Hierarchy of Ideals in Market Interactions: An Application to the Labor Market

Aurelie Charles

Economics Working Paper Archive from Levy Economics Institute

Abstract: This paper argues that a hierarchy of ideals exists in market interactions that sets the benchmark on the norm of fairness associated with these interactions, thus affecting pricing decisions associated with market exchange. As norms emerge, an ideal determines the criteria of optimal behavior and serves as a basis for market exchange. Norms homogenize the diversity of commodities in market interactions according to a hierarchy of norms and values. The paper then goes on to illustrate how this hierarchy of ideals works in the labor market, leading to inequality of access to jobs and wages between groups of individuals. Groups socially perceived to be diverging from the context-dependent dominant ideal are likely to suffer most in market interactions.

Keywords: Market Exchange; Norms; Optimality; Labour Market (search for similar items in EconPapers)
JEL-codes: B00 D1 E31 J31 J71 P00 (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-hme, nep-mac, nep-pke and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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