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

John Pencavel, Stanford University
Luigi Pistaferri, Stanford University
Fabiano Schivardi, Bank of Italy

Abstract

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.

Recommended Citation

Pencavel, John; Pistaferri, Luigi; and Schivardi, Fabiano (2007) "Wages, Employment, and Capital in Capitalist and Worker-Owned Firms," Industrial & Labor Relations Review, Vol. 60, No. 1, article 2.
Available at: http://digitalcommons.ilr.cornell.edu/ilrreview/vol60/iss1/2