The following article presents new econometric evidence on comparative behavior between worker cooperatives and capitalist firms, identifying differences in wage and employment responses. We exploit a comprehensive panel data set that covers the universe of cooperatives and their capitalist...

The theoretical discussion concerning the comparison of employment and wage decisions between capitalist firms and worker cooperatives began with the seminal work of Ward (1958). The model assumes that worker cooperatives maximizes the net income per member instead of total profits. Even though...