Under Capitalism, entrepreneurs can also vary their use of labor - TopicsExpress

Under Capitalism, entrepreneurs can also vary their use of labor in relation to machinery, calling up additional laborers to man the available machines or reducing the size of their wage fund by substituting machines for human labor.(356) In its continuous drive for accumulation, the capitalist mode of production has tended historically to increase the ratio of capital invested in plant an raw materials to capital paid out for labor power. (356) This variation among industrial units with different capital ratios affects the labor market, producing variation in the quantitative and qualitative demand for labor. The result is that the labor market is segmented or differentiated not homogenous.(357) -Eric Wolf, Europe and the People without History

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