Worker surveillance capital, labour share and productivity

Philippe Askenazy

No 2004, CEPREMAP Working Papers (Docweb) from CEPREMAP

Abstract: In this paper, we propose 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 and wages recover.

Keywords: declining labour share; productivity slowdown; effort-reward imbalances; surveillance; O33; O40; J20; J30 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2020-07
New Economics Papers: this item is included in nep-eff
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http://www.cepremap.fr/depot/docweb/docweb2004.pdf (application/pdf)

Related works:
Journal Article: Worker surveillance capital, labour share, and productivity (2022)
Working Paper: Worker surveillance capital, labour share and productivity (2022)
Working Paper: Worker Surveillance Capital, Labour Share and Productivity (2020)
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