Advanced Search
MyIDEAS: Login

Risk Financing in Labour Managed Economics: The Commitment Problem

Contents:

Author Info

  • Schlicht, Ekkehart
  • Weizsäcker, Carl Christian von

Abstract

Labour managed firms face some serious problems with regard to the provision of capital, especially of risk-bearing capital. These difficulties are discussed in the first part of the paper. Subsequently it is argued that these problems are rooted in the fact that the workers are insufficiently committed to the long run well-being of the labour managed firm, i.e. in the lacking of a sufficient commitment mechanism. An interchange of the roles which capital and labour play under capitalism would require tradable job rights, an arrangement which is not feasible. It is concluded therefrom that any workable labour managed economy needs a special commitment mechanism. A high rate of unemployment might serve for this purpose, or, more attractively, a reduction of labour mobility through appropriate incentives like seniority-dependent remuneration schemes.

Download Info

If 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.
File URL: http://epub.ub.uni-muenchen.de/3148/1/3148.pdf
Download Restriction: no

Bibliographic Info

Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 3148.

as in new window
Length:
Date of creation: 1977
Date of revision:
Publication status: Published in Zeitschrift für die gesamte Staatswissenschaft. Special Issue: Profit Sharing (1977): pp. 53-66
Handle: RePEc:lmu:muenar:3148

Contact details of provider:
Postal: Ludwigstr. 28, 80539 Munich, Germany
Phone: +49-(0)89-2180-3405
Fax: +49-(0)89-2180-3510
Web page: http://www.vwl.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Commitment; labour management; tradable job rights; mobility;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Francesca Gagliardi, 2009. "Financial development and the growth of cooperative firms," Small Business Economics, Springer, vol. 32(4), pages 439-464, April.
  2. Schlicht, Ekkehart, 1980. "Commitment and the Time-Span of Discretion: A Note on Elliot Jaques' Sociological Theory of Wage Differentials," Munich Reprints in Economics 3378, University of Munich, Department of Economics.
  3. Schlicht, Ekkehart, . "Job Rents in a Stylized Labor Market," Chapters in Economics, University of Munich, Department of Economics.
  4. Schlicht, Ekkehart, 1981. "Training Costs and Wage Differentials in the Theory of Job Competition," Munich Reprints in Economics 1347, University of Munich, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:lmu:muenar:3148. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexandra Frank).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.