Abstract
In this article, the industrialization process can be regarded as the transition from traditional to modern and more coercive work organizations. Workers are heterogeneous (autonomous or non-autonomous) and according to their preferences they choose between these two organizational forms. In addition, preferences evolve through intergenerational transmission mechanisms. This setting allows for a reciprocal interplay between the evolution of workers' autonomy and the industrialization process that generates multiple development paths. Thus, the initial degree of autonomy within the workforce may have long-run implications for the level of industrialization. Finally, taking into account a complementarity between autonomy and incentives to invest in human capital, we conclude to a non-monotonic impact of workers' autonomy on the growth process.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have