(OPE-L) measuring exploitation

From: gerald_a_levy (gerald_a_levy@MSN.COM)
Date: Wed Oct 01 2003 - 19:37:18 EDT

A hypothetical question:  

a)  Suppose there are two firms in the same
branch of production but these two firms are in different
regions (or countries).  

b) Suppose that the workers in those 2 firms work the same 
working hours,  work to the same degree of labor intensity,
have the same skills,  and that the total quantity of output 
produced in each firm is the same.  Assume that there is a
uniform price for a unit of output.  

c)  In the first firm (A)  there are less workers (La) because
output/worker/hr. is greater  but  La receive higher wages.
In the second firm (B) there are more workers (Lb>La) and 
the output/worker/hr is lower but these workers (Lb) are
paid lower wages than the other group (La).  Suppose further
that output/worker/hr is 100% greater in A than in B and that
wages for Lb are 100% lower than those received by La.


* Which is the more exploited --   La or Lb?    

In solidarity, Jerry

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