Post-Labour Economics

Module 1 — What We're Actually Talking About

Lesson 2: Two Definitions of Work

Last updated: 2026-10-09

Before asking whether work will disappear, it helps to be clear about what work actually is. Economics has one answer. Physics has another. Both are useful.

Lesson 2: Two Definitions of Work

Blackboard

What you're actually paid for

10 min
Concept 1

The economic definition

In standard labour economics, work is compensated human activity that produces valuable transformation. A surgeon turns a diseased body into a healthier one. A teacher turns an uninformed student into an informed one. A carpenter turns timber into a house. The compensation is what makes it economic activity; the transformation is what makes it valuable.

Concept 2

The energy-and-information view

Thermodynamic economists — notably Robert Ayres and Benjamin Warr — point out that every act of production is energy flowing through something to rearrange matter or process information. In this view, human labour is one particular way of supplying that energy and that information. It is not the only way, and historically has been displaced piece by piece.

Concept 3

What people actually pay for

Customers do not pay for hours of human activity as such. They pay for outcomes: a working roof, a healthy heart, a clean floor, a correct tax return. Hours are often how we measure and invoice, but they are not what is being bought. This distinction matters when a non-human can deliver the same outcome.

Concept 4

Why the two definitions matter

If you think of labour primarily as human effort, automation looks inevitable as machines get cheaper. If you think of it as something that contains irreducibly human elements — care, judgment, accountability, meaning — the picture becomes more nuanced. Most honest analysis uses both lenses.

Pause and Think

Pick a job you know well. Can you describe what it does in purely physical terms — what matter or information gets rearranged?

Flashcards

Key Terms

Click or press Enter to flip a card. Review these before the practice question.

Additional Resources
Practice Question

According to the economic definition introduced in this lesson, what is customers ultimately paying for when they hire a plumber?

Does not count for certificate
Choose one answer, use the hint if needed, then check your answer.
Use the hint before checking if you need a nudge.