Allocation and distribution in an employee-owned firm under both output and labor market uncertainty
Main Article Content
Abstract
This paper examines the effects of risk in output and labor markets on membership, employment, layoff and layoff compensation determination in a risk-averse employee-owned firm. Expected incomes of working and furloughed member owners are shown to be equal only when income variances are equal; otherwise the group subject to the higher income variance receives higher mean income. The extent to which average member incomes exceed value marginal product is shown to be related linearly to price variance and risk aversion. Comparative static implications of effects of changes in price and unemployment income means and variances among others, are derived. The results are related to previous theoretical and empirical findings on the labor-managed firm, and found to strongly qualify previous studies.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Once the manuscript is accepted for publication, authors shall transfer the copyright to the publisher. If the submitted manuscript is not accepted for printing by the journal, the authors shall retain all their rights. The following rights on the manuscript are transferred to the publisher, including any supplementary materials and any parts, extracts or elements of the manuscript:
- the right to reproduce and distribute the manuscript in printed form, including print-on-demand;
- the right to print prepublications, reprints and special editions of the manuscript;
- the right to translate the manuscript into other languages;
- the right to reproduce the manuscript using photomechanical or similar means including, but not limited to photocopy, and the right to distribute these copies;
- the right to reproduce and distribute the manuscript electronically or optically using and all data carriers or storage media, and especially in machine readable/digitalized form on data carriers such as hard drive, CD-ROM, DVD, Blu-ray Disc (BD), Mini Disc, data tapes, and the right to reproduce and distribute the article via these data carriers;
- the right to store the manuscript in databases, including online databases, as well as the right to transmit the manuscript in all technical systems and modes;
- the right to make the manuscript available to the public or to closed user groups on individual demand, for use on monitors or other readers (including e-books), and in printable form for the user, either via the Internet, online service, or via internal or external networks.