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Wage inequality workers' cooperatives and conventional firms

Author

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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)

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.

Suggested Citation

  • Nathalie Magne, 2017. "Wage inequality workers' cooperatives and conventional firms," Post-Print halshs-01961811, HAL.
    • Handle: RePEc:hal:journl:halshs-01961811
    DOI: 10.25428/1824-2979/201702-303-329
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    Cited by:

    1. Bonache, Jaime & Zárraga-Oberty, Celia, 2020. "Compensating international mobility in a workers’ cooperative: An interpretive study," Journal of World Business, Elsevier, vol. 55(5).
    2. Burdin, Gabriel & Garcia-Louzao, Jose, 2023. "Employee-Owned Firms and the Careers of Young Workers," IZA Discussion Papers 15880, Institute of Labor Economics (IZA).
    3. Thomas Lamarche & Catherine Bodet, 2020. "Les coopératives comme espaces méso critiques," Working Papers hal-02462804, HAL.

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