A study of French firms finds that labor-managed firms may use their inputs more efficiently than conventional firms.

“In several cases, no significant difference appears between the outputs a given type of firm would produce with the technology used by the cooperatives and with the conventional firms' technology. In almost all cases in which a significant difference occurs, the SCOPs would produce more with their own technology, regardless of the data set or estimation method. The exception is the GLS estimate for the Mechanical Engineering industry with Data Set 2, but the GMM estimate indicates that SCOPs would produce more with their own technology in that industry as well. In contrast, in a number of industries conventional firms would produce more using the cooperatives' technology with their current input levels. Overall, these results suggest that SCOPs are as productive as conventional firms, or more productive, and use their inputs better. Differences occur across industries, but it seems that in several industries conventional firms would be better off if they behaved like labor-managed firms”

econometric