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 1 January 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… 

Do successful worker-managed firms degenerate?

Survival advantage of worker buyouts over newly created worker-owned firms

TLDR
The current study confirms that WBOs, even of conventional firms in difficulty, have on average a survival advantage over newly created WOFs, and shows that this survival advantage is similar across sectors with different knowledge intensity but is lower in high capital- intensive sectors than in low capital-intensive ones.

Employment and Wages over the Business Cycle in Worker‐Owned Firms: Evidence from Spain*

This paper compares worker-owned firms and mainstream capital-owned enterprises over the business cycle. Specifically, I study whether conventional employees in worker-owned firms enjoy greater

Employment and Wages over the Business Cycle in Worker-Owned Firms: Evidence from Spain

This paper compares worker-owned firms and mainstream capital-owned enterprises over the business cycle. Specifically, I study whether conventional employees in worker-owned firms enjoy greater

Las cooperativas de trabajadores degeneran

The degeneration hypothesis in labor-managed firms (LMFs) was originally formalized by the seminal contributions of Ben-Ner (1984) and Miyazaki (1984). Within these models, LMFs are collectively

Why Isn't Uber Worker-Managed? A Model of Digital Platform Cooperatives

Thanks to algorithmic management, the digital platform sector does not require sophisticated governance structures and labour intensity tends to be higher than in traditional sectors. So, why aren’t

Comparative Efficiency of Agricultural Cooperatives and Conventional Firms in a Sample of Quasi‐Twin Companies

We investigate the comparative technical efficiency of producer cooperatives (PCs) and conventional firms (CFs) by looking at the performance of a mixed sample of Sardinian wine producing companies

Employer Moral Hazard, Wage Rigidity, and Worker Cooperatives: A Theoretical Appraisal

We study the impact of employer's opportunism on wage rigidity in capitalist companies by arguing that the need to fix wages is crucially influenced by the asymmetric distribution of decision-making

The Theory of the Labor‐Managed Firm: Past, Present, and Future

The economic theory of the labor-managed firm dates back 60 years. Here I review the intellectual history of this field, with critical remarks and proposals for future development. The decades of the
...

References

SHOWING 1-10 OF 86 REFERENCES

Productivity, Capital, and Labor in Labor-Managed and Conventional Firms: An Investigation on French Data

Using two new data sets from France, the authors present the first study of the comparative productivity of labor-managed and conventional firms involving large representative samples of firms in a

Comparative analysis of firm demographics and survival: evidence from micro-level sources in OECD countries

In this paper, we present cross-country evidence on firm size distribution, firm demographic and post-entry performance for 10 OECD countries. We use harmonized firm-level data drawn from business

Las cooperativas de trabajadores degeneran

The degeneration hypothesis in labor-managed firms (LMFs) was originally formalized by the seminal contributions of Ben-Ner (1984) and Miyazaki (1984). Within these models, LMFs are collectively

Economic Impacts of Unionization on Private Sector Employers: 1984-2001

Economic impacts of unionization on employers are difficult to estimate in the absence of large, representative data on establishments with union status information. Estimates are also confounded by

Labor-Managed Cooperatives and Private Firms in North Central Italy: An Empirical Comparison

The authors analyze the differences between the behavior of private firms and that of producer cooperatives in a matched sample of the two organizational types from the regions of Emilia Romagna and
...