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Labour Participation in Different Firm Organisations

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  • Michele Moretto

    (University of Padova)

  • Gianpaolo Rossini

    (University of Bologna)

Abstract

The main issue is the organisation of firms when different degrees of labour participation are taken into account. We start reviewing the literature on the LM firm. We then consider a less radical labour participation, i.e. the Aoki firm. We survey extensions of the Aoki's firm to the case of market uncertainty, where also the question of the optimal allocation of the shut down decision is tackled, when shareholders are not able to maximise the total payoff accruing to both workers and owners. By and large, it appears that the degree of labour participation in decisions and rent sharing in a firm is not a settled question, even though is seems to depend on the respective degree of firm specificities of production factors.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 1999.29.

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Date of creation: Mar 1999
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Handle: RePEc:fem:femwpa:1999.29

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Keywords: Labour participation; Firm organisation;

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Cited by:
  1. Gary Gorton & Frank Schmid, 2000. "Class Struggle Inside the Firm: A Study of German Codetermination," Center for Financial Institutions Working Papers, Wharton School Center for Financial Institutions, University of Pennsylvania 00-36, Wharton School Center for Financial Institutions, University of Pennsylvania.

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