Compound Labor

Corresponding to “simple labor”. Compound labor refers to labor that needs special learning and training, with certain knowledge and skills to perform. For example, designing skyscrapers and all kinds of high-tech labor belong to compound labor. Compound labor is multiplied simple labor because the labor-power engaged in compound labor requires higher education costs than ordinary labor, and its production requires more labor-time, thus it has a higher value. Since the value of this kind of labor is higher, it also manifests itself as higher-level labor and is objectified to more value in the same period of time. The magnitude of value of a commodity is determined by the socially necessary labor-time, which is for the same kind of commodities. The complexity of labor in the production of different commodities varies, and the magnitude of value must be determined by reducing various kinds of labor into different proportions of simple labor as their standard, i.e., by reducing a certain amount of compound labor into multiplied simple labor. In determining the magnitude of value of a commodity, it is necessary to convert the individual labor-time into the socially necessary labor-time, and also to convert labor of different degrees of complexity into the equivalent simple labor, as a common standard.

The distinction between simple and compound labor is relative. There are different criteria in different periods of economic development and in different nations. However, within the same period of time in the same nation, the difference between simple labor and compound labor objectively exists. In the process of commodity exchange, a smaller amount of products of compound labor can be exchanged with a greater amount of products of simple labor. The concrete proportion according to which the exchange takes place is formed spontaneously in the process of countless competitions and exchanges in a certain period of time and in a certain place, rather than being decided arbitrarily according to people’s subjective will.