The model of labor market policy is closely related to the form and structure of the socio-economic model operating in a given country at a given time. It has undergone numer- ous transformations in the course of the development of capitalism. Its doctrine mainly origi- nated from the trends of classical, and then neo-classical economics. In the 20th century, the US market economy was frequently influenced by interventionist concepts, though. Owing to the New Deal and Keynesian policy, the US model of a labor mar- ket has become more redistributive, less flexible and subject to various forms of state influ- ence. Interventionist policies implemented during World War II and over the following twenty years led to ‘full employment’ accompanied by the curbing of income disparities in so- ciety. The worsened situation of the labor market during the period of stagflation of the 1970s re- sulted in the victory of a fiscal neo-conservatist concept, represented by the Republicans with Ronald Reagan. The years of the Reagan administration marked the restoration of liberal solutions in labor market policy. Reaganomics limited workers’ rights, improving the situation of employers and significantly reducing labor costs. These changes stabilized the situation in terms of the balance between the supply and demand for labor, simultaneously strongly increasing the in- come polarization of US society and negatively affecting employment standards.
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