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Property Rights and Incentives in Social Cooperatives

In: Paid and Unpaid Labour in the Social Economy. An International Perspective

Author

Listed:
  • Marco Musella

    (Università di Napoli Federico II)

  • Roberta Troisi

    (Università di Salerno)

Abstract

This paper analyses Italian social cooperatives as a typical delivery service firm focusing on employee incentive systems characterized by “role tension” linked to the dual position of being employee and owner at the same time. In line with this idea, the answers to three questions: “Why to incentivise”, “What to incentivise” “How to incentivise” are searched starting from both the lack of employee’s controllability in the sector and reconstruction of the property rights which could be consistent with the characteristics of social cooperatives and with the nonprofit distribution constraint. The conclusion is that, because social cooperatives are able to structure a richer incentive set, they are more efficient in the provision of social utility services even though they pay lower wages than public organizations and for-profit firms.

Suggested Citation

  • Marco Musella & Roberta Troisi, 2009. "Property Rights and Incentives in Social Cooperatives," AIEL Series in Labour Economics, in: Marco Musella & Sergio Destefanis (ed.), Paid and Unpaid Labour in the Social Economy. An International Perspective, edition 1, chapter 4, pages 47-61, AIEL - Associazione Italiana Economisti del Lavoro.
    • Handle: RePEc:ail:chapts:03-04
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    More about this item

    Keywords

    property rights; worker incentives; social cooperatives.;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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