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

The authors compare the behavior of private firms with that of producer cooperatives in a matched sample of the two organizational types in Italy. Differences are found in labor relations, employment, pay, production methods, the relationship to the external market environment, and the level of economic performance. The authors find no significant differences in investment horizons or criteria for finance, despite theoretical assertions to the contrary. The cooperatives apparently have higher productivity, more labor-intensive production methods, lower income differentials, and a more tranquil industrial-relations environment than the private firms