Rate of exploitation
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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 services to exert a downward pressure on wages while productivity per worker rises, thus increasing the rate of surplus value extraction.[1]
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See also[edit]
- Exploitation of labour
- Marginal product of labor
- Marxian economics
- Rate of profit
- Surplus value
- Technological unemployment
References[edit]
- ^ 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.
