Labor Economics from an Austrian Perspective

Abstract

The compelling case offered by Austrians regarding the recent economic downturn has no doubt encouraged many to take a closer look at the broader Austrian perspective. Similarly, the jobless recovery has prompted some soul searching in labor economics. We briefly review the history and methodology of the Austrian school and describe major contributions to labor economics from those working in the Austrian tradition. Then, we offer a sketch of the Austrian theory of labor markets and discuss its implications. In doing so, we hope to have helped the interested reader along both lines.

Keywords: Austrian, Austrian business cycle theory, Böhm-Bawerk, entrepreneurship, Hayek, labor, labor theory of value, marginalism, Mises, search, uncertainty, unemployment

JEL Classification: B53, E00, E2, E3, E4, E5, E6, J00, J2, J3, J5, J6, J7, J8