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Yugoslavia

In: The Performance of Labour-Managed Firms

Author

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  • Saul Estrin

Abstract

An important conclusion from the analysis of self-managed economies is that income dispersion between industries would significantly widen as a consequence of introducing such a system. This chapter examines whether the Yugoslav experience after the reforms of 1961 and 1965 (which permitted self-managed firms to operate in a market environment) conformed to these expectations. It will be shown that earnings’ differences within and between sectors widened considerably after the Reforms, even when adjustments for skill are taken into account, and that the form of labour maket misallocation after 1965 conformed to that predicted in the literature (i.e. Ward, 1958; Vanek, 1970; Meade, 1972).

Suggested Citation

  • Saul Estrin, 1982. "Yugoslavia," Palgrave Macmillan Books, in: Frank H. Stephen (ed.), The Performance of Labour-Managed Firms, chapter 2, pages 33-52, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-05721-4_2
    DOI: 10.1007/978-1-349-05721-4_2
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