political economy Political economy is the study of how economic systems (e.g. markets and national economies) and political systems (e.g. law, institutions, government) are linked. Widely studied phenomena within the discipline are systems such as labour ...

, decommodification is the strength of social entitlements and citizens' degree of immunization from market dependency. In regards to the labor force, decommodification describes a "degree to which individual, or families, can uphold a socially acceptable

standard of living Standard of living is the level of income, comforts and services available, generally applied to a society or location, rather than to an individual. Standard of living is relevant because it is considered to contribute to an individual's quality ...

independently of market participation." While commodification is the transformation of

goods In economics, goods are items that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not ...

, services,

idea In common usage and in philosophy, ideas are the results of thought. Also in philosophy, ideas can also be mental representational images of some object. Many philosophers have considered ideas to be a fundamental ontological category of bei ...

s and people into

commodities In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a co ...

or objects of trade, decommodification would be the "extent that workers can leave the labor market through choice."

Contemporary research

Gender inequality

The idea of decommodification as an egalitarian concept as set forth by Esping Andersen sparked contemporary research efforts focusing on perceived inequities. In 2008, a research journal pointed out a feminist critique that "the absolute focus on the welfare of individuals who are already working" leaves a central bias in the pursuit of decommodification. Rather, the objective of women is often to be commodified in the first place so that they can enter the labor market.

Environmental impact

Decommodification has been identified by ecological economists as a strategy for

sustainable consumption Sustainable consumption (sometimes abbreviated to "SC") is the use of products and services in ways that minimize impacts on the environment in order for human needs to be met in the present but also for future generations. Sustainable consumption ...

that acts one level up on the institutional context of consumption in Western societies as compared to strategies such as eco-efficiency and eco-sufficiency. Thus, while the eco-efficiency strategy targets the product and the eco-sufficiency strategy targets the person (the consumer as decision-maker), the decommodification strategy targets the institutional context in which consumption takes place. It aims to decrease the influence of commodities and to limit the effect of commercialization.

Social democracy paradox

Esping-Andersen's fundamental study of decommodification sparked contemporary academic research efforts hoping to resolve "paradoxes" in this application. Exiting the labor market with little or no loss of income clashed with the idea that social democracy has the goal of high labor force participation. Research efforts to resolve this paradox showed that "employment impeding policies" came out of Christian democracy institutions, not social democracy institutions. This research suggests that decommodification in the social democratic model is viable.

Example

Scandinavian countries are the closest to decommodification according to the scale created by Esping Andersen's research which places Sweden as the most decommodified country in the 1980s. Sweden's level of pensions, sickness entitlements and unemployment insurance are the highest among many other leading industrial countries. Sweden's social welfare programs are mandated by the government which also offers a ''de facto'' guarantee to the wages of citizens' rather than taking averages and creating regulations through a means-based test on citizens' wages, level of education and their past history with the law.

Criticism

Several

free market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...

proponents, such as

Austrian School The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian scho ...

philosophers

Ludwig Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School economist, historian, logician, and sociologist. Mises wrote and lectured extensively on the societal contributions of classical liberalism. He is ...

and

Murray Rothbard Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American economist of the Austrian School, economic historian, political theorist, and activist. Rothbard was a central figure in the 20th-century American libertarian ...

argue that markets are the best way to supply all goods or services efficiently. Providing services via the market reduces the effect of Government inefficiency.

Notes

{{reflist Political economic concepts Social democratic concepts