How is labor organized in a command economy?

Economics Command Economy Questions Medium



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How is labor organized in a command economy?

In a command economy, labor is organized and controlled by the government or central planning authority. The government determines the allocation of labor resources, including the number of workers, their skills, and the industries they will work in.

In this system, the government typically owns and operates most of the major industries and enterprises. It directly assigns individuals to specific jobs and determines their wages and working conditions. The government also sets production targets and quotas for each industry, which further influences the allocation of labor.

The central planning authority decides on the priorities and goals of the economy, and labor is mobilized accordingly to meet those objectives. The government may implement policies such as mandatory labor service, where individuals are required to work in specific sectors or industries for a certain period of time.

Additionally, the government may provide extensive training and education programs to ensure that the workforce possesses the necessary skills and knowledge required for the planned economy. This can involve centralized vocational training centers or educational institutions that focus on producing workers with specific skills needed for the designated industries.

Overall, labor in a command economy is organized and directed by the government to achieve the economic goals and objectives set by the central planning authority. The government's control over labor allocation and decision-making is a defining characteristic of this economic system.