Library Header Image
LSE Research Online LSE Library Services

Organization and inequality in a knowledge economy

Garicano, Luis and Rossi-Hansberg, Esteban (2006) Organization and inequality in a knowledge economy. Quarterly Journal of Economics, 121 (4). pp. 1383-1435. ISSN 0033-5533

Full text not available from this repository.
Identification Number: 10.1162/qjec.121.4.1383


We present an equilibrium theory of the organization of work in an economy where knowledge is an essential input in production and agents are heterogeneous in skill. Agents organize production by matching with others in knowledge hierarchies designed to use and communicate their knowledge efficiently. Relative to autarky, organization leads to larger cross-sectional differences in knowledge and wages: low skill workers learn and earn relatively less. We show that improvements in the technology to acquire knowledge lead to opposite implications on wage inequality and organization than reductions in communication costs.

Item Type: Article
Official URL:
Additional Information: © 2006 President and Fellows of Harvard College and the Massachusetts Institute of Technology
Divisions: Management
Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
Date Deposited: 27 Oct 2009 16:54
Last Modified: 10 Jun 2024 01:15

Actions (login required)

View Item View Item