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Equation 3 · What the Machine Breakers Actually Wanted

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Y/LY/L

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YY

Symbol Y

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LL

Symbol L

L is a part of this expression. Its role is fixed by the surrounding article and by the operations shown in the formula.

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where w is the real wage, Y/L output per worker, and sLs_L labour’s share of value added. Productivity growth is necessary for durable wage growth but not sufficient for it: the second term can absorb the first for decades. Allen’s contribution is to show that in Britain it did.

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