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Division of labour - Adam Smith

Division of labour - Adam Smith: Encyclopedia II - Division of labour - Adam Smith

In the first sentence of An Inquiry into the Nature and Causes of the Wealth of Nations (1776), Adam Smith foresaw the essence of industrialism by determining that division of labour represents a qualitative increase in productivity. His original example was the making of pins. Unlike Plato, Smith did not regard the division of labour as a consequence of human inequality but famously argued that the difference between a street porter and a philosopher was as much a consequence of the division of labour as its cause. Therefore, while f ...

Division of labour, Division of labour - Plato, Division of labour - Xenophon, Division of labour - Sir William Petty, Division of labour - Adam Smith, Division of labour - Karl Marx, Division of labour - Durkheim, Division of labour - Von Mises and globalisation, Division of labour - Modern debates, Division of labour - US 2002 estimates for the division of labour, Division of labour - The global division of labour, Division of labour - Some useful sociological references

Division of labour: Encyclopedia II - Division of labour - Adam Smith

Division of labour - Adam Smith

In the first sentence of An Inquiry into the Nature and Causes of the Wealth of Nations (1776), Adam Smith foresaw the essence of industrialism by determining that division of labour represents a qualitative increase in productivity. His original example was the making of pins. Unlike Plato, Smith did not regard the division of labour as a consequence of human inequality but famously argued that the difference between a street porter and a philosopher was as much a consequence of the division of labour as its cause. Therefore, while for Plato the level of specialisation determined by the division of labour was externally determined, for Smith it was the dynamic engine of economic progress. However, in a further chapter of the same book Smith criticises the division of labour saying it leads to a 'mental mutilation' in workers; they become ignorant and insular as their working lives are confined to a single repetitive task. This contradiction has led to some debate over Smith's opinion of the division of labour.

The specialization and concentration of the workers on their single subtasks often leads to greater skill and greater productivity on their particular subtasks than would be achieved by the same number of workers each carrying out the original broad task.

Worker skill is the chief source of productivity gain in Smith's thinking. In modern economic theory, that role has been taken over by overall technological progress and the concept of human capital.