Discussion Paper Details

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Title: The Division of Labour Within Firms

Author(s): Assar Lindbeck and Dennis J. Snower

Publication Date: March 1998

Keyword(s): division of labour, Information Flows, multi-tasking, organization of work, Specialization and Technological Change

Programme Area(s): Human Resources

Abstract: The paper examines the determinants of the division of labour within firms. It provides an explanation of the pervasive change in work organization away from the traditional functional departments and towards multi-tasking and job rotation. Whereas the existing literature on the division of labour 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.

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Bibliographic Reference

Lindbeck, A and Snower, D. 1998. 'The Division of Labour Within Firms'. London, Centre for Economic Policy Research.