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Equation 5 · Part 12 · What the Machine Breakers Actually Wanted

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Δln⁡L  =  η Δln⁡Y⏟productivity  −  ∫II+ΔIs(x) dx⏟displacement  +  ∫NN+ΔNs(x) dx⏟reinstatement\Delta \ln L \;=\; \underbrace{\eta \, \Delta \ln Y}_{\text{productivity}} \;-\; \underbrace{\int_{I}^{I+\Delta I} s(x)\,dx}_{\text{displacement}} \;+\; \underbrace{\int_{N}^{N+\Delta N} s(x)\,dx}_{\text{reinstatement}}
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What this part means

The expressions on both sides represent the same quantity under the stated assumptions.

Its job in the formula

The equals sign connects the complete expression on the left with the complete expression on the right. Both sides must have compatible units.

The passage around this formula

Written schematically, the change in labour demand decomposes as Δln⁡L  =  η Δln⁡Y⏟productivity  −  ∫II+ΔIs(x) dx⏟displacement  +  ∫NN+ΔNs(x) dx⏟reinstatement\Delta \ln L \;=\; \underbrace{\eta \, \Delta \ln Y}_{\text{productivity}} \;-\; \underbrace{\int_{I}^{I+\Delta I} s(x)\,dx}_{\text{displacement}} \;+\; \underbrace{\int_{N}^{N+\Delta N} s(x)\,dx}_{\text{reinstatement}}. where tasks are indexed by x , s(x) is the value-added share of task x , I is the automation frontier below which capital performs the task, N is the upper edge of the task space where new tasks appear, and η\eta scales the induced demand from higher output. The expression is illustrative of the structure rather than a reproduction of any published estimating equation; the substantive claim it encodes is that the sign of Δ\Delta ln⁡\ln L is not determined by the size of Δ\Delta I alone.

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Learn the underlying idea

An equals sign says that the expression on its left and the expression on its right have the same value under the stated definitions and assumptions.

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Sources cited in the article section

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