Discussion paper

DP332 Imperfect Labour Markets, the Stock Market and the Inefficiency of Capitalism

In a capitalist economy capitalists can sell their stake in a firm on the stock market whereas workers cannot sell their jobs. It is argued that when workers have some bargaining power this asymmetry in property rights leads to inefficiencies. The consequences of this are explored and certain policy options considered.

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Citation

Manning, A (1989), ‘DP332 Imperfect Labour Markets, the Stock Market and the Inefficiency of Capitalism‘, CEPR Discussion Paper No. 332. CEPR Press, Paris & London. https://cepr.org/publications/dp332