Embeddedness, cooperation and popular-economy firms in the informal sector
AbstractThis paper is motivated by empirical observations on popular-economy firms (PEFs) in the informal sector of Santiago de Chile. These are labor-managed firms embedded in popular milieu where cooperation between their members plays a central role. This paper develops a (partial equilibrium) microeconomic theory of PEFs. First, it endogeneizes the level of cooperation between the workers. Second, it develops a static and a dynamic model to analyze whether embeddedness influences the behavior of the PEF. Embeddedness is assumed to be captured by three different characteristics suggested by the empirical observations. Most of them influence the employment and income levels in the PEF.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 61 (2000)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://www.elsevier.com/locate/devec
Other versions of this item:
- Nyssens, Marthe & Van der Linden, Bruno, 1998. "Embeddedness, cooperation and popular-economy firms in the informal sector," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1998025, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 00 Oct 1998.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- P13 - Economic Systems - - Capitalist Systems - - - Cooperative Enterprises
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