The limits of workers’ share in profits
Abstract
The limits of workers’ share in profits. This article argues that workers´ share in profits are actually a share in extra surplus value obtained by means of more intensified labor. Cost reductions obtained by means of more intensified lean production methods cause wages to represent a smaller fraction of the product of a working day when measured at market value. The increased market rate of surplus value is the basis for workers´ shares in profits. However, as competition continuously levels out such advantages, the share in profits becomes dependent on a continuous strive to reducing costs and intensifying labor.
JEL Classification: J33.
Keywords: Labor intensity extra surplus value participation in profits