Cooperative Production with Unequal Skills: The Solidarity Approach to Compensation

Posted: 16 Nov 1999

See all articles by Marc Fleurbaey

Marc Fleurbaey

Princeton University - Princeton School of Public and International Affairs

Francois Maniquet

Fonds National de la Recherche Scientifique

Abstract

We consider a simple production model and we assume that agents have unequal production skills which can in no way be attributed to their responsibility. We study how it is possible, if at all, to compensate for differential skills by applying Rawls's idea of a collective sharing in the benefits of skills. For this purpose, we introduce an axiom of solidarity, according to which agents should all be affected in the same direction if the profile of personal skills changes. We show that particular allocation rules are characterized be combining this axiom with a requirement of non-discrimination among preferences, or with a property capturing Nozick's idea of guaranteeing a minimal benefit from one's own skill.

JEL Classification: D24, D60

Suggested Citation

Fleurbaey, Marc and Maniquet, Francois, Cooperative Production with Unequal Skills: The Solidarity Approach to Compensation. Available at SSRN: https://ssrn.com/abstract=179773

Marc Fleurbaey (Contact Author)

Princeton University - Princeton School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States

Francois Maniquet

Fonds National de la Recherche Scientifique ( email )

Rempart de la Vierge 8
Namur B-5000
Belgium

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