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Work organization, preferences dynamics and the industrialization process

  • Hiller, Victor

In this article, the industrialization process can be regarded as the transition from traditional to modern and more coercive work organizations. Workers are heterogeneous (autonomous or non-autonomous) and according to their preferences they choose between these two organizational forms. In addition, preferences evolve through intergenerational transmission mechanisms. This setting allows for a reciprocal interplay between the evolution of workers' autonomy and the industrialization process that generates multiple development paths. Thus, the initial degree of autonomy within the workforce may have long-run implications for the level of industrialization. Finally, taking into account a complementarity between autonomy and incentives to invest in human capital, we conclude to a non-monotonic impact of workers' autonomy on the growth process.

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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 55 (2011)
Issue (Month): 7 ()
Pages: 1007-1025

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Handle: RePEc:eee:eecrev:v:55:y:2011:i:7:p:1007-1025
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