Orthodox economists argue that capitalist firms outnumber labor-managed firms (LMFs) because capitalist firms are more efficient. This paper reviews the literature on the economics of LMFs and argues that efficiency has very little to do with the dominance of capitalist firms. Capitalist firms...

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...