Objective
Rising concentration of income and wealth in advanced economies has triggered calls for more redistribution and regulation. Yet implementation of these systemwide correctives has been limited, partly because of political resistance from organized interests. In response, some political forces have turned to firm-level remedies, addressing inequality at the point where income is created. These include limits on the ratio of top executive compensation to worker wages (pay caps), and support for worker cooperatives (coops). However, formal and quantitative assessments of the inequality-reduction benefits of these policies, or of their impact on macroeconomic outcomes, are either inexistent (for pay caps) or outdated (for coops). Building on methodological foundations established in Caselli (2025, pay caps) and Brzustowski and Caselli (2025, coops), CompCoopCaps seeks to fill these gaps. Track 1 will evaluate the quantitative impact of pay caps in economies featuring frictions such as: monopsonistic labour markets; managers motivated by non-pecuniary benefits of control; and managerial rent extraction. In all these cases, there are reasons to conjecture that pay caps may not only reduce top-income concentration but also ameliorate the respective frictions – making the policy less costly in terms of aggregate output than it would be in a frictionless economy. Track 2 will produce similar evaluations for economies with coops. In a micro-to-macro progression, it will begin with a partial-equilibrium analysis of the comparative productivity properties of coops and conventional firms; which will then be embedded in a general equilibrium model of organizational-form choice by firm funders with heterogeneous abilities; to be then further extended to a search and matching framework for the evaluation of the comparative risk properties of coops, and finally to a full dynamic framework which traces implications for growth and inequality in the long-run.
Fields of science (EuroSciVoc)
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2025-ADG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
WC2A 2AE London
United Kingdom
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.