Steve Keen (s.keen@uws.edu.au)
Mon, 27 Dec 1999 22:59:54 +1100
I don't see any serious theoretical problem, and I agree that Marx probably
thought that way (Ricardo tended to lean a bit too heavily on the iron law
of wages though!).
The ratios s/v and skilled/unskilled productivity at any point of time
would be a product of previous history, and plotting the future course of
these variables an exercise in dynamics. There are plenty of clues pointing
this way in Marx's many comments that the value of labor power sets the
*minimum* wage, and that the presumption that the value of labor-power
determines the wage is an abstraction to be dropped at higher levels of
analysis.
I think the problem here lies more in economists' (of all persuasions!)
addiction to static analysis, in which there is always a determinate
solution, rather than a time-dependent one.
cheers,
Steve
At 04:50 1999-12-27 +0530, you wrote:
>
>
>Steve Keen wrote:
>
>> Ajit asks:
>>
>> >So, Steve! What is the quantitative solution to the problem? Have a happy
>> >millennium everybody! Cheers, ajit sinha
>> >
>>
>> The catch is, there is no quantitative solution! Or at least no ex-ante
>> formula. The value ("wage"/"cost of education") of skilled labor is
>> unrelated to its use-value (value-creating capacity), just as the value of
>> unskilled labor is unrelated to its use-value. Marx simply assumed a s/v
>> ratio for the latter (normally of 100%), and the same applies to skilled
>> labor.
>>
>> There are a few nuances of course--such as that skilled labor is more
>> likely to have market power and therefore to be able to get an
>> exchange-value (wage) which exceeds its value.
>
>____________
>
>I wonder what is the serious theoretical problem in accepting a long-term
>soci-historically determined wage differentials between what is considered
>unskiled work and various skilled works as the multiple factors? I have very
>little doubt that both Ricardo and Marx thought that this was a easy and good
>way of doing it. Anythoughts? Cheers, ajit sinha
>
>>
>>
>> Cheers,
>> Steve
>> Dr. Steve Keen
>> Senior Lecturer
>> Economics & Finance
>> University of Western Sydney Macarthur
>> Building 11 Room 30,
>> Goldsmith Avenue, Campbelltown
>> PO Box 555 Campbelltown NSW 2560
>> Australia
>> s.keen@uws.edu.au 61 2 4620-3016 Fax 61 2 4626-6683
>> Home 02 9558-8018 Mobile 0409 716 088
>> Home Page: http://bus.macarthur.uws.edu.au/steve-keen/
>> Workshop on Economic Dynamcs: http://bus.macarthur.uws.edu.au/WED
>
>
>
Dr. Steve Keen
Senior Lecturer
Economics & Finance
University of Western Sydney Macarthur
Building 11 Room 30,
Goldsmith Avenue, Campbelltown
PO Box 555 Campbelltown NSW 2560
Australia
s.keen@uws.edu.au 61 2 4620-3016 Fax 61 2 4626-6683
Home 02 9558-8018 Mobile 0409 716 088
Home Page: http://bus.macarthur.uws.edu.au/steve-keen/
Workshop on Economic Dynamcs: http://bus.macarthur.uws.edu.au/WED
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