The Theory Of The Division Of Labor

959 Words4 Pages
If I were Smith, I think the theory of the division of labor can still apply to this “on-demand” economy. With the concept of the independent worker who controls the product he or she produces, it promotes the division of labor, as workers are assigned to specialize in different fields so that they might become experts in making something specific, and then having ample surplus to trade. For instance, Uber is just an app on smartphone to meet consumers’ needs without any control and intervention of their drivers working time. In other words, the worker (the driver) is the solely one to control their surplus that is the income source from their driving hours. Moreover, the specialization theory is better known as division of labor, which broke large jobs into smaller jobs then would assign jobs to workers. Everything is mostly done by machines contemporary, we still use this idea but in a different way. It creates an increase in output and occasions technological specialization, which further increases productivity. For instance, Topcoder broke its big projects into small-sized project and divided them to their freelance developers. It implies assigning each labor to the job that suits him best. Furthermore, there is an expansion of the market that brings about the division of labor under this “on-demand” economy. Price decrease leads to the expansion of market and population growth as competition formed among companies. For example, Alfred aggregates on-demand companies in
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