[OPE-L:1981] Re: Re: Re: Re: Re: Value Form (OPE-L 1972)

Steve Keen (s.keen@uws.edu.au)
Mon, 27 Dec 1999 08:59:46 +1100

Ajit asks:

>So, Steve! What is the quantitative solution to the problem? Have a happy
>millennium everybody! Cheers, ajit sinha

The catch is, there is no quantitative solution! Or at least no ex-ante
formula. The value ("wage"/"cost of education") of skilled labor is
unrelated to its use-value (value-creating capacity), just as the value of
unskilled labor is unrelated to its use-value. Marx simply assumed a s/v
ratio for the latter (normally of 100%), and the same applies to skilled

There are a few nuances of course--such as that skilled labor is more
likely to have market power and therefore to be able to get an
exchange-value (wage) which exceeds its value.

Dr. Steve Keen
Senior Lecturer
Economics & Finance
University of Western Sydney Macarthur
Building 11 Room 30,
Goldsmith Avenue, Campbelltown
PO Box 555 Campbelltown NSW 2560
s.keen@uws.edu.au 61 2 4620-3016 Fax 61 2 4626-6683
Home 02 9558-8018 Mobile 0409 716 088
Home Page: http://bus.macarthur.uws.edu.au/steve-keen/
Workshop on Economic Dynamcs: http://bus.macarthur.uws.edu.au/WED

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