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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 1998025.
Date of creation: 01 Dec 1998
Date of revision: 00 Oct 1998
embeddedness; cooperation; labor-managed firms; Popular-economy firm;
Other versions of this item:
- Nyssens, Marthe & Van der Linden, Bruno, 2000. "Embeddedness, cooperation and popular-economy firms in the informal sector," Journal of Development Economics, Elsevier, vol. 61(1), pages 175-204, February.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-02-10 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Huizinga, F & Schiantarelli, Fabio, 1992. "Dynamics and Asymmetric Adjustment in Insider-Outsider Models," Economic Journal, Royal Economic Society, vol. 102(415), pages 1451-66, November.
- Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
- Ernst Fehr & Georg Kirchsteiger, 2003.
"Insider Power, Wage Discrimination, and Fairness,"
Labor and Demography
- Kahana, Nava & Nitzan, Shmuel, 1989. "More on alternative objectives of labor-managed firms," Journal of Comparative Economics, Elsevier, vol. 13(4), pages 527-538, December.
- Sherwin Rosen, 1985.
"Implicit Contracts: A Survey,"
NBER Working Papers
1635, National Bureau of Economic Research, Inc.
- Bonin, John P, 1984. "Membership and Employment in an Egalitarian Cooperative," Economica, London School of Economics and Political Science, vol. 51(23), pages 295-305, August.
- Ben Rogaly, 1997. "Embedded markets: Hired labour arrangements in west Bengal agriculture," Oxford Development Studies, Taylor & Francis Journals, vol. 25(2), pages 209-223.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Will Bartlett & Saul Estrin & John Cable & Stephen Smith, 1992. "Labor-managed cooperatives and private firms in north central Italy: An empirical comparison," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 103-118, October.
- Brewer, Anthony A & Browning, Martin J, 1982. "On the 'Employment' Decision of a Labour-Managed Firm," Economica, London School of Economics and Political Science, vol. 49(194), pages 141-46, May.
- Kidd, David P & Oswald, Andrew J, 1987. "A Dynamic Model of Trade Union Behaviour," Economica, London School of Economics and Political Science, vol. 54(215), pages 355-65, August.
- Jones, Stephen R G & McKenna, C J, 1994. "A Dynamic Model of Union Membership and Employment," Economica, London School of Economics and Political Science, vol. 61(242), pages 179-89, May.
- Jones, Stephen R. G., 1987. "Union membership and employment dynamics," Economics Letters, Elsevier, vol. 25(2), pages 197-200.
- Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834.
- Herbert A. Simon, 1992.
"Altruism and Economics,"
Eastern Economic Journal,
Eastern Economic Association, vol. 18(1), pages 73-83, Winter.
- Kahana, Nava & Nitzan, Shmuel, 1993. "The Theory of the Labour-Managed Firm Revisited: The Voluntary Interactive Approach," Economic Journal, Royal Economic Society, vol. 103(419), pages 937-45, July.
- Steinherr, A. & Thisse, J. -F., 1979. "Are labor-managers really perverse?," Economics Letters, Elsevier, vol. 2(2), pages 137-142.
- Spinnewyn, Frans & Svejnar, Jan, 1990. "Optimal Membership, Employment, and Income Distribution in Unionized and Labor-Managed Firms," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 317-40, July.
- Carruth, Alan A & Oswald, Andrew J, 1987. "On Union Preferences and Labour Market Models: Insiders and Outsi ders," Economic Journal, Royal Economic Society, vol. 97(386), pages 431-45, June.
- Georges Christophre, 1994. "A Dynamic Macroeconomic Model of the Labor-Managed Economy," Journal of Comparative Economics, Elsevier, vol. 18(1), pages 46-63, February.
- Estrin, Saul & Jones, Derek C. & Svejnar, Jan, 1987. "The productivity effects of worker participation: Producer cooperatives in western economies," Journal of Comparative Economics, Elsevier, vol. 11(1), pages 40-61, March.
- Caputo, Michael R., 1992. "Comparative dynamics in the labor-managed model of the firm," Journal of Comparative Economics, Elsevier, vol. 16(2), pages 272-286, June.
- Philippe Hugon, 1996. "Incertitude, précarité et financement local : le cas des économies africaines," Revue Tiers Monde, Programme National Persée, vol. 37(145), pages 13-40.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne DAVISTER-LOGIST).
If references are entirely missing, you can add them using this form.