IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-01455741.html
   My bibliography  Save this paper

What are the determinants of the pay gap between conventional firms and cooperatives? Evidence from France

Author

Listed:
  • Franck Bailly

    (LASTA - Laboratoire d'Analyse des Sociétés, Transformations et Adaptations - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

  • Karine Chapelle

    (LASTA - Laboratoire d'Analyse des Sociétés, Transformations et Adaptations - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

  • Lionel Prouteau

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

The aim of this article is to study the wage differentials between conventional firms and non-worker cooperatives, which has seldom been done in the literature to date. Using French administrative data, we analyse the determinants of these wage differentials. This investigation is carried out across all industries and it is repeated for the banking industry. Taking all industries into account, conventional firms offer lower wages than cooperatives. Most of this pay gap is explained by differences in the characteristics of the employees, jobs and companies. If we focus just on firms in the banking industry, it becomes clear that conventional firms pay higher wages than cooperatives but this gap is explained solely by differences in characteristics. However, their impact is weakened somewhat by differences in the wage return to these characteristics, which work in favour of employees in cooperatives.

Suggested Citation

  • Franck Bailly & Karine Chapelle & Lionel Prouteau, 2017. "What are the determinants of the pay gap between conventional firms and cooperatives? Evidence from France," Working Papers hal-01455741, HAL.
    • Handle: RePEc:hal:wpaper:hal-01455741
    Note: View the original document on HAL open archive server: https://hal.science/hal-01455741
    as

    Download full text from publisher

    File URL: https://hal.science/hal-01455741/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-349, June.
    2. Rasmusen, Eric, 1988. "Mutual Banks and Stock Banks," Journal of Law and Economics, University of Chicago Press, vol. 31(2), pages 395-421, October.
    3. Glenn W. Miller, 1941. "Wages and Hours in Consumers' Cooperatives in Great Britain and the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 55(2), pages 294-305.
    4. Mikko MAKINEN & Derek C. JONES, 2015. "Comparative Efficiency Between Cooperative, Savings And Commercial Banks In Europe Using The Frontier Approach," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(3), pages 401-420, September.
    5. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    6. Akella, Srinivas R. & Greenbaum, Stuart I., 1988. "Savings and loan ownership structure and expense-preference," Journal of Banking & Finance, Elsevier, vol. 12(3), pages 419-437, September.
    7. Jesús CLEMENTE & Millán DIAZ-FONCEA & Carmen MARCUELLO & Marcos SANSO-NAVARRO, 2012. "The Wage Gap Between Cooperative And Capitalist Firms: Evidence From Spain," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(3), pages 337-356, September.
    8. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    9. Michael Kopel & Marco Marini, 2014. "Strategic delegation in consumer cooperatives under mixed oligopoly," Journal of Economics, Springer, vol. 113(3), pages 275-296, November.
    10. Jean‐Noël ORY & Yasmina LEMZERI, 2012. "Efficiency And Hybridization In Cooperative Banking: The French Case," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(2), pages 215-250, June.
    11. Preston, Anne E, 1989. "The Nonprofit Worker in a For-Profit World," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 438-463, October.
    12. Mester, Loretta J., 1993. "Efficiency in the savings and loan industry," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 267-286, April.
    13. Gabriel Burdín, 2016. "Equality Under Threat by the Talented: Evidence from Worker‐Managed Firms," Economic Journal, Royal Economic Society, vol. 126(594), pages 1372-1403, August.
    14. John Pencavel, 2013. "Worker cooperatives and democratic governance," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 24, Edward Elgar Publishing.
    15. Brent Hueth & Philippe Marcoul, 2009. "Incentive Pay for CEOs in Cooperative Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1218-1223.
    16. Kroll, Mark & Wright, Peter & Theerathorn, Pochera, 1993. "Whose interests do hired top managers pursue? An examination of select mutual and stock life insurers," Journal of Business Research, Elsevier, vol. 26(2), pages 133-148, February.
    17. Zvi Lerman & Claudia Parliament, 1993. "Financing Growth in Agricultural Cooperatives," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 15(3), pages 431-441.
    18. Peter Vitaliano, 1983. "Cooperative Enterprise: An Alternative Conceptual Basis for Analyzing a Complex Institution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(5), pages 1078-1083.
    19. Stephen C. Smith & Jonathon Rothbaum, 2013. "Cooperative in a Global Economy: Key Economic Issues, Recent Trends, and Potential for Development," Working Papers 2013-6, The George Washington University, Institute for International Economic Policy.
    20. Avner Ben-Ner & Matthew Ellman, 2013. "The contributions of behavioural economics to understanding and advancing the sustainability of worker cooperatives," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 75-100, August.
    21. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
    22. Li, Feng & Hendrikse, George W.J., 2009. "CEO Compensation in Cooperatives versus Publicly Listed Firms," 2009 Conference, August 16-22, 2009, Beijing, China 51619, International Association of Agricultural Economists.
    23. John Pencavel & Luigi Pistaferri & Fabiano Schivardi, 2006. "Wages, Employment, and Capital in Capitalist and Worker-Owned Firms," ILR Review, Cornell University, ILR School, vol. 60(1), pages 23-44, October.
    24. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    25. Leonardo Becchetti & Stefano Castriota & Ermanno Tortia, 2013. "Productivity, wages and intrinsic motivations," Small Business Economics, Springer, vol. 41(2), pages 379-399, August.
    26. Burdín, Gabriel & Dean, Andrés, 2009. "New evidence on wages and employment in worker cooperatives compared with capitalist firms," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 517-533, December.
    27. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
    28. Michael Kopel & Marco Marini, 2014. "Erratum to: Strategic delegation in consumer cooperatives under mixed oligopoly," Journal of Economics, Springer, vol. 113(3), pages 297-297, November.
    29. Hervé Juvin, 2005. "Les restructurations bancaires en Europe : les banques coopératives," Revue d'Économie Financière, Programme National Persée, vol. 78(1), pages 181-206.
    30. Vera Negri Zamagni, 2012. "Interpreting the Roles and Economic Importance of Cooperative Enterprises in a Historical Perspective," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 1(1), pages 21-36, December.
    31. Novkovic, Sonja, 2008. "Defining the co-operative difference," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2168-2177, December.
    32. Mario BOSSLER & Christopher-Johannes SCHILD, 2016. "The Employment Structure Of Cooperative Banks Ð A Test Of Institutional Hypotheses," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(1), pages 79-92, December.
    33. Will Bartlett & John Cable & Saul Estrin & Derek C. Jones & Stephen C. Smith, 1992. "Labor-Managed Cooperatives and Private Firms in North Central Italy: An Empirical Comparison," ILR Review, Cornell University, ILR School, vol. 46(1), pages 103-118, October.
    34. Gorton, Gary & Schmid, Frank, 1999. "Corporate governance, ownership dispersion and efficiency: Empirical evidence from Austrian cooperative banking," Journal of Corporate Finance, Elsevier, vol. 5(2), pages 119-140, June.
    35. Bruno Jossa, 2009. "Alchian And Demsetz'S Critique Of The Cooperative Firm Thirty‐Seven Years After," Metroeconomica, Wiley Blackwell, vol. 60(4), pages 686-714, November.
    36. Jean-Noël Ory & Yasmina Lemzeri, 2012. "Efficiency and hybridization in cooperative banking: the French case," Post-Print hal-01380714, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marina Albanese & Cecilia Navarra & Ermanno Tortia, 2019. "Equilibrium unemployment as a worker insurance device: wage setting in worker owned enterprises," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 653-671, October.
    2. Federica VIGANO & Andrea SALUSTRI, 2015. "Matching profit and Non-profit Needs: How NPOs and Cooperative Contribute to Growth in Time of Crisis. A Quantitative Approach," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(1), pages 157-178, March.
    3. Mikko MAKINEN & Derek C. JONES, 2015. "Comparative Efficiency Between Cooperative, Savings And Commercial Banks In Europe Using The Frontier Approach," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(3), pages 401-420, September.
    4. Nathalie Magne, 2017. "Wage inequality in workers’ cooperatives and conventional firms," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 14(2), pages 303-329, December.
    5. Fabio Sabatini & Francesca Modena & Ermanno Tortia, 2014. "Do cooperative enterprises create social trust?," Small Business Economics, Springer, vol. 42(3), pages 621-641, March.
    6. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.
    7. Kontolaimou, Alexandra & Tsekouras, Kostas, 2010. "Are cooperatives the weakest link in European banking? A non-parametric metafrontier approach," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1946-1957, August.
    8. Jesús CLEMENTE & Millán DIAZ-FONCEA & Carmen MARCUELLO & Marcos SANSO-NAVARRO, 2012. "The Wage Gap Between Cooperative And Capitalist Firms: Evidence From Spain," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(3), pages 337-356, September.
    9. Marina Albanese & Cecilia Navarra & Ermanno Tortia, 2017. "Equilibrium unemployment as a worker insurance device: Worker insurance and wage setting in worker owned enterprises," DEM Working Papers 2017/09, Department of Economics and Management.
    10. Vassilis Monastiriotis & Angelo Martelli, 2021. "Crisis, Adjustment and Resilience in the Greek Labor Market: An Unemployment Decomposition Approach," International Regional Science Review, , vol. 44(1), pages 85-112, January.
    11. Sacchetti, Silvia & Tortia, Ermanno, 2012. "The internal and external governance of cooperatives: the effective membership and consistency of value," AICCON Working Papers 111-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    12. Bryan, Mark & Bryce, Andrew & Rice, Nigel & Roberts, Jennifer & Sechel, Cristina, 2022. "Exploring mental health disability gaps in the labour market: the UK experience during COVID-19," Labour Economics, Elsevier, vol. 78(C).
    13. Kritkorn Nawakitphaitoon & Xuan Chen & Yuhao Ge, 2016. "State and Non-state Earnings Differentials over Time in China’s Urban Labor Market: Evidence from the Urban Household Survey (1994–2007)," Journal of Labor Research, Springer, vol. 37(3), pages 287-316, September.
    14. Liu, Hong & Fang, Hai & Zhao, Zhong, 2013. "Urban–rural disparities of child health and nutritional status in China from 1989 to 2006," Economics & Human Biology, Elsevier, vol. 11(3), pages 294-309.
    15. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    16. Foster, E. Michael & Hillemeier, Marianne M. & Bai, Yu, 2011. "Explaining the disparity in placement instability among African-American and white children in child welfare: A Blinder-Oaxaca decomposition," Children and Youth Services Review, Elsevier, vol. 33(1), pages 118-125, January.
    17. Barr, Tavis & Lin, Carl, 2015. "A detailed decomposition of synthetic cohort analysis," Economics Letters, Elsevier, vol. 127(C), pages 76-80.
    18. Francesco Figari, 2012. "Cross-national differences in determinants of multiple deprivation in Europe," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(3), pages 397-418, September.
    19. Gabriel Burdín, 2014. "Are Worker-Managed Firms More Likely to Fail Than Conventional Enterprises? Evidence from Uruguay," ILR Review, Cornell University, ILR School, vol. 67(1), pages 202-238, January.
    20. Cihan Bilginsoy, 2013. "Union Wage Gap in the U.S. Construction Sector: 1983–2007," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(3), pages 677-701, July.

    More about this item

    Keywords

    cooperatives; banking cooperatives; wage; wage comparison between sectors;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-01455741. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.