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The nature of labour and productivity has been understood by classical economists for hundreds of years now. You are not paid in proportion to the excess value
by reedf1 4y ago
The nature of labour and productivity has been understood by classical economists for hundreds of years now. You are not paid in proportion to the excess value you produce, or else you would be an owner of the company.
- cuteboy19 4y agoMany programmers are owners in their companies. Unfortunately for them, this is not always a good thing
- nequo 4y agoThen what are you paid in proportion to?
- reedf1 4y agoThere are entire schools of economic thought about that question. In the classical view, it's your labour power. In the neoclassical view, it's the scarcity of the labour you produce.
- nequo 4y agoI am asking because in a simple model of perfect competition, you are paid your marginal product of labor, i.e., your productivity. Spence's signalling model of education is also based on the idea that people are compensated for their productivity. Even in efficiency-wage models, the equilibrium wage is set at the marginal product of labor.