Human Capital, Property Rights, and Labour Managed Firms
AbstractAcquiring skill is costly and, in the presence of some degree of specificity, not totally transferable between firms. If it is impossible to sign complete contracts between a profit-maximizing firm and its workers, and/or the workers value future income less than do capitalists, labor-managed and profit-maximizing firms will undertake different levels of human capital investment. The authors show how skill levels and the degree of generality of training depend both on contractual arrangements and on discount factors. Workers in a labor-managed firm will tend to acquire skill that is more general and may have a higher skill level than workers employed by profit-maximizing firms. Copyright 1993 by Royal Economic Society.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 45 (1993)
Issue (Month): 2 (April)
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- Kazuhiro Ohnishi, 2013. "A Two-production-period Model with State-owned and Labour-managed Firms," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(1), pages 41-56, April.
- Smits, W., 2007. "Industry-specific or generic skills? Conflicting interests of firms and workers," Labour Economics, Elsevier, vol. 14(3), pages 653-663, June.
- Kazuhiro Ohnishi, 2009. "Capacity Investment and Mixed Duopoly with State-Owned and Labor-Managed Firms," Annals of Economics and Finance, Society for AEF, vol. 10(1), pages 49-64, May.
- Askildsen, Jan Erik & Jirjahn, Uwe & Smith, Stephen C., 2006.
"Works councils and environmental investment: Theory and evidence from German panel data,"
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- Farhauer, Oliver, 2002. "Betriebsspezifisches Humanvermögen," Discussion Papers 2002/2, Technische Universität Berlin, School of Economics and Management.
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