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

April 2014

Around the world, people are struggling to throw off authoritarianism, with deeply mixed results. From Egypt to Venezuela, determined people build networks to overthrow their regimes, but as yet we have not learned to live without Leviathan. In this issue, Michael Malice and Gary Dudney discuss their glimpses inside totalitarian regimes, while Sarah Skwire and Michael Nolan look at how totalitarian regimes grind down the individual--and how individuals fight back. Plus, Jeffrey Tucker identifies a strain in libertarianism that, left unchecked, could reduce even our vibrant movement to something that is analogous to the grim aesthetic of architectural brutalism. The struggle for our lives and freedom is a struggle for beauty; it begins inside each of us.
Download Free PDF

PAST ISSUES

SUBSCRIBE

RENEW YOUR SUBSCRIPTION

img E-mail Subscription

VIEW PRIVACY POLICY