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Labor-Managed Firms in Transition Economies*

Author

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  • Yochanan Shachmurove

    (Bar-Ilan University)

  • Uriel Spiegel

    (University of Pennsylvania)

Abstract

This paper investigates the transition of the LMF toward its optimal size. Once the firm has decided on the optimal number of members, the question of how to move toward that equilibrium must be addressed. The firm may not currently find itself at the optimal level for two reasons. Either the current number of members may not be optimal, or new market conditions dictate a change in the firm's optimal size. The main factors that must be considered in the move toward the optimal level are the benefits to the LMF members and the costs of transition.

Suggested Citation

  • Yochanan Shachmurove & Uriel Spiegel, 1995. "Labor-Managed Firms in Transition Economies*," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 37(1), pages 39-53, April.
    • Handle: RePEc:pal:compes:v:37:y:1995:i:1:p:39-53
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    Cited by:

    1. Yochanan Shachmurove & Tikva Leker, "undated". ""The Effects of Immigration on Socioeconomic Gaps in Labor Managed System Versus in a Competitive System''," CARESS Working Papres 98-04, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.

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