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Optimal Membership, Employment, and Income Distribution in Unionized and Labor-Managed Firms

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  • Spinnewyn, Frans
  • Svejnar, Jan

Abstract

This article presents a static and dynamic intertemporal analysis of employment and income distribution in unionized and labor-managed firms. Motivated by theoretical considerations and institutional features of Western trade unions and labor-managed firms, the authors examine firms in which worker-members share the risk of layoffs by (acting as if) compensating laid-off members. In the static framework the authors show that, although the firms do not behave perversely, their behavior depends crucially on the initial membership. Since the issue of optimal initial membership has been virtually ignored in the literature, the authors analyze it next within a dynamic framework. Copyright 1990 by University of Chicago Press.

Suggested Citation

  • 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 317-340, July.
    • Handle: RePEc:ucp:jlabec:v:8:y:1990:i:3:p:317-40
    DOI: 10.1086/298225
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    Cited by:

    1. Jan K. Brueckner & Harris Selod, 2009. "A Theory of Urban Squatting and Land-Tenure Formalization in Developing Countries," American Economic Journal: Economic Policy, American Economic Association, vol. 1(1), pages 28-51, February.
    2. Kimya Kamshad, 1996. "The Dynamics of Firm Growth and Survival Under Alternative Forms of Control," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 3(3), pages 331-341.
    3. 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.
    4. Harbaugh, Rick, 2005. "The effect of employee stock ownership on wage and employment bargaining," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 565-583, September.

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