ABSTRACT
Classical theorists sought the causes of inequality primarily in the economy: the market place, the structure of ownership, and wage dependency. In modern political economy, inequalities are commonly seen as the outcome of interacting processes in several arenas: The most important ones, in addition to the economy, are politics and family. One of the major issues in contemporary theoretical controversy is the relative importance of these arenas in explaining economic and social results. The markets versus politics issue, in particular, has attracted much attention. “Markets and politics, the invisible hand and the visible hand, can be seen as institutionalized, partly alternative, strategies or arenas for mobilization of resources, distribution of rewards and the steering of society” (Korpi 1987).
