Wages, Employment, and Capital in Capitalist and Worker-Owned Firms

By John Pencavel, Luigi Pistaferri, Fabiano Schivardi. Social Science Research Network, 2006

116 citations recorded by the source corpus.

The authors investigate how worker-owned and capitalist enterprises differ with respect to wages, employment, and capital in Italy, the market economy with the greatest incidence of worker-owned and worker-managed firms. Estimates calculated using a matched employer-worker panel data set for the years 1982–94 largely corroborate the implications of orthodox behavioral models of the two types of enterprise. Co-ops had 14% lower wages than capitalist enterprises, on average; more volatile wages; and less volatile employment. Given the quality of the data set analyzed, the authors argue, these results can be regarded as having broad generality.

Subfields: Strategy and Management

View Paper: https://www.semanticscholar.org/paper/243ddd02c6a0b603b649bdf9ac595f2b6ff41748

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In Strategy and Management

1. G. Burdín
2. Andrés Dean
3. Ignacio Bretos
4. Carmen Marcuello

Citations in the corpus

• New evidence on wages and employment in worker cooperatives compared with capitalist firms (2009, methodology): “We follow the strategy adopted by Pencavel et al. (2006), using two and three lagged values of Dln wit as instruments.21 We present these results in Table 5a.”
• REVISITING GLOBALIZATION CHALLENGES AND OPPORTUNITIES IN THE DEVELOPMENT OF COOPERATIVES (2017, background): “Similarly, faced with changes in economic conditions, unlike capitalist firms, worker cooperatives tend to maintain their employment levels by adjusting wage levels (Pencavel et al. 2006; Craig and Pencavel 1992).”