Measuring global exploitation, 1990–2023: does globalization equalize exploitation rates?

This paper develops a novel empirical framework to estimate exploitation rates (the ratios of unpaid to paid labor time) and tests the hypothesis that globalization fosters their convergence. By integrating the Leontief input–output model with the New Interpretation of Marxian value theory, the analysis distinguishes between value production and value realization, exploring their distinct implications for global exploitation. Drawing on the GLORIA dataset, comprising 1.2 terabytes of input–output data covering 120 sectors across 164 regions from 1990 to 2023, this study offers the most comprehensive empirical investigation of exploitation rates to date. The analysis spans four levels of aggregation (global, national, sectoral, and country–sectoral) and incorporates alternative classifications of productive and unproductive activities. A key methodological innovation is the comparative estimation of exploitation rates before and after the cross-border and cross-sectoral reallocation of value-added. The findings reveal a global fall in exploitation rates accompanied by absolute convergence. Yet this coexists with relative divergence, sustaining a core–periphery structure within global value chains. While most value is produced in peripheral regions, value realization is concentrated in the core. Unequal exchange, manifested through value transfers from high- to low-exploitation activities, conceals the global hierarchy of labor. By focusing solely on realized value, the System of National Accounts obscures these transfers, attributing peripheral value creation to core economies. The data further highlight the growing relevance of the core–periphery divide across industries. The paper reflects on the implications of these dynamics for theories of uneven development.