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Power, productivity and profits

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Author Info
Peter Skott () (University of Massachusetts Amherst)
Frederick Guy () (Birkbeck College)

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Abstract

New information and communication technologies, we argue, have been 'power-biased': in many industries they have allowed firms to monitor workers more closely, thus reducing the power of these workers. An efficiency wage model shows that 'power-biased technical change' in this sense may generate rising inequality accompanied by an increase in both unemployment and work intensity. JEL Categories: J31, O33

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Paper provided by University of Massachusetts Amherst, Department of Economics in its series Working Papers with number 2007-02.

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Date of creation: Jan 2007
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Handle: RePEc:ums:papers:2007-02

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Keywords: power-biased technical change; efficiency wages; inequality; work intensity.;

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  1. Donald W. Katzner & Peter Skott, 2004. "Economic Explanation, Ordinality and the Adequacy of Analytic Specification," Working Papers 2004-02, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
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  2. Larry W. Hunter & John J. Lafkas, 2003. "Opening the box: Information technology, work practices, and wages," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 56(2), pages 224-243, January.
  3. Skott, P., 1989. "Imperfect Competition And The Theory Of The Falling Rate Of Profit," Economics Working Papers 1989-18, School of Economics and Management, University of Aarhus.
  4. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March. [Downloadable!] (restricted)
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  5. Green, Francis & McIntosh, Steven, 2001. "The intensification of work in Europe," Labour Economics, Elsevier, vol. 8(2), pages 291-308, May. [Downloadable!] (restricted)
  6. Frederick Guy & Peter Skottz, 2005. "Power-Biased Technological Change and the Rise in Earnings Inequality," Working Papers 06, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
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  7. Francis Green, 2002. "Why Has Work Effort Become More Intense?," Studies in Economics 0207, Department of Economics, University of Kent. [Downloadable!]
  8. Matias Ramirez & Frederick Guy & David Beale, 2007. "Contested Resources: Unions, Employers, and the Adoption of New Work Practices in US and UK Telecommunications," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 45(3), pages 495-517, 09. [Downloadable!] (restricted)
  9. Gintis, Herbert & Ishikawa, Tsuneo, 1987. "Wages, work intensity, and unemployment," Journal of the Japanese and International Economies, Elsevier, vol. 1(2), pages 195-228, June. [Downloadable!] (restricted)
  10. Francis Green & Steven McIntosh, 1998. "Union power, cost of job loss, and workers' effort," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 51(3), pages 363-383, April.
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