AI as Coordination-Compressing Capital: Task Reallocation, Organizational Redesign, and the Regime Fork

Fuente: arXiv
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Main Author: Farach, Alex
Format: Preprint
Published: 2026
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author Farach, Alex
author_facet Farach, Alex
contents Task-based models of AI and labor hold organizational structure fixed. We introduce agent capital: AI that reduces coordination costs, expanding spans of control and enabling endogenous task creation. Five propositions characterize how coordination compression affects output, hierarchy, manager demand, wage dispersion, and the task frontier. The model generates a regime fork: the same technology produces broad-based gains or superstar concentration depending on who benefits from coordination compression. Simulations with heterogeneous workers confirm sharp regime divergence. Economy-wide inequality falls in all regimes through employment expansion, but the manager-worker wage gap widens universally. The distributional impact hinges on who controls organizational elasticity.
format Preprint
id arxiv_https___arxiv_org_abs_2602_16078
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle AI as Coordination-Compressing Capital: Task Reallocation, Organizational Redesign, and the Regime Fork
Farach, Alex
General Economics
Economics
Task-based models of AI and labor hold organizational structure fixed. We introduce agent capital: AI that reduces coordination costs, expanding spans of control and enabling endogenous task creation. Five propositions characterize how coordination compression affects output, hierarchy, manager demand, wage dispersion, and the task frontier. The model generates a regime fork: the same technology produces broad-based gains or superstar concentration depending on who benefits from coordination compression. Simulations with heterogeneous workers confirm sharp regime divergence. Economy-wide inequality falls in all regimes through employment expansion, but the manager-worker wage gap widens universally. The distributional impact hinges on who controls organizational elasticity.
title AI as Coordination-Compressing Capital: Task Reallocation, Organizational Redesign, and the Regime Fork
topic General Economics
Economics
url https://arxiv.org/abs/2602.16078