This paper provides new evidence on the objectives pursued by worker-managed firms (WMFs). The basic neoclassical model assumes that WMFs maximizes net income per member instead of total profits (Ward, 1958). Even though it has been largely criticized, the Ward model has dominated the...

This article presents new econometric evidence on the comparative behavior of worker cooperatives and capitalist firms, highlighting the differences in wages and employment responses. We use a comprehensive panel data set that covers the entire population of cooperatives and their capitalist...