Labor-managed firms in transition economies

Yochanan Shachmurove, U. Spiegel

Research output: Contribution to journalArticlepeer-review


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. We thank our colleagues at the University of Pennsylvania: Jere Behrman, Bill Ethier, Lawrence Klein, and Herb Levine, as well as two referees and the Editor. An earlier version of this paper was presented at the “International Conference on Theoretical and Applied Aspects of Labor-Managed Firms,” May 25–28,1992, Bar-Ilan University, Ramat-Gan, Israel. This paper is dedicated to the memory of Paul Taubman.
Original languageAmerican English
Pages (from-to)39-53
JournalComparative Economic Studies
Issue number1
StatePublished - 1995


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