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Do labour-managed firms benefit from agglomeration?

  • Arando, Saioa
  • Gago, Monica
  • Podivinsky, Jan M.
  • Stewart, Geoff

Panel data on the entry of labour-managed firms in the Basque Country are used to test for the presence of agglomeration externalities. A variety of controls are employed to deal with the identification problem that confronts any attempt to measure such effects. Consistent with theoretical arguments, we find evidence of positive non-industry-specific externalities among labour-managed firms. Our results do not rule out the additional presence of industry-specific externalities among such firms, but do indicate an absence of externalities flowing from capitalist to labour-managed firms.

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Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 84 (2012)
Issue (Month): 1 ()
Pages: 193-200

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Handle: RePEc:eee:jeborg:v:84:y:2012:i:1:p:193-200
Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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