILR Review, Cornell University, ILR School, vol. 54(2), pages 199-223, January.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:2:p:199-223
    DOI: 10.1177/001979390105400201
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    3. Bruce E. Kaufman, 2018. "How Capitalism Endogenously Creates Rising Income Inequality and Economic Crisis: The Macro Political Economy Model of Early Industrial Relations," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(1), pages 131-173, January.
    4. Dagmar Brožová, 2016. "Forming the Modern Labour Market Economics: On the Role of Institutionalist Theories [Utváření moderní ekonomie trhů práce: neoklasické paradigma s institucionálními teoriemi]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2016(6), pages 56-68.
    5. Ellen Mutari & Deborah Figart & Marilyn Power, 2001. "Implicit Wage Theories in Equal Pay Debates in the United States," Feminist Economics, Taylor & Francis Journals, vol. 7(2), pages 23-52.
    6. Bruce E. Kaufman, 2012. "An Institutional Economic Analysis of Labor Unions," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51, pages 438-471, April.
    7. Vassil Tsanov & Iskra Beleva, 2014. "Is the labor market in Bulgaria segmented?," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-20,21-38.
    8. Fong, Eric A. & Xing, Xuejing & Orman, Wafa Hakim & Mackenzie, William I., 2015. "Consequences of deviating from predicted CEO labor market compensation on long-term firm value," Journal of Business Research, Elsevier, vol. 68(2), pages 299-305.
    9. Bruce E. Kaufman, 2010. "Chicago and the Development of Twentieth-Century Labor Economics," Chapters, in: Ross B. Emmett (ed.), The Elgar Companion to the Chicago School of Economics, chapter 9, Edward Elgar Publishing.

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