Splitting the Pie in Italian Cooperatives: A Comparative Analysis with Panel Data (2014–2023)

While the crucial role of cooperative enterprises in promoting economic and social sustainability is well established, their capacity to sustain employment and labour remuneration compared with capitalist firms is still largely unexplored. This study addresses this gap by analysing a unique panel of all Italian firms active between 2014 and 2023. We first show that, up to the COVID pandemic, cooperatives exhibit a stronger employment resilience than capitalist firms. However, cooperative resilience declines in later years, suggesting severe challenges in sustaining employment under prolonged stress. Second, using a novel econometric approach that accounts for unobserved heterogeneity and confounding factors, we investigate whether cooperatives display a stronger commitment to labour remuneration. Our findings reveal that cooperatives consistently allocate a higher share of value added to labour than capitalist firms, reflecting a structural commitment to workers’ remuneration. This engagement persists even during downturns, highlighting the important role of cooperatives during economic shocks. Overall, the findings highlight both the contribution and the difficulties of the cooperative model in enhancing inclusive and resilient economic systems, providing insights relevant to public policy in view of the pursuit of the Sustainable Development Goals.