Specialization of Labor

Definition

Specialization of labor is when different people in society take on specific roles or jobs that require unique skill sets; this leads to increased efficiency and productivity.

Related terms

Division of Labor: The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

Economic Efficiency: The optimal production and distribution of resources given existing factors including technology and social values.

Capitalism: An economic system characterized by private ownership where investment and profits are determined by competition in free markets.