The Labor Auction
Chapter 3 investigates whether a thought experiment proposed—and rejected—by Ronald Dworkin can be used to identify impersonal envy-free labor-income bundles. In the thought experiment, everyone is equally talented and thus free to choose any job. The labor-income bundles that would arise in such a thought experiment would be sensitive to each individual’s choices, but insensitive to each individual’s place in the distribution of natural talents, satisfying Dworkin’s two desiderata of ambition-sensitivity and endowment-insensitivity. Dworkin, however, rejects the thought experiment as unworkable. This chapter clarifies Dworkin’s objection to the thought experiment and then shows that there is, in fact, an easy fix. The revised thought experiment identifies impersonal envy-free labor-income bundles.