Lump of Labor Fallacy

Jump to: navigation, search

A Lump of Labor Fallacy is an economic fallacy that the amount of work available to labourers is fixed/finite.



  • (Wikipedia, 2014) ⇒ Retrieved:2014-10-6.
    • In economics, the lump of labour fallacy (or lump of jobs fallacy, fallacy of labour scarcity, or the zero-sum fallacy, from its ties to the zero-sum game) is the contention that the amount of work available to labourers is fixed. It is considered a fallacy by most economists, who hold that the amount of work is not static. Another way to describe the fallacy is that it treats the demand for labour as an exogenous variable, when it is not. Historically, the term "lump of labour" originated to rebut the idea that reducing the number of hours that employees are allowed to labour during the working day would lead to a reduction in unemployment. The term has also been used to describe the commonly held beliefs that increasing labour productivity and immigration cause unemployment. Whereas some argue that immigrants displace domestic workers, others believe this to be a fallacy, arguing that such a view relies on a belief that the number of jobs in the economy is fixed, whereas in reality immigration increases the size of the economy, thus creating more jobs. [1] [2]
  1. John Bercow Incoming assets: Why Tories should change policy on immigration and asylum, Social Market Foundation, October 2005, accessed 16 September 2006
  2. Laurence Cooley, Macha Farrant and Dhananjayan Sriskandarajah Selecting wisely: Making managed migration work for Britain, Institute for Public Policy Research, November 2005, accessed 16 September 2006