ABSTRACT In times of fast‐changing social needs and limited public resources, private welfare provision plays an increasingly prominent role in the welfare mix. This article explores two dimensions of this trend, which have often been examined separately: occupational welfare (OW) and employment in the social economy. We investigate their interplay through a case study of cooperative enterprises in Italy. While cooperatives are central actors in Italy's social economy and play a vital role in delivering welfare services, existing literature points to low wages and precarious working conditions. Does OW improve employment conditions in a sector that, despite its social mission, often reproduces precarious forms of work? To address this question, the article draws on a mixed‐methods approach, combining data from two original surveys with qualitative insights from 25 interviews. The findings reveal that OW appears to be relatively widespread among cooperatives. However, especially in those offering publicly procured welfare services, their provision is severely constrained by tight economic margins. Where present, OW is likely to be used as an indirect supplement to (low) wages rather than for genuine social purposes. Moreover, a clear Matthew effect emerges: higher‐skilled workers in managerial positions benefit the most from OW, which often fails to reach the most vulnerable workers.
Ronchi et al. (2026) studied this question.