Polanyi (1980) has originated the concept of demmodification and argued that labour has to be treated by capitalism as produced for exchange though it was like a commodity just like other. In order to make system to survive, some measure of decommodification of labour is necessary in practice. Labour power requires non-commodified support systems so that it could be preserved and enhanced if not traded in labour market (Offe. 1984).
The work of Esping-Anderson has supported most currency to gain as a way of understanding modern welfare states. According to his view, decommodification occurs if a service is rendered as a matter of right and moreover a person can maintain lifestyle without depending on the market.
Several other authors also argued that decommodification can be better understood as the empowerment of the citizenry over the market forces. They stressed the relationship with citizenship. Esping-Anderson has used decommodification to exemplify important differences between corporatist, social democratic and liberal welfare states. Various criteria such as unemployment, pensions, sickness benefits etc. can be considered to decommodify labour power in different ways and to various extents.Decommodification process is also recognized as the primary objective of different social democratic activities. In his work, Andersen exemplifies that in countries having longer history of social democratic government; welfare states display a greater intensity of decommodification.
There were several reasons for struggle of democratic movements for decommodification. It was very tough to mobilize workers for solidarity actions when they were highly dependent on market. The process of decommodification during globalization was aimed to strengthen the workers and lowering the absolute power and authoritative approach of the employers. Therefore, decommodification concept was always been opposed by the employers (Espin-Aderson, 1999)