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There is certainly technology that substitutes many cheap (low-skill) workers for a few individually more expensive ones. The value to the business of the labo
by YokoZar 11y ago
There is certainly technology that substitutes many cheap (low-skill) workers for a few individually more expensive ones. The value to the business of the labor would increase, and on average "labor value" would be higher, but it would be different people's labor having more value.
At the same time, all else equal this would reduce the relative demand for the low-skilled worker, leading to a fall in the competitive wage they could get.
So, yes, "technology" should increase productivity and thus mean "labor value", but individuals can definitely lose out.
- dredmorbius 11y agoNote what you just referenced. You're replacing low cost labour for high cost labour, but increasing the value of that labour. Cost is what you give up for something. Value is what you get for it. Price is what you pay on the market. They're three distinct concepts. Much economic confusion results from it. (And yes, there are some who describe "value" as "market value", which I refer to as price. See though "economic value.)