Underemployment due to overeducation: An analysis of worker cooperatives versus conventional firms

Abstract

This research study analyses overeducation in worker cooperatives (WCs) compared to conventional firms (CFs) to determine whether there is any evidence to suggest that underemployment due to overeducation is less probable in WCs (where decisions are made democratically by worker members to maximise collective wellbeing) than in CFs in Spain. A total sample of 945 workers (315 worker members from WCs, 315 non-member workers from WCs and 315 workers from CFs) taken from the Continuous Working Life Sample from the Spanish Ministry of Inclusion, Social Security and Migration was used. The methods applied in the study include regression line comparison between WCs and CFs and logistic regression analysis. The results show that the probability of underemployment due to overeducation may be lower in worker members from WCs than in workers from CFs. Nevertheless, this is not the case for non-member workers in WCs, who display a similar level of underemployment due to overeducation as workers in CFs. This study lays the foundation for research into underemployment due to overeducation in WCs, a topic which has not yet been explored.