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Does Gibrat's law hold among urban social economy enterprises? A research note on Montreal social economy

Author

Listed:
  • Marie Bouchard

    () (UQAM)

  • Damien Rousselière

    () (AGROCAMPUS OUEST)

Abstract

Our paper extends previous researches by taking into account the multidimensional dynamic of social economy: volunteering, employment and income. We estimate a Cragg's model with a simultaneous growth equations system and a hurdle equation on the two waves of the Montreal survey on social economy. Our main empirical results are twofold: First we highlight an average decrease in income and employment (although with an increase in volunteering) for the whole population. Second, our model allows us to reject the Gibrat's Law for our urban social economy enterprises population. It is as if there is an apparent convergence effect with three different growth trajectories for the various organizational forms of the social economy. The largest organizations seem to suffer more from the crisis than the smaller ones, even if the latter are more exposed to the hazard of disappearing.

Suggested Citation

  • Marie Bouchard & Damien Rousselière, 2018. "Does Gibrat's law hold among urban social economy enterprises? A research note on Montreal social economy," Economics Bulletin, AccessEcon, vol. 38(3), pages 1523-1540.
  • Handle: RePEc:ebl:ecbull:eb-17-00591
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Cooperatives; Cragg's Model; Gibrat's Law; Growth; Montreal; Nonprofit Organizations; Social Economy;

    JEL classification:

    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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