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The economics of worker cooperatives is a branch of economic
inquiry with a long and esteemed pedigree, dating at least from the
work of John Stuart Mill in the mid-nineteenth century. Since then,
leading economists have paid intermittent attention to the topic,
but the collapse of state-sponsored socialism in Eastern Europe and
growing discontent with loosely-fettered capitalism have resulted
in a resurgence of interest in worker co-operatives as a method of
enhancing productivity and reducing income inequalities without
heavy government regulation. Professor Pencavel's judicious
selection of articles by leading scholars conveys the vigour and
rigour of this new empirical research. His original introduction
provides an authoritative guide to past and current thinking in
this topical area and raises important issues, which point the way
for further contributions to the already rich literature.
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