Workplace Democracy and Job Flows

26 Pages Posted: 25 Oct 2014

See all articles by Guillermo Alves

Guillermo Alves

Universidad de la Republica

Gabriel Burdin

University of Leeds - Faculty of Business; IZA Institute of Labor Economics

Andrés Dean

Universidad de la Republica - Instituto de Economía

Abstract

This paper investigates the relationship between workplace democracy and job flows (net job creations, gross job creations and destructions) by comparing the behavior of worker-managed firms (WMFs) and conventional firms. The empirical analysis relies on high frequency administrative firm-level panel data from Uruguay over the period April 1996-July 2009. The main findings of the paper are that (1) WMFs exhibit much more stable job dynamics than CFs; (2) both types of firms have decreasing in age and increasing in size gross job creation profiles; (3) there are heterogeneous employment regimes within WMFs: high job creation and destruction rates of hired workers and low job creation and destruction of members. This paper contributes to the literature on the role of institutions in shaping job flows. Our results may have important implications for the understanding of the allocative efficiency effects of worker participation.

Keywords: job flows, worker-managed firms

JEL Classification: D21, J54, J63

Suggested Citation

Alves, Guillermo and Burdin, Gabriel and Dean, Andrés, Workplace Democracy and Job Flows. IZA Discussion Paper No. 8539, Available at SSRN: https://ssrn.com/abstract=2514732 or http://dx.doi.org/10.2139/ssrn.2514732

Guillermo Alves (Contact Author)

Universidad de la Republica ( email )

Gonzalo Ramirez 1926
Montevideo, 11200
Uruguay

Gabriel Burdin

University of Leeds - Faculty of Business ( email )

Leeds LS2 9JT
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Andrés Dean

Universidad de la Republica - Instituto de Economía ( email )

Uruguay

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