Are policy measures effective in encouraging the creation of competitive employee-owned firms?

The literature highlights the positive and negative effects of employee ownership on firm performance, which are heavily dependent on the type of employee-owned firm (EOF) analysed. This article focuses on EOFs created under policy-related schemes designed to incentivize job creation, especially in times of crisis. The authors analyse performance in a large sample of a special type of EOFs in Spain and compare the results with those of a matched...