This paper argues the conjecture that worker cooperatives (WCs) are rare because of competitive disadvantages relative to conventionally-owned firms (CFs) is not supported by existing research. It surveys research on the survival and failure of WCs and CFs and estimates the nonparametric hazard and survival functions for CFs in the US. Because the rarity of WCs cannot be attributed to performance it must result from a low formation rate.

To what extent do workers exert control within the workplace, and exercise voice in how the income generated by firms is distributed? And do they have ownership—not just in an affective sense, but in terms of share holdings or membership rights? The financial crisis opened up widespread discussion about prevailing modes of economic organization. But, for the most part, this discussion has been quite narrowly bounded, oscillating between two familiar poles. This paper tries to contribute to such a conversation by offering a macro-comparative backdrop.