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The Labor Supply of Self-Employed Workers: The Choice of Working Hours in Worker Co-ops

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  • Pencavel, John H.

    (Stanford University)

Abstract

Workers in cooperatives are self-employed workers and, if they resemble employees in conventional workplaces, they care about the length of their working hours. In this paper, their choice of hours is characterized as a conventional labor supply decision and a familiar hours-wage relationship is derived. This is estimated using mill-year observations on the plywood co-ops in the Pacific Northwest. The results are compared with those from the work behavior of other self-employed workers and with working hours in capitalist plywood mills.

Suggested Citation

  • Pencavel, John H., 2014. "The Labor Supply of Self-Employed Workers: The Choice of Working Hours in Worker Co-ops," IZA Discussion Papers 8561, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8561
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    References listed on IDEAS

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    1. Colin Camerer & Linda Babcock & George Loewenstein & Richard Thaler, 1997. "Labor Supply of New York City Cabdrivers: One Day at a Time," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 407-441.
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    6. Craig Ben & Pencavel John, 1993. "The Objectives of Worker Cooperatives," Journal of Comparative Economics, Elsevier, vol. 17(2), pages 288-308, June.
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    9. Craig, Ben & Pencavel, John, 1992. "The Behavior of Worker Cooperatives: The Plywood Companies of the Pacific Northwest," American Economic Review, American Economic Association, vol. 82(5), pages 1083-1105, December.
    10. Simon C. Parker & Yacine Belghitar & Tim Barmby, 2005. "Wage Uncertainty and the Labour Supply of Self-Employed Workers," Economic Journal, Royal Economic Society, vol. 115(502), pages 190-207, March.
    11. Fathi Fakhfakh & Virginie Pérotin & MÓnica Gago, 2012. "Productivity, Capital, and Labor in Labor-Managed and Conventional Firms: An Investigation on French Data," ILR Review, Cornell University, ILR School, vol. 65(4), pages 847-879, October.
    12. Carrington, William J & McCue, Kristin & Pierce, Brooks, 1996. "The Role of Employer-Employee Interactions in Labor Market Cycles: Evidence from the Self-Employed," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 571-602, October.
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    1. The Labor Supply of Self-Employed Workers: The Choice of Working Hours in Worker Co-ops
      by maximorossi in NEP-LTV blog on 2014-12-10 19:20:55

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    Cited by:

    1. John Pencavel, 2016. "Whose Preferences Are Revealed In Hours Of Work?," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 9-24, January.
    2. Motghare, Swapnil, 2021. "The long-run elasticity of labor supply: New evidence for New York City taxicab drivers☆," Labour Economics, Elsevier, vol. 71(C).
    3. repec:bla:annpce:v:89:y:2018:i:1:p:65-86 is not listed on IDEAS
    4. Elacqua, Gregory & Marotta, Luana, 2020. "Is working one job better than many? Assessing the impact of multiple school jobs on teacher performance in Rio de Janeiro," Economics of Education Review, Elsevier, vol. 78(C).
    5. Lechmann, Daniel S. J., 2017. "Estimating labor supply in self-employment: Pitfalls and resolutions," Discussion Papers 101, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    6. Gregory K. DOW, 2018. "The Theory Of The Labor-Managed Firm: Past, Present, And Future," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(1), pages 65-86, March.
    7. Dow,Gregory K., 2019. "The Labor-Managed Firm," Cambridge Books, Cambridge University Press, number 9781107589650, October.

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    More about this item

    Keywords

    worker co-ops; hours; labor supply;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms

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