Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/232817 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14065
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
While most working people are in employment, there is little realisation that this relationship is inefficient and inequitable due to mis-aligned incentives – employers, as residual claimants, have an incentive to elicit greater than socially optimal effort from workers, thus generating conflict and exploitation, while workers have no 'voice' and 'exit' is costly. Workplace democracy combines efficiency and equity, aligning incentives and giving workers their natural right of self-determination, but is relatively rare due to the historically constructed power of concentrated capital owners. We show how workplace democracy can be established without expropriating capital owners, yielding efficiency and welfare gains.
Subjects: 
employment
workplace democracy
JEL: 
J
Document Type: 
Working Paper

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