Wage inequality workers' cooperatives and conventional firms

Nathalie Magne ()
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Nathalie Magne: UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique

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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.

Date: 2017-12-01
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Published in The European Journal of Comparative Economics, 2017, 14 (2), pp.303-329. ⟨10.25428/1824-2979/201702-303-329⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01961811

DOI: 10.25428/1824-2979/201702-303-329

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