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Worker surveillance capital, labour share, and productivity
[Workplace surveillance: an overview]

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  • Philippe Askenazy

Abstract

This paper proposes a basic model with two types of capital: productive capital directly involved in the production process and capital devoted to monitoring workers. Surveillance capital intensifies workers’ job strain, while wage recognition encourages their engagement. Firms face a double trade-off between the two types of capital, and between incentives and labour costs. Under simple assumptions, up to a certain threshold, technological innovation improves productivity, wages, and profits at the same pace, leading to a flat labour share in income. Then, once the threshold is breached, profit-maximization initiates a transfer from productive capital to monitoring tools. This progressive shift generates a decline in the labour share and a productivity slowdown, despite greater job strain. The model suggests the possibility of a third phase in which productivity recovers.

Suggested Citation

  • Philippe Askenazy, 2022. "Worker surveillance capital, labour share, and productivity [Workplace surveillance: an overview]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 85-93.
  • Handle: RePEc:oup:oxecpp:v:74:y:2022:i:1:p:85-93.
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    More about this item

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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