Technological and Institutional Change in The Context of Veblen's Dichotomy

Abstract

A unique way to study the labor market is to examine it through the prism of Veblenian dichotomy, reflecting the asynchrony of technological and institutional changes, the contradiction between instrumental and ceremonial values. Within the scope of the dichotomy, the article reveals the most important processes: the interaction between values, formal and informal institutions; automation and disadvantages of the modern labor market, the gap between specialists with deep knowledge, involving long-term training, and superficial skills that do not require fundamental and intensive tuition; increasing returns; issues of deindustrialization and reindustrialization. Each of the above factors is the object of our research, since it has a tremendous impact on the functioning of the mechanism of the modern labor market. The study revealed that reindustrialization manifests itself through overcoming the Veblenian dichotomy and is a response to events centered around technological changes and increasing returns.