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The Knowledge Economy at the Turn of the Twentieth Century: The Emergence of Hierarchies

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Author Info

  • Luis Garicano
  • Esteban Rossi-Hansberg

Abstract

We use a simplified version of Garicano and Rossi-Hansberg (2005) to understand the impact of improvements in communications technology at the turn of the twentieth century on wages and organization. Improvements in communication technology allow individuals of different skills to abandon self-employment and form teams with each other. In particular, they allow high-skill agents to leverage their knowledge by specializing in the hardest tasks and hiring low-skill agents to do the routine tasks. Organization then exploits the complementarities between individual skills, which in turn affects the distribution of earnings. (JEL: D2, J3, L2, N3) (c) 2006 by the European Economic Association.

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Bibliographic Info

Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 4 (2006)
Issue (Month): 2-3 (04-05)
Pages: 396-403

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Handle: RePEc:tpr:jeurec:v:4:y:2006:i:2-3:p:396-403

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Cited by:
  1. Kim, Se-Um, 2008. "The Technological Origins of the High School Movement," MPRA Paper 12087, University Library of Munich, Germany.
  2. Pol Antràs & Luis Garicano & Esteban Rossi-Hansberg, 2006. "Organizing Offshoring: Middle Managers and Communication Costs," NBER Working Papers 12196, National Bureau of Economic Research, Inc.
  3. André van Stel & José Maria Millán & Concepcion Roman, 2013. "Investigating the impact of the technological environment on survival chances of employer entrepreneurs," Scales Research Reports H201208, EIM Business and Policy Research.
  4. Federico J. Díez & Ali K. Ozdagli, 2011. "Self-employment in the global economy," Working Papers 11-5, Federal Reserve Bank of Boston.

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