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Study on the Influence of Division of Labor on Income Distribution
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TitleStudy on the Influence of Division of Labor on Income Distribution  
AuthorLi Jing Ran Guanghe and Xu Kun  
OrganizationChongqing Academy of Social Science Chongqing University 
Key WordsDivision of Labor; Income Distribution; Nash Bargaining Theory 
AbstractBased on the Nash bargaining theory, the paper studies the multiple effect of division of labor on income distribution. The results show that: (1) When the difference of production efficiency between producers is too big, the interest of the division of labor will gradually disappear, the income gap will achieve maximum. (2) On the condition of division of labor, the income gap depends on the overall advantage strength of high skill producer. The income gap under division of labor is less than under self-sufficiency. Therefore, division of labor has the effect of narrowing the income gap. (3) When the overall advantage strength of two producers is equal and complementary, high efficiency and high fairness will be realized together, which is the most ideal division of labor economy. The conclusion shows that “uniform of fairness and efficiency” can be realized together under certain condition. 
Serial NumberWP86 
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