The Lump-of-Labor Fallacy

Pierre Lemieux

Chapter Chapter 5 in Who Needs Jobs?, 2014, pp 45-58 from Palgrave Macmillan

Abstract: Abstract rIf somebody gets a job, according to a certain argument, it means one fewer job available for others. If one additional worker is employed, another one must lose his job. If an older worker does not retire, one fewer job is available for the young. French socialist prime minister Pierre Mauroy put it clearly in his 1981 injunction: “When it is time to retire, leave the labor force in order to provide jobs for your sons and daughters ... release jobs so that everyone can have a job.” 1 There is a fixed quantity of jobs available, and who­ever takes one prevents others from getting it. A predeter­mined lump of labor is required to run the economy, and these jobs have to be shared. Hence, it is important to orga­nize this job sharing. Otherwise, some individuals who need jobs won’t have one.

Keywords: Labor Market; Gross Domestic Product; Marginal Product; Capital Good; British Civil Servant (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-35351-1_5

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DOI: 10.1057/9781137353511_5

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