IDEAS home Printed from https://ideas.repec.org/p/brd/wpaper/25.html

The Evolution of Work

Author

Listed:
  • Markus Mobius

    (Harvard University)

  • Raphael Schoenle

    (Department of Economics, Brandeis University)

Abstract

The division of labor first increased during industrialization and then decreased again after 1970 as job roles have expanded. We explain these trends in the organization of work through a simple model where (a) machines require standardization to exploit economies of scale and (b) more customized products are subject to trends and fashions which make production tasks less predictable and a strict division of labor impractical. At the onset of industrialization, the market supports only a small number of generic varieties which can be mass-produced under a strict division of labor. Thanks to productivity growth, niche markets gradually expand, producers eventually move into customized production and the division of labor decreases again. The model predicts capital-skill substitutability during industrialization and capital skill complementarity in the maturing industrial economy. Moreover, conventional calculations of the factor content of trade underestimate the impact of globalization because they do not take into account changes in product market competition induced by trade. We test our model by exploiting the time-lags in the introduction of bar-coding in three-digit SIC manufacturing industries in the US. We find that both increases in investments in computers and bar-coding have led to skill-upgrading. However, consistent with our model bar-coding has affected mainly the center of the skill distribution by shifting demand away from the high-school educated to the less-than-college educated.

Suggested Citation

  • Markus Mobius & Raphael Schoenle, 2006. "The Evolution of Work," Working Papers 25, Brandeis University, Department of Economics and International Business School.
    • Handle: RePEc:brd:wpaper:25
    as

    Download full text from publisher

    File URL: http://www.brandeis.edu/economics/RePEc/brd/doc/Brandeis_WP25.pdf
    File Function: First version, 2006
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1279-1333.
    2. Hiller, Victor, 2018. "Self-control and the rise and fall of factory discipline," Journal of Development Economics, Elsevier, vol. 133(C), pages 187-200.
    3. Waka Cheung & Yew-Kwang Ng, 2013. "The Impact of Market Scale on Standardization and Specialization," Studies in Microeconomics, , vol. 1(2), pages 243-266, December.
    4. Maurin, Eric & Thesmar, David, 2002. "Globalization and the demand for skill: An Export Based Channel," CEPR Discussion Papers 3406, C.E.P.R. Discussion Papers.
    5. Thomas J. Holmes & Matthew F. Mitchell, 2008. "A theory of factor allocation and plant size," RAND Journal of Economics, RAND Corporation, vol. 39(2), pages 329-351, June.
    6. Kurokawa, Yoshinori, 2010. "Fixed cost, number of firms, and skill premium: An alternative source for rising wage inequality," Economics Letters, Elsevier, vol. 108(2), pages 141-144, August.
    7. Emek Basker & Timothy Simcoe, 2021. "Upstream, Downstream: Diffusion and Impacts of the Universal Product Code," Journal of Political Economy, University of Chicago Press, vol. 129(4), pages 1252-1286.
    8. Yoshinori Kurokawa, 2014. "A Simple Model of Competition Policies, Trade, and the Skill Premium," Tsukuba Economics Working Papers 2014-002, Faculty of Humanities and Social Sciences, University of Tsukuba, revised Apr 2020.
    9. Mustafa Dogan & Pinar Yildirim, 2022. "Managing automation in teams," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(1), pages 146-170, February.
    10. Jacques Durieu & Hans Haller & Philippe Solal, 2011. "Nonspecific Networking," Games, MDPI, vol. 2(1), pages 1-27, February.
    11. Dag Rønningen, 2007. "Are technological change and organizational change biased against older workers? Firm-level evidence," Discussion Papers 512, Statistics Norway, Research Department.
    12. Fernando A. Lozano & Mary J. Lopez, 2013. "Border Enforcement and Selection of Mexican Immigrants in the United States," Feminist Economics, Taylor & Francis Journals, vol. 19(1), pages 76-110, January.
    13. Anandajayasekeram, Pooniah & Benin, Samuel & Birner, Regina & Cohen, Marc J. & Davis, Kristin & Ekboir, Javier & Horna, Daniela & Mbabu, Adiel & Nkonya, Ephraim & Pender, John & Spielman, David, 2006. "From "best practice" to "best fit": a framework for designing and analyzing pluralistic agricultural advisory services worldwide," EPTD discussion papers 05, International Food Policy Research Institute (IFPRI).
    14. Hisashi Ohtsuki, 2011. "Evolutionary Dynamics of the Nash Demand Game: A Diffusion Approach," Dynamic Games and Applications, Springer, vol. 1(3), pages 449-461, September.
    15. André Blais & Jean-Benoît Pilet & Karine van Der Straeten & Jean-François Laslier & Maxime Heroux-Legault, 2011. "To vote or to abstain? An experimental study or first past the poste and PR elections," Working Papers hal-00616823, HAL.
    16. Richard Baron & Jacques Durieu & Hans Haller & Rahul Savani & Philippe Solal, 2008. "Good neighbors are hard to find: computational complexity of network formation," Review of Economic Design, Springer;Society for Economic Design, vol. 12(1), pages 1-19, April.
    17. Matthew F. Mitchell, 2005. "Specialization And The Skill Premium In The 20th Century," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 935-955, August.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:brd:wpaper:25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrea Luna (email available below). General contact details of provider: https://edirc.repec.org/data/gsbraus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.