The paper analyzes the contemporary organizational restructuring of production and work and derives some salient implications for the labor market. The analysis focuses on the switch from occupational specialization at “Tayloristic” organizations to multi-tasking at “holistic” organizations. The restructuring process is shown to create demands for new combinations of skills and thereby “resegment” the labor market, raising the wages and job opportunities of some workers relative to others. We are indebted to Michael Orszag for his insightful comments, and have benefited from the suggestions of Ruth Klinov, Reuben Gronau, Eric Mellander, Torsten Persson, Jorgen Weibull, and seminar participants at the Hebrew University of Jerusalem, the Industrial Institute for Economic and Social Research (Stockholm), and the Institute for International Economic Studies (Stockholm). We have profited from discussions with Solveig Wikstrom on the reorganization of firms, and are grateful to Jorgen Nilsson for drawing the figures.
Restructuring of firms technological change information flows employment labor market segmentation