Diversity in Specialization Patterns, Schur Convexity and Transference: A Note on the Measurement of the Division of Labor
Division of Labour & Transaction Costs (DLTC): A Journal for the Society of Inframarginal Economics, Vol. 2, No. 1, pp. 71-80, 2006
Posted: 24 Apr 2010
Date Written: December 1, 2006
This Note takes a preliminary investigation into the axiomatic measurement of the division of labor. We first introduce a matrix that we refer to as labor specialization matrix (LSM) to describe specialization patterns of individuals, and then present some axioms for reasonable measures of the division of labor. Remarkable among the axioms are the Schur convexity and the transference condition, both being related to increasing returns to specialization. From the axioms are derived a class of measures, which are then exemplified.
Keywords: Diversity of specialization patterns, labor specialization matrix, measurement of division of labor, Schur convexity, transference
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