decommodification

Decommodification is a concept in social policy and political economy describing the degree to which individuals' access to essential goods and services is insulated from participation in the labor market. In a highly decommodified system, social rights and public provisions enable people to meet basic needs even when unemployed or not actively working; in a highly commodified system, access is predominantly determined by purchasing power and labor-market status.

The term originated with Karl Polanyi in The Great Transformation (1944), where he argued that labor and other elements of the social order should not be treated as ordinary commodities. In welfare-state analysis, the concept was developed further by scholars such as Gosta Esping-Andersen, who compared welfare regimes on the basis of how social programs reduce dependence on the market and thereby expand or contract individual autonomy.

Mechanisms include universal health care, pensions, unemployment insurance, child benefits, and public or subsidized housing. The degree of decommodification is often assessed with indicators related to eligibility, universality, benefit levels, and the extent to which rights attach to citizenship rather than employment. Researchers sometimes summarize these assessments in a decommodification index or related measures to classify welfare regimes.

Implications: High decommodification can promote income security and social solidarity but may require higher taxes and public spending; critiques emphasize potential trade-offs with work incentives, administrative complexity, and fiscal sustainability. Debates also consider how decommodification interacts with globalization, labor market flexibilization, and political coalitions.