The Disutility of Labor

Abstract

Some Austrian economists have argued that the disutility of labor is a necessary auxiliary empirical assumption to complement otherwise a priori economic theory in order for it to apply to the real world. Without this assumption, it is claimed that individuals will supply the full quantity of labor of which they are physically capable. We argue that the disutility of labor assumption is unnecessary to derive this conclusion, which can instead be derived through standard marginal analysis. Leisure (the state of not engaging in labor) is a necessary complementary good for consuming other goods. As such, leisure’s status as a consumer good is a priori true, not an empirical assumption. Furthermore, the concept of disutility of labor is not only unnecessary but also leads to confusion due to its being used in two different ways, and therefore ought to be discarded.

The Disutility of Labor: A Comment on Fegley and Israel

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Fegley and Israel (2020) have advanced the thesis that the status of leisure as a consumer good is an immediate inference from the action axiom rather than an empirical postulate as maintained by Mises and Rothbard. This comment argues that we can easily imagine a world in which leisure does not represent the opportunity cost of labor, and that Mises and Rothbard have been misconstrued.

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“…I n their article, Tate Fegley and Karl-Friedrich Israel (2020) make two bold and sweeping claims. The first concerns the foundations of praxeology, the method of Austrian economics.…”