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The Labor Supply Of Self-Employed Workers: The Choice Of Working Hours In Worker Co-Ops

Aug 2014
Working Paper
By  John Pencavel
If workers in cooperatives are like workers in conventional workplaces, they care about the length of their working hours. In this paper, their choice of hours is characterized as a conventional labor supply decision and a familiar hours-wage relationship is derived. This is estimated using mill-year observations on the plywood co-ops in the Pacific Northwest. The results are compared with those from the labor supply behavior of self-employed workers and with those in capitalist plywood mills.