Worker Cooperatives and Financial Capability Building: A Comparative Study of Home Care Workers in a Shared Union Environment

Background: Research on financial capability and asset building (FCAB) shows that institutional context shapes financial access and outcomes (Sherraden, 2013), but less attention has been paid to how organizational membership shapes workers’ interpretive frameworks—the cognitive schemas through which they understand and navigate financial systems. Neoinstitutional theory suggests organizations shape cognition through normative and cultural-cognitive structures (Scott, 2014), while Freire’s concept of critical consciousness emphasizes the role of collective dialogue in developing awareness of systemic inequality (Freire, 1970; Watts et al., 2011). Whether organizational membership fosters critical consciousness about financial systems remains underexplored.

Worker cooperatives (co-ops), characterized by democratic governance and collective decision-making (Gordon Nembhard, 2014), have been shown to expand financial access for precarious immigrant workers (Kim et al., 2026). This study examines whether co-op membership also shapes how workers interpret financial systems and navigate their financial lives. Comparing co-op and non-co-op members within the same union allows us to isolate organizational context while holding occupation and demographics relatively constant.

Methods: We conducted a qualitative study with 23 Latina home care workers in New York City, all members of the 1199 SEIU union, including both co-op and non-co-op workers. Participants were recruited through union channels. Semi-structured interviews (45–70 minutes) were conducted via Zoom between June and November 2025, recorded, transcribed, and translated into English. Participants received a $40 gift card. Data were analyzed using an inductive, team-based coding approach with iterative coding, shared code development, and consensus-based resolution of discrepancies.

Results: Organizational context shapes financial consciousness and decision-making. Compared to non-co-op members, co-op members demonstrated: (1) greater critical awareness of systemic financial exclusion, (2) different risk orientations toward digital banking, and (3) reliance on collective and institutional safety net strategies rather than individual or informal approaches.

Implications: Organizational context influences financial capability beyond resource access. Worker co-ops may serve as sites of collective meaning-making where critical financial consciousness develops through shared experiences and dialogue. For practice, worker-led organizations offer important contexts for financial empowerment beyond individual resource provision. For policy, supporting co-op development may enhance financial capability by strengthening workers’ ability to navigate financial systems. Future research should examine whether these patterns hold across contexts and whether critical financial consciousness affects financial outcomes and well-being