The Division of Labor: Productivity, Coordination, and Learning

Katrine Loken (), Mikko Silliman (), Willén, Alexander () and Yaling Xu
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Katrine Loken: Norwegian School of Economics
Mikko Silliman: Aalto University
Willén, Alexander: Norwegian School of Economics
Yaling Xu: Norwegian School of Economics

No 19032, IZA Discussion Papers from IZA Network @ LISER

Abstract: The division of labor is fundamental to how firms organize production. While economists have long recognized the tradeoff between specialization gains and coordination costs, less attention has been paid to its implications for human capital accumulation. A finer division of labor allows workers to develop greater expertise through repeated performance of narrowly defined tasks, but may also reduce opportunities to learn from coworkers by limiting interactions and knowledge exchange. We study these static and dynamic tradeoffs using population-wide Norwegian employer–employee records, linked workplace surveys, quasi-experimental variation in coworker availability, and randomized experiments with workers and managers.

Keywords: division of labor; learning; firm organization (search for similar items in EconPapers)
JEL-codes: J24 J31 M53 M54 (search for similar items in EconPapers)
Date: 2026-10
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