Broad-Based Stock Options: Before and After the Market Downturn  - CLEO Skip to main content


We examine labor productivity in small, medium, and large firms that broadly distribute stock options under starkly different market conditions – during the bull (1995-1997) and bear (2000-2002) stock markets. We find greater labor output in both upward and downward markets in all firm size categories, with the exception of small firms in a declining market, where the productivity is also greater, but the statistical significance of the result is weak.

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