WorkEthicExtended-Overhead.docVIP

Do the Economies of Specialization Justify the Work Ethics? A Further Examination of Buchanan’s Hypothesis* Yew-Kwang Ng Dept. of Economics Monash University Email: Kwang.ng@buseco.monash.edu.au 1. Introduction Buchanan (1991, 1994) hypothesis. The economies of specialization = division of labour increases productivity. Works more = ↑ the extent of the market Ng Ng’s (2003) qualified support, show: ↓ preference for leisure by an individual benefits her trading partners by improving the terms of trade of the latter. Higher degree of economies of specialization, larger beneficial effect.