Appropriability of Returns in the Yugoslav Firm
The paper argrues that Yugoslav workers only appeared to be residual claimants in the 1970s and 1980s. Political elites, in blatant violation of the proclaimed autonomy of workers, set workers' earnings with the clear goal of evening out differences among firms. They achieved this through a pervasive and massive redistribution of income, implemented through discretionary taxation and subsidization of enterprises. The nonappropriability of returns was a hallmark of the system. Inferences based on analyses of the Yugoslav system as labor-managed are thus unwarranted.
Volume (Year): 20 (1994)
Issue (Month): 3 (Summer)
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