9058009881

CHAPTF.R TTT

34

36230

We w 1 1 1 t.ry t. o    d e m o n a t. r a t. e    h e r e    t. h a t.    t. h 1 a argument Ir not

only 1nsuff1o1ent. ly    speolfled,    hut.    t.hat.    1t. oannot. stand any

relevant test nf 'realhi' , In t.he Hght. of how modern systems of prorinnt. 1 on and labo u r and 1 ahnnr market relat.lons a o t. u a 1 1 y work 1n 1 ndust.r 1 a 1 1 zed sod et i es. Rut. hefore do Ing so, not.ioe t.hat t.he argument, does not. say anyt.hlng, 1n It.self, about whet.her t.he system will have or not fuli employment. The reasonlng, In ot.her words , applles    only    to t.he ¹ transition'

among dlfferent.ly    p r o d u o 1.1 y e    (or    'eff Iclent ') t.eohniques.

Whet.her there will be fuli employment depends on ot.her t.hlngs, whtoh are not dlreot.ly nonsldered by t.he argument, but. t.hat we have already recalled In t.he prev1ous o h a p t. e r , and treat.ed at. lengt.h 1n nur 19 36 Report.: t.hat. 1s, 1t. will depend -at. least.    w 1 t.h 1 n a system ¹ cloned ' t.o International nompet.1t.1on-

on wbether money wages are set.' i n t.he •rlght* proportlon wlt.h t.he average prlce of oommod 11.1 es , 'g1ven' t.he prodnnt 1 v 1 ty . Therefore we oould have -aooordlng t.o t.bis argument- or have not., fuli employment wlt.h bot.h strat.egy 1 and st.rat.egy 2. The above perapentl ve, t.hat 1s subst.a nt. 1 a l 1 y shared by bot.h neo-sonet.ar lat. and neo-Keynes1an sohools of t.hought.striotly depends on t.he hypot.hesls of deoreaslng returns t.o soale, wh 1 oh Implles a model whloh makes t.he soale of t. h e system depend only on real wages:    t.he hlgher 1 s t.he average level of

oommodit.y prloes wlt.h respeot. t.o t.he average level of money wages, t.he hlgher would be t.he out.put and t.he employment..

Cons1der1ng t.he effeot.s of t.he 1nt.rodnct.1on of a morę eff Id ent teohniąne, we sald t.hat. t.he t.wo t.eohn1ques oould ooex1st. In so far as t.he workers employed wit.h t.he inferlor t.eohn1qne aooept.ed a wagę out. proportlonal t.o t.he produot. 1 v 1 ty dl f ferentlal among t.he oompet. Ing t.eohniqnes. Morę preolsely, 1t. oan be sald that. t.he t.wo, dlfferent.ly produot. 1ve f.echn1qnes oan ooex1st. 1f be twe en dlfferent.ly produot. 1ve firma (or seot.ors) t.here ex1st proportlonal average wagę dl f ferent lal s; whloh 1s an event. t.he ooourrenoe of whloh 1 a far frnm being unllkely In t.he real world. Not.ioe In fant., for example, t.hat t.he rhoioe among the t.eohn1ques would be balanoed also In t.he oase t.hat. t.he workers employed wlt.h t.he bet.ter t.eohn1que bad oht.alned a proportlonal Inorease In t.heir pays: what. mat.t.ers, In fant, 1s t.hat., 1f we oa 1 1    w(1) the wagę of the workers

employed wlt.h t.echn1que 1    ( wlt.h 1 1nd1oat.log t.eohn1qne 1,

t.eohn1que 2, t.eohn1que 3, et.o), and v(1) the produot i vi ty of a worker employed wlt.h t.eohn1qne i, the foli o w Ing oondl tion oould hołd:

o*w(1)/v(1)~x*    [5]

where x* la a oonstant. equal for eaoh of t.he t.eohn1ques 1, and t.hls resnlt oan be ensnred by any oomb1nat.1on of hlgher wages for the workers assoolat.ed wlt.h bet.t.er teohnl ques and lower wages for t.he workers assoolat.ed wlt.h worse t.eohniqnes.

What. t.he a b o v e oonslderat. łons make olear 1 s that the t.hesls t.hat. dlfferent.ly produot. 1ve t.eohn1qnes oan not. ooex1st. striotly depends on the hypot.hesls t.hat. one of the followlng a s s u m p 1.1 o n s hołd: