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Property Rights, Asset Specificity, and the Division of Labour under Alternative Capitalist Relations

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Author Info
Pagano, Ugo

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Abstract

Is the division of labor under capitalism because of transaction and technological efficiency or because of inefficient capitalist property rights? The answer of this paper is that under "classical" capitalism there is an inefficient division of labor because of underinvestment in asset-specific labor which can be improved by expanding workers' rights in two different ways defining "company workers" and "unionized" capitalism. An implication of the analysis is that markets, far from being the selection mechanism where efficient institutions evolve, may imply the reproduction of inefficient property rights and be shaped by them. Copyright 1991 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 15 (1991)
Issue (Month): 3 (September)
Pages: 315-42
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Handle: RePEc:oup:cambje:v:15:y:1991:i:3:p:315-42

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  1. Alberto Battistini, 2007. "Surplus-Value, Distribution and Exploitation," Department of Economics University of Siena 518, Department of Economics, University of Siena. [Downloadable!]
  2. Sauro Mocetti, 2004. "Social Protection and Human Capital: Test of a Hypothesis," Department of Economics University of Siena 425, Department of Economics, University of Siena. [Downloadable!]
  3. Metin M. Cosgel & Thomas J. Miceli, 1998. "On Job Rotation," Working papers 1998-02, University of Connecticut, Department of Economics. [Downloadable!]
  4. Samuel Bowles, 2000. "Globalization and Redistribution: Feasible Egalitarianism in a Competitive World," Working Papers wp34, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
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