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Embeddedness, cooperation and popular-economy firms in the informal sector

Author

Listed:
  • Nyssens, Marthe

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • Van der Linden, Bruno

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) ; Belgian National Fund for Scientific Research (FNRS))

Abstract

This paper is motivated by empirical observations on popular-economy firms (PEFs) in the informal sector of Santiago de Chile. These are labor-managed firms embedded in popular milieu where cooperation between their members plays a central role. This paper develops a (partial equilibrium) microeconomic theory of PEFs. First, it endogeneizes the level of cooperation between the workers. Second, it develops a static and a dynamic model to analyze whether embeddedness influences the behavior of the PEF. Embeddedness is assumed to be captured by three different characteristics suggested by the empirical observations. Most of them influence the employment and income levels in the PEF.

Suggested Citation

  • Nyssens, Marthe & Van der Linden, Bruno, 1998. "Embeddedness, cooperation and popular-economy firms in the informal sector," LIDAM Discussion Papers IRES 1998025, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 00 Oct 1998.
    • Handle: RePEc:ctl:louvir:1998025
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    Cited by:

    1. Alper Duman, 2009. "Comparative Analysis of Organizational Forms in the Software Industry and Legal Services," Working Papers 0903, Izmir University of Economics.
    2. Bauwens, Thomas & Lemaître, Andreia, 2014. "Popular Economy in Santiago de Chile: State of Affairs and Challenges," World Development, Elsevier, vol. 64(C), pages 65-78.

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    More about this item

    Keywords

    embeddedness; cooperation; labor-managed firms; Popular-economy firm;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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