This article reviews how some social scientists have transcended disciplinary boundaries in their scholarship on wage formation and proposes specific pathways for further trespassing. It contends that an interdisciplinary political economy should connect power to prices. This means that economists should bring power — including political influence and social status — into the heart of their analysis of wage formation, and sociologists and political scientists should extend their analysis of social structure and power dynamics to their endpoint in wage levels. The article concludes with suggestions for how to integrate political and/or sociological perspectives with economic models, both in theory and in empirical research.

About the author

Steven Vogel

Steven Vogel

Chair and Head Graduate Advisor, Designated Emphasis in Political Economy

Steven K. Vogel is director of the Political Economy Program, the Il Han New Professor of Asian Studies, and a professor of political science and political economy at the University of California, Berkeley. He specializes in the political economy of advanced industrialized nations, especially Japan. His most recent book, entitled Marketcraft: How Governments Make Markets Work (Oxford, 2018), argues that markets do not arise spontaneously but rather are crafted by individuals, firms, and most of all by governments. Thus “marketcraft” represents a core function of government comparable to statecraft. The book systematically reviews the implications of this argument, critiquing prevalent schools of thought and presenting lessons for policy.

He won the Northern California Association of Phi Beta Kappa Teaching Excellence Award in 2002 and the UC Berkeley Faculty Award for Outstanding Mentorship of Graduate Student Instructors in 2005. He was awarded a commendation from the Japanese minister of foreign affairs for his contribution to Japanese studies in 2018. He has been a columnist for Newsweek-Japan and the Asahi Shimbun, and he has written extensively for the popular press. He has worked as a reporter for the Japan Times in Tokyo and as a freelance journalist in France. He has taught at the University of California, Irvine, and Harvard University. He has a B.A. from Princeton University and a Ph.D. in political science from the University of California, Berkeley.