Abstract

This paper argues that a certain kind of alienation from labour can be analyzed and explained in the theoretical framework that is dominant in current economics. Given a neoclassical model of a labour market, the intrinsic value that different kinds of labour may have for people can be represented as a source of utility (in the technical sense). It can then be shown that in capitalist economies, basing one’s supply decisions on this intrinsic value is predictably costly. So in the long run, rational agents can be – and will be – expected to make their labour supply decisions based only on considerations of income and leisure time. In the resulting picture, rational agents are indifferent with regard to different qualitatively specific kinds of labour. I draw on the theory of efficiency wages to show that this picture lies at the root of contemporary problems like involuntary unemployment and injustice.