Intensification of Labor and the Rate and Form of Exploitation

Does the intensification of labor increase the rate of exploitation? Does it produce absolute surplus value or relative surplus value? This article develops a framework to answer these questions by incorporating intensity of labor in the widely used linear model of production, both in its one- and two-department forms. We show that (a) an intensification of labor always leads to an increase in the rate of exploitation, and (b) the increase in the rate of exploitation takes the form of the production of absolute surplus value in all realistic situations. We also highlight, in the case of any model with more than one industry or sector, an interesting difference in short- and long-run changes in the rate and form of surplus value.JEL Classification: B51, C02