# Division of Labour

## Definition

The separation of a work process into distinct tasks performed by specialised workers, increasing productivity through greater dexterity, saved time, and the invention of labour-saving machinery, originally arising from the propensity to truck, barter, and exchange.

## Source Chapter

Book I, Chapter 2

## Context

The chapter's central concept, described as the necessary consequence of human propensity to exchange, which allows individuals to specialise in particular occupations and thereby increase overall productivity and wealth.

## Economic Domain

Production

## Original Wording

Smith describes the division of labour as arising from the power of exchange and as a source of increased productive powers.

## Modern Interpretation

Specialisation increases throughput by improving skill, reducing switching costs, and encouraging process innovation.