Croissance par division du travail

Xavier Ragot

Annals of Economics and Statistics, 2003, issue 70, 77-106

Abstract: This paper presents a growth model based on continuous increases in division of Labour. Division of Labour takes place within each firm. lt raises the productivity of workers but it is limited by coordination costs. This division of labour generates innovation opportunities and allow for the introduction of new types of capital goods, which are produced by firms which divide work again. The continuous increase in the number of tasks performed within firms generates a balanced growth, because of the increase in the 'roundaboutness' of the production method. We show that the market equilibrium generates a balanced growth path and that it allocates to few resources to the coordination of division of labour.

Date: 2003
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Working Paper: Croissance par division du travail (2000)
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