Robert V. Crowe

Labor-Managed Firms in Yugoslavia:
An Economic and Historical Analysis

Abstract:

In my project I discuss the system of labor self-management in the country of Yugoslavia and the evolution of this system from the early 1950s to the 1980s. I explain what labor-self management is and give different visions of self-management in society which influenced the architects of Yugoslav self-management. I contrast the envisioned benefits of self-management on the national economy as well as organizational and worker behavior. I conclude that the system failed because the complex web of political intervention in the self-managed economy made it impossible for markets to function properly according to the value proportions of labor and demand, and disincentivized the firm from making decisions necessary for the survival of the firm, such as accumulating funds for research and development and investing in new technology.

Thesis Advisors: K. Pinnow and T. Nonnenmacher