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Review of Radical Political Economics, Vol. 29, No. 2, 45-69 (1997)
DOI: 10.1177/048661349702900203
© 1997 Union for Radical Political Economics

The Comparative Efficiency and Productivity of Labor-Managed and Capital-Managed Firms

Chris Doucouliagos

School of Economics, Faculty of Business and Law, Deakin University, 221 Burwood Highway, Burwood 3125, Victoria, Australia, douc{at}deakin.edu.au

The available empirical literature comparing the efficiency and productivity of labor-managed and capital-managed firms is reviewed and meta-analysed. The results suggest that labor-managed firms are not less efficient or less productive than capital-managed firns. Labor-managed firms have lower output-to-labor ratios and even lower capital-to-labor ratios. However, the differences in these ratios are not statistically significant. The labor-managed firm's democratic governance, industrial relations climate, and organisational setting do not appear to adversely affect productivity and efficiency


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