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On Economic Behavior of Workers

In: The Quality of Society, Volume II

Author

Listed:
  • Adolfo Figueroa

    (Pontificia Universidad Católica del Perú)

Abstract

In capitalist societies, workers play several roles, as laborers, consumers, savers, and citizens. What are the main drives underlying workers behavior? Does the behavior reflect autonomy of drives? The unified theory of capitalism has been able to explain these roles, taken separately and taken jointly: Workers behavior are shaped by the context of power relations. This essay seeks to elaborate further on the behavior of workers, now taken jointly. A theoretical model is developed, which assumes that the major goal of workers is to attain the highest relative living standard, relative to the consumption frontier of society. This goal determines saving and tax payment behavior. Power elites, on the other hand, seek pro-growth policies and seek to control and change workers consumption behavior. Facts tend to be consistent with the predictions of the model. The model is able to explain workers consumerism and illegal behavior, and the consequent higher vulnerability of the living standards attained. Their attempt to attain higher relative living standards does not lead to social progress.

Suggested Citation

  • Adolfo Figueroa, 2021. "On Economic Behavior of Workers," Springer Books, in: The Quality of Society, Volume II, chapter 0, pages 89-110, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-79565-8_5
    DOI: 10.1007/978-3-030-79565-8_5
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