Labor market deregulation has been at the core of the changes in the political economy during the last decades. The pervasive neoliberal wisdom has depoliticized the nature and effects of this process, a bias that has also affected the scholarship, which often overlooks its power dimension. This article aims to explore the role of power in the labor market to offer some theoretical insights for empirical research and public debate. Departing from the worker–employer “contested exchange” at the workplace, the article pivots on the concept of “decommodification” to grasp the institutional arrangements that shape this relationship at the institutional level of power. Furthermore, the article addresses the symbolic dimension of power and how epistemic reflexivity enables us to examine whether social research ideologically depicts or conceals the role of power in the study of labor relations, as illustrated by two subjects in vogue: the insiders–outsiders divide and the activation policy. The article concludes with a discussion of the normative implications of the preceding argument about freedom as nondomination for workers.
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