Technical Change and the Dynamics of The Division of Labor
The diversity of the labor factor in France evolves with some clear trends. This paper studies the implication for growth theory of the dynamics of the division of labor. Two causalities are introduced into a growth model with an endogenous evolution of the diversity of both factor, capital and labor. The first one is that there is a substitution effect at the firm level between the diversity of intermediate goods and the diversity of tasks decided by the firms. Second, the division of labor, and hence the simplification of tasks, facilitates innovation as Adam Smith already noted. The model yields two results. First, the division of labor increases in the long run if the endogenous speed of technical change is not too high. More generally, the division of labor tends to decrease when the technical change accelerates. These results are consistent with French data. Second, the model yields as a by product a growth model without scale effects : The aggregate returns on technical change are consistent with the data when the effect of division of labor on innovation is introduced.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 01 43 13 63 00
Fax: 01 43 13 63 10
Web page: http://www.delta.ens.fr/Email:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:del:abcdef:2003-09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.