Examining the "Lump of Labor" Fallacy Using a Simple Economic Model

Abstract: The lump of labor fallacy holds that there is a fixed amount of work to be done, which determines the number of jobs in an economy. If this were true, new jobs could not be generated, just reallocated. This essay provides some clear thinking about the role of labor in an economy.

Access Documents


Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Page One Economics Newsletter

Publication Date: 2020-11