Journal
ECONOMICS & SOCIOLOGY
Volume 11, Issue 2, Pages 11-18Publisher
CENTER SOCIOLOGICAL RESEARCH
DOI: 10.14254/2071-789X.2018/11-2/1
Keywords
Cooperative; Human Capital; Poverty, Social Capital; Empowerment
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In this article we investigate a simple theoretical model of cooperative organisations which are capable of enhancing its members' human capital through efficient management of all their abilities. Thus, increased human capital has impact on the household's wealth and consumption. Cooperatives can help alleviate poverty in developing countries. However, the model shows that cooperatives cannot increase the number of their members infinitely. They are constrained by managing capacity and the free-rider problem. Also, efficient cooperative is limited by its size.
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