What is the classic labor market theory?

As the mainstream school of contemporary labor economics, the labor market theory of classical school originated from the classical economic tradition represented by Adam Smith, david ricardo and19th century economists. Later Marshall, Pigou, Hicks, Douglas, Michelle, Becker, etc. Important progress has been made in this regard. The school's main views on the operation of the labor market are: (1) From the theoretical framework, it emphasizes the role of market mechanism and market factors in determining the wage level and the allocation of labor resources. Neoclassical labor economic theory generally extracts or assumes the influence of other non-market factors in the operation of the labor market, including laws, enterprise systems, property rights and wealth distribution. (2) In terms of the nature of the market and the operating mechanism of the labor market, although the school admits that the labor market has some special attributes (for example, they think that the labor market is divided to a certain extent due to geographical and biological factors, especially age), even so, they think that the influence of these factors is strictly controlled by market competition, and the theoretical model for analyzing the product market and other factor markets is also applicable to the labor market.

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