Naoki Yoshihara , Hitotsubashi University, Tokyo Roberto Veneziani , Queen Mary, University of London
June 1, 2013
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This paper analyses the theoretical issues related to the measurement of labour content in the context of general technologies with heterogeneous labour. A novel axiomatic framework is used in order to formulate the key properties of the notion of labour content and analyse its theoretical foundations. Then, a simple measure of labour content is uniquely characterised, which is consistent with common practice in input-output analysis and with a number of recent approaches in value theory.
J.E.L classification codes: D57, J24, O33, D46
Keywords:Labour content, Labour productivity, Technical change, Axiomatic analysis