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The Division of Labor and the Market for Organizations

Author

Listed:
  • Lindbeck, Assar

    (Stockholm University)

  • Snower, Dennis J.

    (University College London)

Abstract

The paper examines the determinants of the division of labor within firms. It provides an explanation of the pervasive observed changes in work organization away from the traditional functional departments and towards multi-tasking and job rotation. Whereas the existing literature on the division of labor within firms emphasizes the returns from specialization and the need for coordination of the work of different workers, the present analysis focuses on the returns from multi-tasking, which is shown to arise from informational and technological complementarities among tasks as well as from the exploitation of the versatility of human capital. The paper also explores how the move towards multi-tasking can affect the labor market, deriving implications for wage inequality, employment, and unemployment.

Suggested Citation

  • Lindbeck, Assar & Snower, Dennis J., 2000. "The Division of Labor and the Market for Organizations," IZA Discussion Papers 119, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp119
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    Cited by:

    1. Fehn, Rainer, 2002. "Arbeitsmarktflexibilisierung und Arbeitslosigkeit," Discussion Paper Series 54, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    2. R. Antonietti, 2005. "The role of general and firm-specific training for new technology adoption and economic growth: a critical review," Working Papers 538, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. Zon, Adriaan van & Antonietti, Roberto, 2005. "Education and Training in a Model of Endogenous Growth with Creative Destruction," Research Memorandum 010, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    4. Norbert Berthold & Rainer Fehn, 2003. "Unemployment in Germany: Reasons and Remedies," CESifo Working Paper Series 871, CESifo.

    More about this item

    Keywords

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • 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
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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    1. Industrial Sociology (FCT-UNL)

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