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Unemployment and Workers' Control

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  • Chris Doucouliagos

Abstract

The relationship between democratic workers' control and unemployment is explored. When unemployment arises from labor market distortions, market imperfections, or from information imperfections, labor-managed firms are superior to capitalist firms. The firm's governance and decision making structures then play an instrumental role in the level of unemployment. However, when involuntary unemployment arises from effective demand failures, then workers' control may not be able to maintain or to restore full employment. In such cases, collective and coordinated efforts are needed to reduce the level of involuntary unemployment.

Suggested Citation

  • Chris Doucouliagos, 1997. "Unemployment and Workers' Control," Review of Political Economy, Taylor & Francis Journals, vol. 9(2), pages 151-179.
    • Handle: RePEc:taf:revpoe:v:9:y:1997:i:2:p:151-179
    DOI: 10.1080/09538259700000032
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    References listed on IDEAS

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    1. Paul Davidson, 1994. "Post Keynesian Macroeconomic Theory," Books, Edward Elgar Publishing, number 124.
    2. Assar Lindbeck & Dennis J. Snower, 1989. "The Insider-Outsider Theory of Employment and Unemployment," MIT Press Books, The MIT Press, edition 1, volume 1, number 026262074x, December.
    3. Philip Arestis, 1992. "The Post-Keynesian Approach to Economics," Books, Edward Elgar Publishing, number 16.
    4. Paul Davidson, 1991. "Controversies in Post Keynesian Economics," Books, Edward Elgar Publishing, number 121.
    5. Carl Davidson, 1990. "Recent Developments in the Theory of Involuntary Unemployment," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number rdtiu, November.
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