Ratio to Measure Worker Exploitation

A stock statistic I recently discovered was "revenue per employee", basically Total Revenue/Total Employees. I then did my own research to figure out what the average salary was, Total Payroll/Total Employees. Then, I did divided the average revenue/average salary, which shows how much they revenue the worker is expected to generate per 1 dollar paid. I already did a few companies.


For example, Apple, for every dollar it pays in payroll, on average will generate $16.31 in revenue. You can also think of the reciporcal of this on a per dollar basis - Apple makes a dollar revenue, it only pays 6 cents to the workers. Obviously this reciprocal is constrained between 0 and 1, 0 being absolute slavery and 1 being the workers enjoying the revenue.


I also did the same calculation with revenue after deductions (less payroll since workers must generate their own salary). I did this because I figured it'd be the first objection. Using that, Apple pays 1 dollar and gets 5.97 in pure revenue (all expenses have been paid), or for every 1 dollar of revenue after expenses, Apple pays it's workers 17 cents of that. I wonder if there's a name for this ratio or if it's been discussed before. The reciprocal I think is most interesting because it is limited from 0-1, and you can literally see how wages is just a sliding scale of slavery. You'd also be able to rank and point out companies that were the most egregious offenders (so far Apple and Chipotle are winning in my research).

One last way I toyed with this was post-tax dollars as well. For every 1 dollar after taxes and expenses Apple generates, it gives 21 cents to its workers.


Big fan by the way, Please let me know what you think.

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  • Jonathan Dukes
    tagged this with good 2016-11-08 02:13:08 -0500
  • Brian Karabinchak
    published this page in Ask Prof. Wolff 2016-10-28 12:05:06 -0400