What is the Division of Labor? Why does the Division of Labor increase the economy's level of production? The Division of Labor is divided among workers to produce goods or service. According to OpenStax College, (2014), Adam Smith first introduces the ideas of Division of Labor and suggested three reasons to increase production, by separating the task among the workers. The first reason is the specialization of businesses or small job that allows workers to use their skills or talent as part of the production process. For example, the specialization in Hollywood studio are divided into teams, such as the editor, writer, cinematography, etc. The second specialize in producing goods more quickly and better quality. For example, a shoemaker can
