An Enterprise Incentive Fund for Labour Mobility in the Cooperative Economy.

The purpose of this paper is to develop, within a decentralized planning framework, a system of incentive payments to firms as a means of correcting labor misallocation in an economy of labor-managed or cooperative firms. This scheme, we believe, may offer certain advantages over existing proposals.
This paper has been mostly concerned with presenting an incentive scheme to remove the inefficiency owing to labor market imperfections in the cooperative economy which has long been recognized in the literature. The significance of the incentive scheme can be seen in two ways. First, it can be considered as a decentralized planning analog to the other proposed solutions to the problem, and thus as a contribution to the theoretical analysis of the inefficiency question. Second, it can be viewed as a policy prescription. However, if this latter viewpoint is taken a number of qualifications have to be made owing to the implicit and explicit assumptions of the model we have been using. [ABSTRACT FROM AUTHOR]