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Worker surveillance capital, labour share and productivity

Surveillance des travailleurs, partage de valeur ajoutée et productivité

Philippe Askenazy

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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 * (search for similar items in EconPapers)
Date: 2022-01-01
New Economics Papers: this item is included in nep-eff and nep-hme
Note: View the original document on HAL open archive server: https://hal.science/hal-02877703
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Published in Oxford Economic Papers, 2022, 74 (1), pp.85-93

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