Job rotation: Cost, benefits, and stylized facts

A fundamental principle of economics is that specialization and the division of labor increase the productivity of workers by allowing them to concentrate on narrowly defined tasks. However, not all firms appear to promote a high degree of specialization, but instead rotate workers among several tasks. This paper develops a simple model of work organization to identify the cost and benefits of job rotation and to determine the factors that affect a firm's choice between rotation and specialization. It then uses the model to explain some stylized facts regarding firms and organizations that employ or have historically employed rotation. (JEL: D 20, J 24, L 23, O 30).