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Wage inequality in workers’ cooperatives and conventional firms

Nathalie Magne

European Journal of Comparative Economics, 2017, vol. 14, issue 2, 303-329

Abstract: The author evaluates the effects of democratic worker participation on the income distribution within firms. Wage inequality in French workers’ cooperatives (called SCOPs) versus traditional firms is measured using the 2001-2012 panel DADS dataset which includes all French firms. The author finds significantly lower inequality in SCOPs, in line with the previous empirical literature. Going into more detail, it appears that inequality is reduced at the top of the distribution and specifically regarding qualification-based inequalities; the gender gap and the advantage of senior workers are not lower in SCOPs. These findings contribute to the literature on Labor-Managed Firms, as well as to the broader debate on rising wage inequality in developed countries.

Keywords: Worker cooperatives; inequality; wage equation (search for similar items in EconPapers)
JEL-codes: J54 D21 J31 P13 (search for similar items in EconPapers)
Date: 2017
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European Journal of Comparative Economics is currently edited by Matteo Migheli, Giovanni Ramello, Koji Domon, Peter Grajzl, David M. Kemme, Marcello Signorelli and Richard Watt

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