Radical Economics General Editor: SAM AARONOVITCH Debates between economists are not just technical arguments amongst practitioners but often reflect philosophical and ideologi cal positions which are not always made explicit. Discontent grew with the prevailing economic orthodoxy as the long period of economic expansion in the advanced capitalist economies came to an end in the 1970s; disenchantment was expressed in open discussion about the 'crisis' in economics and in the rise of various kinds of radical economic theory, often using the general title of 'political economy'. Many economists have looked for a more fruitful point of departure in the ideas of Marx and the classical economists and also in such contemporary economists as Kalecki and Sraffa. Although it is possible to identify a broad radical stream, it does not mean that there are no significant controversies within this radical approach and, indeed, it would be unhealthy if this were not the case. Can radical economic theory interpret the world better than the current orthodoxy which it challenges? And can it show also how to change it? This is a challenge which this series proposes to take up, adding to work already being done. Each book will be a useful contribution to its particular field and should become a text around which the study of economics takes place. Radical Economics Published Amit Bhaduri, Macroeconomics Michael Bleaney, The Rise and Fall of Keynesian Economics Keith Cowling, Monopoly Capitalism Paul Hare, Planning the British Economy Michael Howard, Profits in Economic Theory Antal Matyas, History of Modern Non-Marxian Economics David Purdy, Social Power and the Labour Market Malcolm C. Sawyer, The Economics of Michal Kalecki Forthcoming Terry Byres, The Political Economy of Poor Nations Matthew Edel, Urban Economics Michael Howard and John King, A History of Marxian Economics (2 volumes) John E. Woods, The Economics of Piero Sraffa: An Introduction Series Standing Order If you would like to receive future titles in this series as they are published, you can make use of our standing order facility. To place a standing order please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address and the name of the series. Please state with which title you wish to begin your standing order. (If you live outside the United· Kingdom we may not have the rights for your area, in which case we will forward your order to the publisher concerned.) Customer Services Department, Macmillan Distribution Ltd Houndmills, Basingstoke, Hampshire, RG21 2XS, England. Social Power and the Labour Market A Radical Approach to Labour Economics DAVID PURDY Lecturer in Economics University of Manchester M MACMILLAN EDUCATION © David Purdy 1988 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright Act 1956 (as amended), or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 33-4 Alfred Place, London WCIE 7DP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 1988 Published by MACMILLAN EDUCATION LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world Typeset by Wessex Typesetters (Division of The Eastern Press Ltd) Frome, Somerset British Library Cataloguing in Publication Data Purdy, David Social power and the labour market: a radical approach to labour economics. (Radical economics). 1. Labour market. Econometric models I. Title II. Series 331.12'0724 ISBN 978-0-333-29180-1 ISBN 978-1-349-19545-9 (eBook) DOI 10.1007/978-1-349-19545-9 In memory of Judith Gray Contents Acknowledgements x Part One: The Theory of the Labour Market 1 Two Paradigms: Exchange and Reproduction 3 1 Paradigms and models 3 2 The exchange paradigm 4 3 Blind spots and distortions 12 4 The reproduction paradigm 16 5 The plan of this book 20 2 The Concept of Power 24 1 Preliminary definitions 24 2 The three dimensions of power 26 3 Issues, interests, decisions and non-decisions 30 3 Power in the Exchange Paradigm 36 1 Introduction 36 2 Power as capacity and power as relationship 38 3 The identification and measurement of power 41 4 Power forces as supplementing market outcomes 45 5 Exchange models and the three dimensions of power 51 6 The central claim of the exchange paradigm 56 4 Power in the Reproduction Paradigm 59 1 Introduction 59 2 The labour process and the critique of the exchange paradigm's central claim 60 3 The 'social bases of obedience' 63 vii viii Contents 4 The reproduction cost theory of wages 69 5 The moral and historical element 74 6 Systemic power and the moral and historical element 79 5 The Peculiarities of Labour Power 85 1 Introduction 85 2 The inalienable character of labour power 86 3 The reproduction of labour power 87 4 Classical Marxism and Labour's existential problem 93 5 Trade unions and the logic of collective action 102 6 Labour's Goals and the Reproduction of Unequal Power 111 1 Introduction 111 2 A choice theoretic model of goal selection 113 3 Systemic goal containment and countervailing pressure 122 4 The transformatory project 132 Part Two: The Future of the Labour Market 7 Capitalism, Gender and Toil 145 1 Introduction 145 2 Capitalism and working time 146 3 'Part-time' work and reduced working time 150 4 Gender and the sexual division of labour 155 5 The components of toil 160 8 Reduced Working Time and the Redivision of Labour 167 1 Introduction 167 2 A modest proposal for reducing working time: sabbatical and caring leave 168 3 The obstacles to a shorter working week 173 4 The shorter working week: a taxonomy of losers and the agenda for a winning strategy 176 9 Basic Income, Social Security and the Labour Market 193 1 Introduction 193 2 The meaning of basic income 193 3 The secular preconditions for basic income 198 4 The dual crisis of the labour market and social security system 201 Contents ix 10 Basic Income and the Transformation of Work 219 1 Introduction 219 2 Overcoming the defects of the present social 220 security system 3 Reducing working time and redistributing 223 employment 4 Deconstructing employment status 229 5 Abating toil 235 11 Basic Income: Incentives, Ethics and Political Strategy 241 1 Introduction 241 2 Economic incentives 242 3 Ethical objections to basic income 246 4 The logic of citizenship 251 5 The political feasibility of a basic income strategy 254 6 Basic income and the labour movement 257 7 Sectionalism, trade unions and incomes policy 260 References 268 Index 275 Acknowledgements Among the people whose ideas and suggestions I have borrowed, adapted or resisted during the long gestation of this book I should particularly like to thank Beatrix Campbell, Pat Devine, Ann Long, Barbara MacLennan, Ian Steedman, Philippe Van Parijs, and the series editor Sam Aaronovitch. I am also grateful to the members of Manchester University's Economics Research Seminar for their helpful and sometimes provocative comments on draft versions of several chapters; to the members of the Basic Income Research Group; and to the participants at the first International Conference on Basic Income organised by the Collectif Charles Fourier at Louvain-Ia-Neuve, Belgium, in September 1986. lowe a special debt of gratitude to my friend and former colleague, Claudette Williams, who toiled with enthusiasm and patience to produce a first-class typescript. For the content of the book - errors, warts and all-I bear sole responsibility. David Purdy