Abstract
Two of the most serious problems faced both by the advanced industrial societies and by developing ones are high levels of unemployment and slow productivity growth. Innovative solutions to these problems are scarce, yet recent evidence has suggested that a traditional organisation, the worker or producer co-operative, may provide greater productivity and employment than other types of enterprises with similar products and levels of output. The purpose of this paper is to present some of the evidence as well as to suggest how the intrinsic behaviour of the cooperative firm may create a potential for increasing employment and productivity.
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