IDEAS home Printed from https://ideas.repec.org/p/ulr/wpaper/dt-01-14.html
   My bibliography  Save this paper

¿Las cooperativas de trabajadores degeneran?

Author

Listed:
  • Andrés Dean

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

Abstract

The degeneration hypothesis in labor-managed firms (LMFs) was originally formalized by the seminal contributions of Ben-Ner (1984) and Miyazaki (1984). Within these models, LMFs are collectively owned by workers-members who can hire employees from the labor market. The pursuit of efficiency or higher incomes would induce the successful coops to become more entrepreneurial and gradually disintegrate the labor-managed economies. Although it has been largely discussed, these models have rarely been contrasted empirically. This research presents new econometric evidence on the behavior of labor-managed firms, highlighting the differences within the firm between members and non-members. We use a comprehensive panel data set that covers the entire population of cooperative workers (members and employees) registered in the social security records in Uruguay from January 1997 to April 2010. We analyze the data to study the determinants of employees hiring in producer cooperatives and test the degeneration hypothesis, particularly the Ben-Ner's and Miyazaki's version. Our evidence suggests that Uruguayan labor-managed firms do not exhibit the kind of degeneration process suggested by the theoretical literature. We also consider the incidence in these results of the institutional framework and some specific features of Uruguayan coops. As studies of this kind are so few, our research provides a significant contribution to the empirical literature on labor managed firms.

Suggested Citation

  • Andrés Dean, 2014. "¿Las cooperativas de trabajadores degeneran?," Documentos de Trabajo (working papers) 14-01, Instituto de Economía - IECON.
    • Handle: RePEc:ulr:wpaper:dt-01-14
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/20.500.12008/4252
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Burdin, Gabriel, 2013. "Are Worker-Managed Firms Really More Likely to Fail?," IZA Discussion Papers 7412, Institute of Labor Economics (IZA).
    2. Ben-ner, Avner, 1984. "On the stability of the cooperative type of organization," Journal of Comparative Economics, Elsevier, vol. 8(3), pages 247-260, September.
    3. Jonathan S. Leonard & David I. Levine, 2006. "The Effect of Diversity on Turnover: A Large Case Study," ILR Review, Cornell University, ILR School, vol. 59(4), pages 547-572, July.
    4. Saul Estrin & Derek C. Jones, 1992. "The Viability of Employee-Owned Firms: Evidence from France," ILR Review, Cornell University, ILR School, vol. 45(2), pages 323-338, January.
    5. Burdín, Gabriel & Dean, Andrés, 2012. "Revisiting the objectives of worker-managed firms: An empirical assessment," Economic Systems, Elsevier, vol. 36(1), pages 158-171.
    6. John Pencavel, 2013. "Worker cooperatives and democratic governance," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 24, Edward Elgar Publishing.
    7. Pencavel, John & Craig, Ben, 1994. "The Empirical Performance of Orthodox Models of the Firm: Conventional Firms and Worker Cooperatives," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 718-744, August.
    8. Craig, Ben & Pencavel, John, 1992. "The Behavior of Worker Cooperatives: The Plywood Companies of the Pacific Northwest," American Economic Review, American Economic Association, vol. 82(5), pages 1083-1105, December.
    9. Guillermo Alves & Gabriel Burdin & Paula Carrasco & Andrés Dean & Andrés Rius, 2012. "Empleo, remuneraciones e inversión en cooperativas de trabajadores y empresas convencionales: nueva evidencia para Uruguay," Documentos de Trabajo (working papers) 12-14, Instituto de Economía - IECON.
    10. Dow,Gregory K., 2003. "Governing the Firm," Cambridge Books, Cambridge University Press, number 9780521522212, September.
    11. 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.
    12. Derek C. Jones & Panu Kalmi, 2012. "Economies of Scale Versus Participation: a Co-operative Dilemma?," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 1(1), pages 37-64, December.
    13. Berman, Katrina V. & Berman, Matthew D., 1989. "An empirical test of the theory of the labor-managed firm," Journal of Comparative Economics, Elsevier, vol. 13(2), pages 281-300, June.
    14. Ben-ner, Avner, 1988. "The life cycle of worker-owned firms in market economies : A theoretical analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 10(3), pages 287-313, October.
    15. Chris Doucouliagos, 1990. "Why Capitalist Firms Outnumber Labor-Managed Firms," Review of Radical Political Economics, Union for Radical Political Economics, vol. 22(4), pages 44-66, December.
    16. Ben-Ner Avner & Montias John Michael & Neuberger Egon, 1993. "Basic Issues in Organizations: A Comparative Perspective," Journal of Comparative Economics, Elsevier, vol. 17(2), pages 207-242, June.
    17. 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.
    18. Panu Kalmi, 2004. "Exclusion From Employee Ownership: Evidence From Estonian Case Studies," Advances in the Economic Analysis of Participatory & Labor-Managed Firms, in: Employee Participation, Firm Performance and Survival, pages 35-65, Emerald Group Publishing Limited.
    19. Satt, Ehud & Ginzburg, Haim, 1992. "On the dynamic effects of using hired labor in the Kibbutz--theory and case studies," Journal of Comparative Economics, Elsevier, vol. 16(4), pages 688-700, December.
    20. Russell, Raymond, 1985. "Employee ownership and internal governance," Journal of Economic Behavior & Organization, Elsevier, vol. 6(3), pages 217-241, September.
    21. Bond, Stephen & Van Reenen, John, 2007. "Microeconometric Models of Investment and Employment," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 65, Elsevier.
    22. Elster,Jon & Moene,Karl O. (ed.), 1989. "Alternatives to Capitalism," Cambridge Books, Cambridge University Press, number 9780521378154, September.
    23. Ben-Ner, Avner, 1988. "Comparative empirical observations on worker-owned and capitalist firms," International Journal of Industrial Organization, Elsevier, vol. 6(1), pages 7-31, March.
    24. Miyazaki, Hajime, 1984. "On Success and Dissolution of the Labor-Managed Firm in the Capitalist Economy," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 909-931, October.
    25. Craig Ben & Pencavel John, 1993. "The Objectives of Worker Cooperatives," Journal of Comparative Economics, Elsevier, vol. 17(2), pages 288-308, June.
    26. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emilio Carnevali & André Pedersen Ystehede, 2023. "Is socialism back? A review of contemporary economic literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 239-270, April.
    2. Alves, Guillermo & Burdín, Gabriel & Dean, Andrés, 2016. "Workplace democracy and job flows," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 258-271.
    3. Carmen GUZMAN & Francisco J. SANTOS & María de la O BARROSO, 2020. "Cooperative Essence And Entrepreneurial Quality: A Comparative Contextual Analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(1), pages 95-118, March.

    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. 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.
    2. Dow,Gregory K., 2019. "The Labor-Managed Firm," Cambridge Books, Cambridge University Press, number 9781107589650.
    3. Guillermo Alves & Gabriel Burdin & Paula Carrasco & Andrés Dean & Andrés Rius, 2012. "Empleo, remuneraciones e inversión en cooperativas de trabajadores y empresas convencionales: nueva evidencia para Uruguay," Documentos de Trabajo (working papers) 12-14, Instituto de Economía - IECON.
    4. 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.
    5. Burdín, Gabriel & Dean, Andrés, 2012. "Revisiting the objectives of worker-managed firms: An empirical assessment," Economic Systems, Elsevier, vol. 36(1), pages 158-171.
    6. repec:ilr:articl:v:67:y:2014:i:1:p:202-238 is not listed on IDEAS
    7. Fakhfakh F. & Perotin V. & Gago M., 2009. "Productivity, Capital and Labor in Labor-Managed and Conventional Firms," Working Papers ERMES 0910, ERMES, University Paris 2.
    8. Burdin, Gabriel, 2013. "Are Worker-Managed Firms Really More Likely to Fail?," IZA Discussion Papers 7412, Institute of Labor Economics (IZA).
    9. Virginie Pérotin, 2013. "Worker Cooperatives: Good, Sustainable Jobs in the Community," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(2), pages 34-47, May.
    10. Gregory K. DOW, 2018. "The Theory Of The Labor-Managed Firm: Past, Present, And Future," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(1), pages 65-86, March.
    11. Matyja, Małgorzata, 2017. "Zasoby pracy w polskich gospodarstwach z perspektywy pracowniczych spółdzielni rolniczych," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 3(176).
    12. Alves, Guillermo & Burdín, Gabriel & Dean, Andrés, 2016. "Workplace democracy and job flows," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 258-271.
    13. Burdín, Gabriel, 2012. "Does workers' control affect firm survival? Evidence from Uruguay," AICCON Working Papers 108-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    14. Tortia, Ermanno C., 2021. "Employment protection regimes and dismissal of members in worker cooperatives," MPRA Paper 109214, University Library of Munich, Germany.
    15. 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.
    16. Jose Garcia‐Louzao, 2021. "Employment and Wages over the Business Cycle in Worker‐Owned Firms: Evidence from Spain," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 418-443, June.
    17. Gregory Dow, 2001. "Allocating Control over Firms: Stock Markets versus Membership Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(2), pages 201-218, March.
    18. Kranz, Olaf & Steger, Thomas, 2016. "Resurrected, recovered, but still didn’t survive? A case study on the viability of employee-owned companies," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 27(4), pages 234-260.
    19. Donald A R George & Eddi Fontanari & Ermanno Celeste Tortia, 2019. "Finance, property rights and productivity in Italian cooperatives," Edinburgh School of Economics Discussion Paper Series 293, Edinburgh School of Economics, University of Edinburgh.
    20. Fathi Fakhfakh & Virginie Pérotin & MÓnica Gago, 2012. "Productivity, Capital, and Labor in Labor-Managed and Conventional Firms: An Investigation on French Data," ILR Review, Cornell University, ILR School, vol. 65(4), pages 847-879, October.
    21. Gabriel Burdí­n & Andrés Dean, 2009. "Las decisiones de empleo y salarios de cooperativas de trabajo y empresas capitalistas : evidencia para Uruguay en base a datos de panel," Documentos de Trabajo (working papers) 09-02, Instituto de Economía - IECON.

    More about this item

    Keywords

    Degeneration; Labor-managed Firms; Worker Cooperatives;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms

    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:ulr:wpaper:dt-01-14. 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: Lorenza Pérez (email available below). General contact details of provider: https://edirc.repec.org/data/ierauuy.html .

    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.