A note on the two approaches to the distribution of surplus value.

This article focuses on comparing two theoretical approaches to estimating sectoral rates of exploitation within the Marxian labour theory of value framework, specifically addressing skill differentials and labour effort. The first approach, associated with Foley and Cogliano (FC), assumes the equalisation of the rates of exploitation (EQRE) across industries, implying uniform compensation for value production (CVP) and an inverse relationship between workers' skill levels and labour discipline (effort per wage). The alternative approach, linked to Rieu and Park (RP), assumes equal value creation per unit of concrete labour time (VELT) across industries, leading to an inverse relationship between skill and labour intensity (effort), while allowing rates of exploitation to vary. The paper extends these models by explicitly incorporating skills and efforts, highlighting that the FC approach equalises CVP and labour discipline varies inversely with skill, whereas the RP approach equalises VELT and labour effort varies inversely with skill. The authors conclude that understanding the empirical distribution of exploitation rates requires further investigation into how skill, effort, and wages interact under varying institutional and market conditions.