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The Evolution of Modern Capitalism: A Study of Machine Production

John Atkinson Hobson · 1902 (composition; 1902 publication in the catalog record)

passage 212 of 270 · CHAPTER I. > CHAPTER XII. (17/23)

↪ you wandered here via “real wage measurement” — the connecting lines are tinted below

or able to attain the small skill required. In men's industries, save in the most unskilled, there is not a constant over-supply of labour, in most women's industries there is.

Sec. 13. Comparing women's wages with men's we are now able to sum up as follows:--The smaller productivity of woman's work makes the possible maximum wage lower; the smaller wants of women make the possible minimum wage lower; the greater weakness of women as competitors, arising chiefly from excess of supply of labour, makes their actual wage approximate to the lower rather than to the higher level.

In regarding productivity as a measure of maximum wage it is necessary to guard carefully against one misapprehension. So far as we are comparing the wage of men and women engaged upon the same work, the smaller wages of the latter may easily be seen to have some relation to the smaller product of their labour. But when productivity is expressed in terms of the selling value of the work no such measurement is open to us. We are thus thrown back on market value and are told that the reason women get so little is that what they make fetches so low a price. But the circularity of this argument will appear on revising the question and asking, "Why do women's products sell so cheap?" the obvious answer being, "Because the cost of labour in them is so little,"--i.e., because women receive low wages. But if we refuse to take selling prices as the measure of productivity, what measure have we? No accurate measure of effort, skill, or efficiency is open if we refuse the scale of the market itself. Yet if we consider the conditions of wages and prices in such "sweated" trades as shirt-making, we cannot but conclude that the consumer gets the advantage of the "sweating"; that is to say, a certain portion of the productivity of the workers passes to the consumer through the agency of low prices. That which might have gone to the shirt-makers in decent wages has gone to the purchaser. This criticism of course posits a measurement of productivity at variance with that afforded by competition, or, more strictly speaking, it discounts the abnormal terms of the competition in the sweated industry. If we say that 1s. 11-1/2d. as the retail price of a shirt is a "sweating" or unfair price, we mean that the skill and effort embodied in this product would, if there were absolute equality of competition and absolute fluidity of labour, be measured at say 3s. It is true that no such measurement is open to us, and all such estimates are guesswork. But the idea which underlies the sentiment against "sweating" is a true one, although it has no exact practical embodiment so long as our only meaning of "value" is value in exchange at present competitive rates. It is therefore not inaccurate to represent productivity as forming the maximum wage, though we may have no exact measure of productivity at hand. The fact that any increase in productivity of labour is liable under certain circumstances of competition to pass away entirely to the consumer, is no reason for denying that an increase of productivity has taken place which might under other circumstances of competition have gone to the producer as higher wages. Though productivity as a measure of maximum wages is more or less of an unknown quantity, it is none the less true that as this "unknown" fluctuates so the possibility of high wages fluctuates.

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The Evolution of Modern Capitalism: A Study of Machine Production · John Atkinson Hobson · 1902