The Division of Labour, Worker Organisation, and Technological Change

39 Pages Posted: 11 Aug 2005

See all articles by Lex Borghans

Lex Borghans

Maastricht University - Department of Economics; University of Maastricht - Research Centre for Education and the Labour Market (ROA); IZA Institute of Labor Economics

Bas ter Weel

University of Amsterdam - SEO Economic Research; Institute for the Study of Labor (IZA)

Date Written: August 2005

Abstract

The model developed in this paper explains differences in the division of labour across firms as a result of computer technology adoption. We find that changes in the division of labour can result both from reduced production time and from improved communication possibilities. The first shifts the division of labour towards a more generic structure, while the latter enhances specialisation. Although there exists heterogeneity, our estimates for a representative sample of Dutch establishments in the period 1990-1996 suggest that productivity gains have been the main determinant for shifts in the division of labour within most firms. These productivity gains have induced skill upgrading, while in firms gaining mainly from improved communication possibilities specialisation increased and skill requirements have fallen.

Keywords: division of labour, wage level and structure, technological change, computerisation of the labour market

JEL Classification: J31, O15, O33

Suggested Citation

Borghans, Lex and ter Weel, Bas, The Division of Labour, Worker Organisation, and Technological Change (August 2005). IZA Discussion Paper No. 1709, Available at SSRN: https://ssrn.com/abstract=780924

Lex Borghans

Maastricht University - Department of Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

University of Maastricht - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Bas Ter Weel (Contact Author)

University of Amsterdam - SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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