According to free market theories, we should all be selling our labor freelance.
This is incorrect. If the disutility to an employer of absorbing short term risk is lower than the disutility to the employee, it makes perfect sense. And similarly, if an employer has a comparative advantage over the employee for hustling, specialization makes sense.
There are also large tax incentives (most notably relating to medical spending) for full time employment.
"Free market theories" don't generally oppose risk mitigation strategies, specialization or exploiting economies of scale.
This is incorrect. If the disutility to an employer of absorbing short term risk is lower than the disutility to the employee, it makes perfect sense. And similarly, if an employer has a comparative advantage over the employee for hustling, specialization makes sense.
There are also large tax incentives (most notably relating to medical spending) for full time employment.
"Free market theories" don't generally oppose risk mitigation strategies, specialization or exploiting economies of scale.