The field of broad-based employee ownership within corporations is a specific application of the foundational topic of property ownership. It is situated at the intersection of a broad range of scholarly disciplines including economics, law, finance and management. Each discipline contributes vocabulary and distinctions describing this field. That broad spectrum of disciplinary inquiry is a … Read More
In this book, Gregory K. Dow asks the question: “Why are labor managed firms rare in modern economies?” Dow emphasizes the fact that capital is alienable while labor is inalienable. This distinction, together with market imperfections, explains the rarity of labor-managed firms. This book uses modern microeconomics, develops formal models, exploits up-to-date empirical research, and … Read More
Carta’s Equity 101 is a free, interactive course designed to help everyone learn the fundamentals of equity. The course breaks down the basics of equity into 10 interactive lessons, covering the fundamentals including receiving a grant, selling shares, and taxation. In about an hour, users can learn basic terms and useful information, beginning from the … Read More
Employee ownership has attracted growing attention for its potential to improve economic outcomes for companies, workers, and the economy in general, and help reduce inequality. Over 100 studies across many countries indicate that employee ownership is generally linked to better productivity, pay, job stability, and firm survival—though the effects are dispersed and causation is difficult … Read More
This short book presents reflections from Father José María Arizmendiarrieta, the founder of the Mondragon worker-cooperative conglomerate in the Basque country of Spain. His reflections contain economic insights. But these aphorisms and fragments reveal that his central motivation was spiritual—not to the exclusion of the practical, but with the recognition that plutocratic capitalism, also, is … Read More
This paper analyzes participation decisions in employee stock purchase plans. These plans allow employees to buy company stock at a discount from the market price and resell it immediately for a sure profit. Although an average employee stands to gain $3,079 annually, only 30% of individuals take advantage of this risk-free opportunity. Participation is more … Read More
This two day seminar will examine a new form of Inclusive Capitalism founded on a broader distribution of capital acquisition and fuller employment. This two-day virtual event brought together professors of economics and other disciplines from numerous universities to discuss the creation of a teaching and research agenda centered around Inclusive Capitalism.
The concentration of ownership by the very wealthy is supported by a financial system that enables them to acquire income-producing capital basically on credit whereas no such financing strategy is available to the mass of the population. A solution lies in creating a system whereby every individual has the right and opportunity to acquire income-producing … Read More
Worker cooperative practitioners and developers often claim that democratic worker ownership advances egalitarianism within and beyond the workplace, but most of the empirical evidence in the U.S. is based on ethnographic case studies or small-scale surveys. We leverage the first national survey about individuals’ experiences in these unique firms to ask if claims that co-ops … Read More
In this presentation to a business school class, Anne-Claire Broughton, Founder of the North Carolina Employee Ownership Center and Broughton Consulting, presents about employee ownership and pay fairness to Dr. Lynn Bowes-Sperry’s Business Ethics Course. Dr. Bowes-Sperry is Associate Professor of Management & Jack and Susan Acosta Endowed Chair at the California State East Bay … Read More
This study by Jared Bernstein looks at why there are not more ESOPs and considers how to address potential barriers to entry. Drawing on a survey of 250 non-ESOP business owners and leaders, as well as interviews with business owners of employee-owned companies, it argues that education and awareness about the ESOP structure is key.
This paper proposes that impact investors and other capital providers could catalyze employee ownership buyouts. Impact capital could become the lever used to redirect wealth into the hands of working Americans, creating a more just and equitable economy that is more resilient against future shocks. Investments in employee ownership buyouts could offer attractive midrange returns, … Read More
This is a list of datasets, all accessible to researchers, that enable the study of employee ownership.
Laws in many countries mandate paying men and women equally when in similar jobs. Such laws, coupled with considerable organizational efforts, lead some scholars to contend that within-job pay inequality is no longer a source of the gender pay gap. This article argues important differences in a widely used form of pay heretofore overlooked in … Read More
The most fundamental tragedy of the coronavirus crisis is human. It is lives being lost. Somewhere close behind is the feeling of desperation shared by working people. In an economy where it is estimated that 50 percent of the labor force survives from paycheck to paycheck, we are facing an economic crisis of unprecedented proportions that exposes a fundamental flaw in our widely accepted idea of the relationship between working people and their places of work.
In this short video, Dr. Avner Ben-Ner describes his research on equity compensation and its effects. “Employee ownership is a complex and yet very simple straightforward idea.”
In this short video, Dr. Philip Mellizo describes his special research approach to studying employee ownership. “The way that I go about analyzing these questions is by developing controlled economic experimental studies.”
Dr. Avner Ben-Ner was recognized for his entire body of work at the 2020 Workshop in Honor of Louis O. Kelso. See slides from the presentation here. Avner Ben-Ner is a Professor in the Center for Human Resources and Labor Studies in the Carlson School of Management at the University of Minnesota and a Senior Scholar … Read More
Dr. Avner Ben-Ner was recognized for his entire body of work at the 2020 Workshop in Honor of Louis O. Kelso. See slides from the presentation using the Resource Link below. See the video presentation here. Avner Ben-Ner is a Professor in the Center for Human Resources and Labor Studies in the Carlson School of Management at … Read More
At the center of the ongoing debate about the causes and cures of inequality in America today is the vast difference in wealth between owners and workers. As many have noted, that gap was not nearly as large in the middle of the twentieth century as it has become in the first two decades of the 21st century, where owners and other executives make many multiples of what workers make – largely through grants of stock in lieu of salary.
From Ted Howard, co-founder of the Democracy Collaborative, and Marjorie Kelly, author of The Divine Right of Capital and Owning our Future, The Making of a Democratic Economy is a clarion call for a movement ready to get serious about transforming our economic system. Illuminating the principles of a democratic economy through the stories of on-the-ground community wealth builders and … Read More
The mainstream economic theory that guides corporations in the US only works if markets are perfectly efficient. This flawed theory has led to corporate decision-making that centers shareholders above all else, including other stakeholders (e.g., workers), long-term business growth, and economic health. This shareholder-first ideology is referred to as “shareholder primacy,” which does not reflect … Read More
In 2015, the W.K. Kellogg Foundation engaged the Institute for the Study of Employee Ownership and Profit Sharing, at the Rutgers University School of Management and Labor Relations, to conduct a qualitative study examining the asset building impacts of employee ownership for low- and moderate-income employees and their families.
The origins of the next radical economy is rooted in a tradition that has empowered people for centuries and is now making a comeback. A new feudalism is on the rise. While monopolistic corporations feed their spoils to the rich, more and more of us are expected to live gig to gig. But, as Nathan … Read More
Do firms with employee ownership (EO) programs exhibit greater employment stability in the face of economic downturns? In particular, are firms with EO programs less likely to lay off workers during negative shocks? In this article, we examine the relationship between EO programs and employment stability in the United States using longitudinal Form 5500‐CompuStat matched … Read More