Worker-managed firms can curb inequality and protect free markets

CEPR VoxEU (institute research) · 7 Oct 2026

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Will AI widen inequality? · its finding supports the claim (why studies differ)

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Rising income inequality in Western high-income countries threatens democratic governance and social cohesion, and AI risks making it worse. Drawing on a forthcoming book, this column argues for worker-managed firms as a durable remedy. With no external owners taking profits, worker cooperatives protect against the rising bargaining power of employers and provide an enhanced sense of self-worth and self-determination for employees. Furthermore, the data suggest that well-designed worker cooperatives compete with conventional firms in free markets with no evidence of a productivity gap. Because they are underprovided by the market, it calls for government action to support worker cooperatives.

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Lab or institute research, not peer reviewed. A report or blog post published by an AI lab or research institute on its own site. It has not been through independent peer review, and the publisher may have a stake in the findings.

Published: 2026 (recently)
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Worker-managed firms can curb inequality and protect free markets

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