Rate of exploitation

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

In Marxian economics, the rate of exploitation is the divergence between labor productivity and the wage rate. In Marx's analysis of capitalist development, technological progress yields a higher ratio of constant capital (non-labor inputs) to variable capital (labor inputs), which lowers the demand for labor relative to capital inputs. This causes unemployment that serves to exert a downward pressure on wages while productivity per worker rises, thus increasing the rate of surplus value extraction.[1]

See also


  1. ^ Grossmann, Volker (January 26, 2001). Inequality, Economic Growth, and Technological Change: New Aspects in an Old Debate. Physica. p. 15. ISBN 978-3790813647. As labor productivity rises but wages remain fixed (Marx called the gap between labor productivity and the wage rate the ‘rate of exploitation’), the ‘surplus value’ increases.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Rate_of_exploitation&oldid=811094502"
This content was retrieved from Wikipedia : http://en.wikipedia.org/wiki/Rate_of_exploitation
This page is based on the copyrighted Wikipedia article "Rate of exploitation"; it is used under the Creative Commons Attribution-ShareAlike 3.0 Unported License (CC-BY-SA). You may redistribute it, verbatim or modified, providing that you comply with the terms of the CC-BY-SA