Read the new Editor's Choice article: What do Cooperative firms maximise, if at all? Evidence from Emilia-Romagna in the pre-Covid decade

What distinctive features do cooperative firms have when compared to conventional firms? Do they react differently to shocks? We answer these and other related questions by detecting actual behaviors of all active cooperatives and cooperative-controlled stock companies in the Emilia-Romagna region in the second decade of this millennium.

Cooperatives are concerned with both profits and employment, with the latter being more important during economic downturns. As far as shocks are concerned, the cooperative firms prove themselves to be more resilient than conventional firms. Such behavior yields an overall stabilizing effect on regional employment, given the critical mass of the cooperative movement within the same region.

These conclusions stem from a statistical investigation of a unique dataset including all firms registered in a region which is recognized as the world’s most important cooperative district. This work also provides insights with regards to the long-lasting theoretical enquiry on the ultimate goal of cooperatives, especially worker’s ones.  Lastly, this research hints at potential consequences of the cooperative presence on income inequality and prosperity within local communities.

   

2020 Impact Factor: 1.905