Economics Dictionary of ArgumentsHome
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| Marginal Product of Labour: The Marginal Product of Labour (MPL) is the additional output produced when one more unit of labor is employed, holding other inputs constant. It reflects labor productivity and helps determine wages. MPL typically decreases as more workers are added due to the law of diminishing returns. See also Marginal product, Marginal productivity theory, Labour, Marginalism, Neoclassial economics._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Dennis H. Robertson on Marginal Product of Labour - Dictionary of Arguments
Harcourt I 106 Marginal Product of Labour/Economic theories/Harcourt: [A one-commodity model] allows both a complete bypass of the distinction between short run and long run, as raised, for example, by D. H. Robertson [1949](1) in 'Wage Grumbles', and the merging into one of the process of investment and the use of capital in production, see Robinson [1970a](2), pp. 311-13. >Economic models, >One-commodity model. Harcourt: It could be noted here that, for exactly the same reasons as Joan Robinson's, Hicks [1932](3), p. 20, rejected the notion of a short-run marginal product of labour which was equal to the real wage, but went on to argue for a full long-run equilibrium equality for reasons that are vulnerable to criticisms that stem from both Salter's analysis and the points made above. RobertsonVsMarshall: D. H. Robertson's 'grumbles' related to the question: What in fact is held constant when employment is changed in Marshall's description of the marginal product of labour and its relationship to the real wage? Is it a mysterious general concept of capital, so that nine shovels become ten slightly inferior ones, or is it the existing equipment, in which case what does the tenth man work with? Marshall: In the long run, Marshall supposed that suitable adjustments were made so that the wage was equal to the net marginal product of labour. >A. Marshall. Harcourt: This, however, introduces a joint production puzzle and leaves unexplained the level of the normal rate of profits that is earned on the adjusted stock of capital. Moreover, long-period comparisons are only comparisons since each point is an equilibrium position with its own (realized) past, as far as the values of r and w are concerned, and its own confidently expected future. To attempt a transition from one point to another could both rupture one equilibrium and not allow the economy to enter another. Harcourt I 107 Time may only run at right angles, as it were, through each point. >One-commodity Model. 1. Robertson, D. H. [1949] 'Wage Grumbles', Readings in the Theory of Income Distribution (American Economic Association), pp. 221-36. 2. Robinson, Joan, [1970b] 'Review of C. E. Ferguson, The Neoclassical Theory of Production and Distribution, 1969', Economic Journal, LXXX, pp. 336-9. 3. Hicks, J. R. [1932] The Theory of Wages (London: Macmillan)._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. "Vs" indicates differences in content, not necessarily the chronological progression of a controversy. If a German edition is specified, the page numbers refer to this edition. |
Robertson I Dennis H. Robertson Lectures on Economic Principles, Three Volumes London 1957 Harcourt I Geoffrey C. Harcourt Some Cambridge controversies in the theory of capital Cambridge 1972 |
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