Are Worker-Managed Firms More Likely to Fail Than Conventional Enterprises? Evidence from Uruguay

@article{Burdn2014AreWF,
  title={Are Worker-Managed Firms More Likely to Fail Than Conventional Enterprises? Evidence from Uruguay},
  author={Gabriel Burd{\'i}n},
  journal={Industrial \& Labor Relations Review},
  year={2014},
  volume={67},
  pages={202 - 238}
}
  • G. Burdín
  • Published 2014
  • Economics
  • Industrial & Labor Relations Review
Various theories suggest that worker-managed firms (WMFs) are prone to failure in competitive environments. Using a long panel of Uruguayan firms, the author presents new evidence on firm survival by comparing WMFs with conventional firms. After excluding microenterprises and controlling for differences in the effective tax burden faced by the two types of firms, the hazard of dissolution is 29% lower for WMFs than for conventional firms. This result is robust to alternative estimation… Expand
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