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The limits of workers’ share in profits

Author

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  • Francisco Paulo Cipolla

Abstract

The limits of workers’ share in profits. This article argues that workers´ share in profits are actually a share in extra surplus value obtained by means of more intensified labor. Cost reductions obtained by means of more intensified lean production methods cause wages to represent a smaller fraction of the product of a working day when measured at market value. The increased market rate of surplus value is the basis for workers´ shares in profits. However, as competition continuously levels out such advantages, the share in profits becomes dependent on a continuous strive to reducing costs and intensifying labor. JEL Classification: J33.

Suggested Citation

  • Francisco Paulo Cipolla, 2007. "The limits of workers’ share in profits," Brazilian Journal of Political Economy, Center of Political Economy, vol. 27(4), pages 616-632.
    • Handle: RePEc:ekm:repojs:v:27:y:2007:i:4:p:616-632:id:583
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/583/581
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    More about this item

    Keywords

    Labor intensity; extra surplus value; participation in profits;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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