Precarization, Informalization, and Marx

Abstract

It is argued that informalization (used primarily to understand economic dynamics in the Global South) and precarization (used primarily in the analysis of the labor market in the Global North) are in the process of becoming identical phenomena and are both related to the expansion of the reserve army of labor. Insights from Marx are useful in understand both processes, especially his concepts of the value of labor, of formal subsumption vs. real subsumption, and of absolute vs. relative surplus value. The vast expansion and globalization of the labor force has fostered the trend toward a reversion to formal subsumption and facilitated the recommodification of labor.