Summary
Does employee ownership improve productivity? This study finds that Employee Stock Ownership Plans (ESOPs) are associated with significantly higher labor productivity, even when controlling for organizational and management factors. Adopting an ESOP is linked to a 5.6%–6.7% increase in productivity. How much ownership workers have, matters: A $100,000 increase in ESOP assets per active employee is associated with a 25.7%–26.5% increase in labor productivity. Overall, the findings suggest that broad-based employee ownership—particularly when ownership stakes are substantial—has a robust and meaningful positive impact on workplace performance.