The economics and finance of dividend-based labor remuneration and tradable shares in worker cooperatives

Ermanno Tortia

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the economic and financial implications of implementing a comprehensive system of dividend-based labor compensation for members of worker cooperatives. The economic implications, as presented in the existing literature, are discussed at both the microeconomic and macroeconomic levels, as already presented prominently in the work of James Meade and Martin Weitzman. The financial implications concern the creation of a clear link between dividend-based remuneration and the financial position of worker-members as owners of a cooperative's capital; the alignment of interests between worker-members and non-member financial investors when creating a true cooperative share market; and the decoupling of financial participation of members and non-members from control rights (cooperative shares would be non-voting) to protect the formal and substantive role of the mutualistic ‘one member, one vote’ principle of democratic governance.

Keywords: Dividend-based labor remuneration; undercapitalization; cooperative shares; interest alignment; cooperative property rights; mutualistic governance (search for similar items in EconPapers)
JEL-codes: D21 D23 D24 G32 G35 (search for similar items in EconPapers)
Date: 2025-07-29
New Economics Papers: this item is included in nep-hme
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