The Socio-Political Foundations of Capitalism and Its Transformations

Field of Research

The main object of investigation for the School – as well as the MPIfG in which it is embedded – is capitalism as a sociopolitical formation that changes over time and manifests itself in different forms depending on the social and institutional context. In particular, the School focuses on three types of social formations that are constitutive of capitalism: institutions (both economic and political), markets, and organizations. Institutions are normative constructs that generate social order by constraining specific actions while supporting others. Markets are the core allocative structures of contemporary capitalist economies. Organizations, such as companies, lobbying firms, political parties, trade unions, or state administrations, are the acting units that typically operate in markets, and they are the social structures that influence the construction and change of institutional settings and market formation. A cross-cutting theme of interest in the next few years will be how different forms of capitalism respond, or fail to respond, to the challenges of the green transition.

Moreover, a pivotal cross-cutting theme within our research framework is the investigation of social inequalities, scrutinizing their evolution and impact across diverse social groups distinguished by income, wealth, education, and occupation. Leveraging the distinctive analytical lenses of economic sociology and political economy, our approach delves into the intricate ways in which social stratification is both a product and a perpetuator of capitalist dynamics. By examining the interplay between institutional frameworks, market mechanisms, and organizational behaviors, we uncover the multifaceted processes through which inequalities are sustained and exacerbated in different capitalist contexts. This holistic perspective enables us to contribute novel insights into the mechanisms of inequality, offering a comprehensive understanding that bridges macro-level systemic structures with micro-level individual and group experiences in the capitalist socio-political landscape.