The labour market myth

This chapter introduces the central thesis of the book. It argues that the ideal-typical labour market from economics textbooks is neither feasible nor desirable. It starts with four concrete examples to demonstrate that the standard labour market model cannot explain some important well-known phenomena regarding work and income, namely rising top incomes, growth of non-standard employment relations, non-financial work motives and persistent unemployment. It introduces four alternative factors that affect labour market opportunities but do not fit into the standard labour market model, namely category, social relationships, chance and current position. It concludes that an alternative approach to work and income is needed that departs from the market model.