The largest study comparing the productivity of worker co-operatives with that of conventional businesses finds that in several industries, conventional companies would produce more with their current levels of employment and capital if they behaved like employee-owned firms. When market conditions change worker cooperatives review wages first and keep employment more stable. In a downturn worker co-operatives drop wages rather than reducing their workforce. When business picks up they are ready to respond and can make up for lost pay because employees enjoy a share of profit. The main findings from the analysis and review are: • Worker co-operatives are larger than conventional businesses and not necessarily less capital intensive • Worker co-operatives survive at least as long as other businesses and have more stable employment • Worker cooperatives are more productive than conventional businesses, with staff working “better and smarter” and production organised more efficiently • Worker co-operatives retain a larger share of their profits than other business models • Executive and non-executive pay differentials are much narrower in worker co-operatives than other firms