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The Division of Labour, Worker Organisation, and Technological Change

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  • Lex Borghans
  • Bas Weel

Abstract

The model developed in this article explains differences in the division of labour across firms as a result of computer technology adoption. Changes in the division of labour result from reduced production time and improved communication possibilities. The first shifts the division of labour towards generic structures, while the latter enhances specialisation. Our estimates for a sample of Dutch establishments in the period 1990-6 suggest that productivity gains have been the main determinant for shifts in the division of labour. These productivity gains induced skill upgrading, while in firms gaining from improved communication possibilities specialisation increased and skill requirements have fallen. Copyright 2006 Royal Economic Society.

Suggested Citation

  • Lex Borghans & Bas Weel, 2006. "The Division of Labour, Worker Organisation, and Technological Change," Economic Journal, Royal Economic Society, vol. 116(509), pages 45-72, February.
    • Handle: RePEc:ecj:econjl:v:116:y:2006:i:509:p:f45-f72
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • 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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