The Division of Labour, Worker Organisation, and Technological Change

The model developed in this paper explains differences in the division of labour across firmsas a result of computer technology adoption. We find that changes in the division of labourcan result both from reduced production time and from improved communicationpossibilities. The first shifts the division of labour towards a more generic structure, while thelatter enhances specialisation. Although there exists heterogeneity, our estimates for arepresentative sample of Dutch establishments in the period 1990-1996 suggest thatproductivity gains have been the main determinant for shifts in the division of labour withinmost firms. These productivity gains have induced skill upgrading, while in firms gainingmainly from improved communication possibilities specialisation increased and skillrequirements have fallen.