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

In: Labor Economics From A Free Market Perspective Employing the Unemployable

Author

Listed:
  • 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, 2008. "The Division of Labor Under Homogeneity: A Critique of Mises and Rothbard," World Scientific Book Chapters, in: Labor Economics From A Free Market Perspective Employing the Unemployable, chapter 25, pages 337-344, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812790798_0025
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    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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