Other Characteristics
The American system contributed to efficiency gains through division of labor. Division of labor helped manufacturing transition from small artisan's shops to early factories. Key pieces of evidence supporting efficiency gains include: increase in firm size, evidence of returns to scale, and an increase in non-specialized labor. The need for firms to train uneducated people to perform only one thing in the productivity chain allowed for the use of non-specialized labor. Women and children were employed more frequently within larger firms, especially those producing furniture and clothing.
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