Why are labour-managed firms so rare? An analysis of entry using UK panel data
AbstractWhy are labour-managed firms so rare in market economies? We address this question by analysing the determinants of entry. A negative binomial random effects model is used to examine a panel of UK entry data. Our main finding is a significant negative relationship between entry counts and both the capital-labour ratio and the variance of profits. This is consistent with long-standing theoretical arguments that labour-managed firms face problems in raising capital and spreading risk
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Bibliographic InfoPaper provided by Economics Division, School of Social Sciences, University of Southampton in its series Discussion Paper Series In Economics And Econometrics with number 0402.
Date of creation: 01 Oct 2003
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