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Capitalist firm vis-a-vis trade union, versus producer cooperative

Listed author(s):
  • Istvan R. Gabor


    (Department of Human Resources, Corvinus University of Budapest)

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    By way of presenting an ahistorical fictitious story, this paper is ment to illustrate that: - in contrast to conventional wisdom, trade unions, in their symbiosis with capitalist firms, may further rather than impede price-mediated self-regulation in the labour market via their involvement in wagesetting, - whereas producer co-operatives, although they might seem to represent a close collateral of fully unionized capitalist firms, are fundamentally at variance with the logic of market self-regulation, in that they tend to respond to an increase in demand by restraining rather than extending supply, - with the consequence that they cannot even in principle be an alternative to capitalist firms, at least on a mass scale, unless combined with the adoption of some kind of bureaucratic price control.

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    Paper provided by Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences in its series Budapest Working Papers on the Labour Market with number 0405.

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    Length: 25 pages
    Date of creation: Sep 2004
    Handle: RePEc:has:bworkp:0405
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