Recognition theory and heterodox labour economics: points of contact

The encounter of recognition theory with the world of work will be enhanced if it can find useful dialogue partners within the discipline of economics. It is the argument of this paper that potentially fruitful points of contact will be found with heterodox labour economics. Institutionalism, a branch of heterodox economics, is one potential dialogue partner for recognition theory. The institutionalist approach postulates that it is the interplay of socio-cultural, political as well as economic forces that determine the structure and outcomes of labour markets. Consequently, the institutionalist approach adopts both a multidisciplinary perspective and a wide range of research methodologies when studying labour markets. In order to demonstrate the potential compatibility of institutionalism with recognition theory the paper will discuss a key institutionalist concept, the internal labour market. The paper will also examine the topic of workers’ rights which is clearly an area of interest for recognition theory. Specifically, the paper will draw upon the work of the radical US labour economist Richard Edwards on rights at work. An issue that will receive particular attention is that of enterprise rights, which are normally articulated in employee handbooks. These rights have proved difficult to enforce yet they are of great significance for workers in non-union workplaces.