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The Economic Analysis of Labour-Managed Firms

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  • Ireland, Norman J

Abstract

The theory of labor-managed firms has recently been extended and developed in a number of directions. This paper is intended to introduce readers to these developments. It first reviews the well-known Illyrian model of labor-managed firms and then survey s recent contributions concerning the property rights of membership and capital, internal incentives and labor supply, and long-run behav ior. Reasons are given why long-run equivalence of labor-managed and conventional systems may not occur. The effects of market imperfectio ns and uncertainty, and of alternative firm objectives are also discu ssed. Finally, some prospects for future research are outlined. Copyright 1987 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Ireland, Norman J, 1987. "The Economic Analysis of Labour-Managed Firms," Bulletin of Economic Research, Wiley Blackwell, vol. 39(4), pages 249-272, October.
    • Handle: RePEc:bla:buecrs:v:39:y:1987:i:4:p:249-72
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    Cited by:

    1. Josefina Fernandez-Guadaño & Manuel Lopez-Millan & Jesús Sarria-Pedroza, 2020. "Cooperative Entrepreneurship Model for Sustainable Development," Sustainability, MDPI, vol. 12(13), pages 1-11, July.
    2. Pirrong, Craig, 2000. "A Theory of Financial Exchange Organization," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 437-471, October.
    3. Vontalge, Alan L., 1991. "A feasibility study of swine producer management cooperatives," ISU General Staff Papers 1991010108000018168, Iowa State University, Department of Economics.
    4. Josefina Fernández-Guadaño, 2014. "Employee-owned and capitalist firms: is performance linked to ownership?," Service Business, Springer;Pan-Pacific Business Association, vol. 8(4), pages 541-558, December.

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