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Wage labour (also wage labor in
American English American English, sometimes called United States English or U.S. English, is the set of variety (linguistics), varieties of the English language native to the United States. English is the Languages of the United States, most widely spoken lan ...
), usually referred to as paid work, paid employment, or paid labour, refers to the socioeconomic relationship between a
worker The working class (or labouring class) comprises those engaged in manual labour, manual-labour occupations or industrial work, who are remunerated via wage, waged or salary, salaried contracts. Working-class occupations (see also "Designation ...
and an
employer Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...
in which the worker sells their labour power under a formal or informal
employment contract An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". It has arisen out of the old ...
. These transactions usually occur in a labour market where wages or salaries are market-determined.
In exchange for the money paid as wages (usual for short-term work-contracts) or salaries (in permanent employment contracts), the work product generally becomes the undifferentiated property of the employer. A wage labourer is a person whose primary means of income is from the selling of their labour in this way.


Characteristics

In modern mixed economies such as those of the OECD countries, it is currently the most common form of work arrangement. Although most labour is organised as per this structure, the wage work arrangements of
CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
s, professional employees, and professional contract workers are sometimes conflated with class assignments, so that "wage labour" is considered to apply only to unskilled, semi-skilled or manual labour.


Types

The most common form of wage labour currently is ordinary direct, or "full-time". This is employment in which a free worker sells their labour for an indeterminate time (from a few years to the entire career of the worker), in return for a money-wage or salary and a continuing relationship with the employer which it does not in general offer contractors or other irregular staff. However, wage labour takes many other forms, and explicit as opposed to implicit (i.e. conditioned by local labour and tax law) contracts are not uncommon. Economic history shows a great variety of ways, in which labour is traded and exchanged. The differences show up in the form of: * Employment status – a worker could be employed full-time, part-time, or on a casual basis. They could be employed for example temporarily for a specific project only, or on a permanent basis. Part-time wage labour could combine with part-time self-employment. The worker could be employed also as an apprentice. * Civil (legal) status – the worker could for example be a free citizen, an indentured labourer, the subject of
forced labour Forced labour, or unfree labour, is any work relation, especially in modern or early modern history, in which people are employed against their will with the threat of destitution, detention, violence including death, or other forms of ex ...
(including some prison or army labour); a worker could be assigned by the political authorities to a task, they could be a semi-slave or a
serf Serfdom was the status of many peasants under feudalism, specifically relating to manorialism, and similar systems. It was a condition of debt bondage and indentured servitude with similarities to and differences from slavery, which developed ...
bound to the land who is hired out part of the time. So the labour might be performed on a more or less voluntary basis, or on a more or less involuntary basis, in which there are many gradations. * Method of payment ( remuneration or compensation) – The work done could be paid "in cash" (a money-wage) or "in kind" (through receiving goods and/or services), or in the form of " piece rates" where the wage is directly dependent on how much the worker produces. In some cases, the worker might be paid in the form of credit used to buy goods and services, or in the form of stock options or
shares In financial markets, a share is a unit of equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Share capital refers to all of the shares of an ...
in an enterprise. * Method of hiring – the worker might engage in a labour-contract on their own initiative, or they might hire out their labour as part of a group. But they may also hire out their labour via an intermediary (such as an employment agency) to a third party. In this case, they are paid by the intermediary, but work for a third party which pays the intermediary. In some cases, labour is subcontracted several times, with several intermediaries. Another possibility is that the worker is assigned or posted to a job by a political authority, or that an agency hires out a worker to an enterprise ''together'' with means of production.


Criticisms

Wage labour has long been compared to slavery. As a result, the term " wage slavery" is often utilised as a pejorative for wage labour. Similarly, advocates of slavery looked upon the "comparative evils of Slave Society and of Free Society, of slavery to human Masters and slavery to Capital,". and proceeded to argue that wage slavery was actually ''worse'' than chattel slavery. Slavery apologists like George Fitzhugh contended that workers only accepted wage labour with the passage of time, as they became "familiarized and inattentive to the infected social atmosphere they continually inhale . According to Noam Chomsky, analysis of the psychological implications of wage slavery goes back to the
Enlightenment Enlightenment or enlighten may refer to: Age of Enlightenment * Age of Enlightenment, period in Western intellectual history from the late 17th to late 18th century, centered in France but also encompassing (alphabetically by country or culture): ...
era. In his 1791 book ''On the Limits of State Action'', classical liberal thinker Wilhelm von Humboldt explained how "whatever does not spring from a man's free choice, or is only the result of instruction and guidance, does not enter into his very nature; he does not perform it with truly human energies, but merely with mechanical exactness" and so when the labourer works under external control, "we may admire what he does, but we despise what he is." Both the
Milgram Milgram is a surname derived from the Yiddish word for pomegranate (מילגרוים, Milgroim) and may refer to: * Arthur Milgram (1912–1961), American mathematician ** R. James Milgram (born 1939), American mathematician, son of Arthur * ...
and
Stanford experiment The Stanford prison experiment (SPE) was a psychological experiment conducted in the summer of 1971. It was a two-week simulation of a prison environment that examined the effects of situational variables on participants' reactions and behav ...
s have been found useful in the psychological study of wage-based workplace relations. Additionally, as per anthropologist
David Graeber David Rolfe Graeber (; February 12, 1961September 2, 2020) was an American anthropologist and anarchist activist. His influential work in economic anthropology, particularly his books '' Debt: The First 5,000 Years'' (2011) and ''Bullshit Jobs ...
, the earliest wage labour contracts we know about were in fact contracts for the rental of chattel slaves (usually the owner would receive a share of the money, and the slave, another, with which to maintain their living expenses.) Such arrangements, according to Graeber, were quite common in New World slavery as well, whether in the United States or Brazil. C. L. R. James argued in '' The Black Jacobins'' that most of the techniques of human organisation employed on factory workers during the industrial revolution were first developed on slave plantations. For Marxists, labour-as-commodity, which is how they regard wage labour, provides a fundamental point of attack against capitalism. "It can be persuasively argued," noted one concerned philosopher, "that the conception of the worker's labour as a commodity confirms Marx's stigmatisation of the wage system of private capitalism as 'wage-slavery;' that is, as an instrument of the capitalist's for reducing the worker's condition to that of a slave, if not below it." That this objection is fundamental follows immediately from Marx's conclusion that wage labour is the very foundation of capitalism: "Without a ''class dependent on wages'', the moment individuals confront each other as free persons, there can be no production of
surplus value In Marxian economics, surplus value is the difference between the amount raised through a sale of a product and the amount it cost to the owner of that product to manufacture it: i.e. the amount raised through sale of the product minus the cost ...
; without the production of surplus-value there can be no capitalist production, and hence no capital and no capitalist!". Emphasis in the original.
See also p. 716: " e capitalist produces nd reproducesthe worker as a wage-labourer. This incessant reproduction, this perpetuation of the worker, is the absolutely necessary condition for capitalist production."


See also

* Capitalism * Capitalist mode of production (Marxist theory) *
Child labour Child labour refers to the exploitation of children through any form of work that deprives children of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially and morally harmful. Such e ...
* Critique of work * Eight-hour day * Four-day workweek *
Full employment Full employment is a situation in which there is no cyclical or unemployment#Cyclical unemployment, deficient-demand unemployment. Full employment does not entail the disappearance of all unemployment, as other kinds of unemployment, namely Structu ...
* Immiseration thesis * Labour (economics) * Labour theory of value * Marxian critique of political economy * Marx's theory of alienation *
Rate of exploitation In Marxian economics, the rate of exploitation is the ratio of the total amount of unpaid labor done (surplus-value) to the total amount of wages paid (the value of labour power). The rate of exploitation is often also called the rate of surplus ...
* Reserve army of labour *
Surplus value In Marxian economics, surplus value is the difference between the amount raised through a sale of a product and the amount it cost to the owner of that product to manufacture it: i.e. the amount raised through sale of the product minus the cost ...
* Six-hour day * Sweatshop * Unfree labour * Wage slavery * Working class * Working poor


Footnotes


Bibliography

; Articles * * * * * * * * ; Books * * * * Krahn, Harvey J., and Graham S. Lowe (1993). ''Work, Industry, and Canadian Society''. Second ed. Scarborough, Ont.: Nelson Canada. xii, 430 p. . * * * * *


External links

*
LaborFair Resources
– link to Fair Labor Practices {{Authority control Labor relations Capitalism Marxian economics Socialism