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The Division of Labor, Coordination Costs, and Knowledge

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  • Gary S. Murphy Becker
  • Kevin M.

Abstract

This paper considers specialization and the division of labor. A more extensive division of labor raises productivity because returns to the time spent on tasks are usually greater to workers who concentrate on a narrower range of skills. The traditional discussion of the division of labor emphasizes the limitations to specialization imposed by the extent of the market. The authors claim that the degree of specialization is more often determined by other considerations. Especially emphasized.are various costs of "coordinating" specialized workers who perform complementary tasks and the amount of general knowledge available. Copyright 1992, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Paper provided by Chicago - Center for Study of Economy and State in its series University of Chicago - George G. Stigler Center for Study of Economy and State with number 79.

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Date of creation: 1992
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Handle: RePEc:fth:chices:79

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  1. Human Capital, Endogenous Growth and Hospital Performance
    by Sam Watson in The Academic Health Economists' Blog on 2012-03-27 10:44:23
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