BEGINNER

Division of Labor

With the division of labor, one individual does not complete every step in the production process. Instead, responsibility for each step in the production process is allocated to specific individuals. Able to specialize in a particular stage of production, each worker develops a comparative advantage for the tasks from that stage and increases the efficiency of production. 

 

The Truth about the Minimum Wage

 

Mark Hendrickson - What about Walmart?

Related Publications

ARCHIVE

Exchange as Teamwork

MARCH 14, 2011 by NICHOLAS SNOW

ARTICLE

Unions or the Division of Labor

SEPTEMBER 06, 2010 by NICHOLAS SNOW

ARCHIVE

Trade

JUNE 30, 2009 by KEIR KETEL

Related Freeman Articles

ARTICLE

Outsourcing Is Bad?

It's the division of labor, that is, cooperation.

AUGUST 27, 2012 by TYLER WATTS

Economics makes clear that outsourcing is not the problem; the problem is scarcity. Outsourcing is (part of) the solution.

WABI-SABI

Whatever Happened to the Division of Labor?

A neglected concept in development economics.

AUGUST 07, 2012 by SANDY IKEDA

For Adam Smith the division of labor plays a crucial role in the material progress of society, yet it seems to do little of the theoretical heavy lifting in modern treatments of economic development.

ARTICLE

Free Trade: Key to Peace and Prosperity

Specialization and Trade Benefit Both Individuals and Society

JANUARY 01, 2004 by WILLIAM H. PETERSON

ARTICLE

Specialization and Wealth

Free Markets Extend the Range of Cooperative Specialization

AUGUST 01, 1998 by DWIGHT R. LEE

ARTICLE

Specialization and Exchange

OCTOBER 01, 1989 by GENE SMILEY

Related Multimedia

MULTIMEDIA - AUDIO

Labor Economics

SEPTEMBER 17, 2009

ONLINE EVENTS

FEE offers live online events for people new to the economic, ethical, and legal principles of a free society.

CURRENT ISSUE

December 2014

Unfortunately, educating people about phenomena that are counterintuitive, not-so-easy to remember, and suggest our individual lack of human control (for starters) can seem like an uphill battle in the war of ideas. So we sally forth into a kind of wilderness, an economic fairyland. We are myth busters in a world where people crave myths more than reality. Why do they so readily embrace untruth? Primarily because the immediate costs of doing so are so low and the psychic benefits are so high.
Download Free PDF

PAST ISSUES

SUBSCRIBE

RENEW YOUR SUBSCRIPTION

img E-mail Subscription

VIEW PRIVACY POLICY