In this research brief, we provide back-of-the-envelope calculations showing that, as of 2022, about 140,000 firms employing around 33 million workers would have been suitable candidates for ESOP employee buyouts, and nearly 1.1 million firms employing over 25 million workers suitable candidates for cooperative employee buyouts. Collectively, these firms accounted for roughly $25 trillion in … Read More
In an analysis of data from the 2008-2020 waves of the Health and Retirement Study (HRS), a large biennial survey of Americans over the age of 50, we find no evidence of ESOP “wage substitution,” even when attempting to account for the possible effects of information we do not know about workers who do and … Read More
The Employee Stock Ownership Plan (ESOP) is a uniquely American structure that allows employees to own a stake in the company where they work. With more than 10 million participants in more than six thousand U.S. corporations, ESOPs are the most prevalent form of broad-based employee ownership in the United States. We know that ESOPs … Read More
Questions: What impact do ESOPs have on wealth in retirement? In particular, what is the relationship between prior ESOP participation and the average wealth of worker-owners once they retire? And what effect (if any) do ESOPs have on wealth inequality among retirees? Summary: Using data from the 2008-2018 waves of the Health and Retirement Study, … Read More