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

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  • Chris Doucouliagos

    (School of Economics, Faculty of Business and Law, Deakin University, 221 Burwood Highway, Burwood 3125, Victoria, Australia, douc@deakin.edu.au)

Abstract

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

Suggested Citation

  • Chris Doucouliagos, 1997. "The Comparative Efficiency and Productivity of Labor-Managed and Capital-Managed Firms," Review of Radical Political Economics, Union for Radical Political Economics, vol. 29(2), pages 45-69, June.
    • Handle: RePEc:sae:reorpe:v:29:y:1997:i:2:p:45-69
    DOI: 10.1177/048661349702900203
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