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Marx on Absolute and Relative Wages and the Modern Theory of Distribution

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  • Enrico Sergio Levrero

Abstract

This paper aims at clarifying some aspects of Marx's analysis of the determinants of wages and of the peculiarity of labour as a commodity, focusing on three related issues. The first is that of Marx's notion of the subsistence (or natural) wage rate: the subsistence wage will be shown to stem, according to Marx, from socially determined conditions of reproduction of an efficient labouring class. The second issue refers to the distinction between the natural and the market wage rate that can be found in Marx, and his critique of Ricardo's analysis of the determinants of the price of labour. Here the ‘law of population peculiar to the capitalist mode of production’ (that is, Marx's industrial reserve army mechanism) will be considered both with respect to cyclical fluctuations of wages and to their trend over time. Moreover, a classification of the social and institutional factors affecting the average wage rate will be advanced. Finally, the last issue concerns Marx's analysis of the effects of technical progress on both absolute and relative wages (that is, the wage share). It will also be discussed by relating it back to the longstanding debate on the Marxian law of the falling rate of profit, and addressing some possible scenarios of the trend of wages and distribution.

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  • Enrico Sergio Levrero, 2013. "Marx on Absolute and Relative Wages and the Modern Theory of Distribution," Review of Political Economy, Taylor & Francis Journals, vol. 25(1), pages 91-116, January.
    • Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:91-116
    DOI: 10.1080/09538259.2013.737126
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    References listed on IDEAS

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    1. Antonella Stirati, 1994. "THE THEORY OF WAGES IN CLASSICAL ECONOmiCS," Books, Edward Elgar Publishing, number 417.
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    Cited by:

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    2. Ricardo Summa & Julia Braga, 2020. "Two routes back to the old Phillips curve: the amended mainstream model and the conflict augmented alternative," Bulletin of Political Economy, Bulletin of Political Economy, vol. 14(1), pages 81-115, June.
    3. Oberholzer, Basil, 2023. "Post-growth transition, working time reduction, and the question of profits," Ecological Economics, Elsevier, vol. 206(C).
    4. Lorenzo Di Domenico, 2021. "Multiplicity and not necessarily heterogeneity: implications for the long-run degree of capacity utilization," Working Papers PKWP2116, Post Keynesian Economics Society (PKES).
    5. Sujit Kumar De & Kousik Bhattacharya, 2022. "A Pollution Sensitive Marxian Production Inventory Model with Deterioration Under Fuzzy System," Journal of Optimization Theory and Applications, Springer, vol. 192(2), pages 598-627, February.
    6. Enrico Sergio Levrero, 2018. "The Classical Theory of Wages and its Interpretations: A Critique of the Canonical Classical Model," Bulletin of Political Economy, Bulletin of Political Economy, vol. 12(1-2), pages 55-76, June.
    7. Stefano Di Bucchianico & Federica Cappelli, 2021. "Exploring the theoretical link between profitability and luxury emissions," Working Papers PKWP2114, Post Keynesian Economics Society (PKES).

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