DP332 Imperfect Labour Markets, the Stock Market and the Inefficiency of Capitalism
|Publication Date:||August 1989|
|Keyword(s):||Capitalism, Collective Bargaining, Labour Markets, Stock Market|
|Programme Areas:||Applied Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=332|
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.