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What are the shortcomings of the Neo-classical description of the labour market exchange, which is based on the notion of the price mechanism?
One of the shortcomings of the Neo-classical description is the lack of a social aspect. The labour market should be intertwined with society. Your position in society has a large influence on the level and type of job you are expected to achieve and which jobs you believe that you can do. Levels of education, especially secondary education, and the opportunities available after secondary schooling will open more or less doors for you into the labour market. Social aspects also include family and the increasing popularity of part time jobs or job sharing, especially among women.
- The Hechsler - Ohlin Theory
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- What are the shortcomings of the Neo-classical description of the labour market exchange, which is based on the notion of the price mechanism?
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