Ownership Initiative at Institute for Business & Social Impact
The IBSI Ownership Initiative research activities build off the study led by UC Berkeley Haas Prof. David Levine for CA State government AB2849 Promote Ownership by Workers for Economic Recovery.
The IBSI Ownership Initiative will aim to expand our academic research agenda on priority research questions related to ownership.
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Daniel Spitzberg, Morshed Mannan, David I. Levine Analysis of Expert Interviews on Staffing Co-ops and Umbrella GroupsStudy OverviewAs a growing number of employers hire contractors and staffing agencies to build and run their business, some worker rights advocates view staffing cooperatives as a strategy to advance job quality, firm performance, and social outcomes. However, with only a few staffing co-ops and limited past research, a successful strategy requires close study of cooperative labor contracting. What kinds of staffing co-op models can create quality jobs, provide quality services, and scale? This article presents original research on goals, models, and growth among staffing co-ops and “umbrella groups,” a variety of nonprofits, secondary co-ops, and other organizations that provide multiple co-ops with shared services and pooled resources. We present in-depth profiles describing goals, models, and growth for three staffing co-ops and three umbrella groups, all based in the U.S., launched within the past six years, each with fewer than 500 members. Study ResultsWe found that staffing co-ops develop a competitive advantage that enables them to create or sustain quality jobs with higher wages, but struggle to secure clients and to scale. By contrast, we found that all umbrella groups create and sustain quality jobs among the co-ops they support, and demonstrate an ability to scale their business. Overall, our findings suggest that a competitive advantage is not sufficient for staffing co-ops, to scale. Umbrella groups can boost co-op scale and financial sustainability by providing shared services and enabling administrators to focus on core competencies around quality jobs and quality services. One structural limit to scale, however, remains the low value employers place on domestic work such as cleaning, home care, and related fields, where many women, people of color, immigrants, and other historically underrepresented communities find work. Intervention: Employee ownership models Research Partner: Institute for the Study of Employee Ownership and Profit Sharing Populations: Low-wage workers Working Paper: Spitzberg, Daniel and Morshed Mannan. 2025. Article 7: Analysis of Expert Interviews on Staffing Co-ops and Umbrella Groups IBSI Funding Acknowledgement: Ownership Initiative News & mediaThe Promote Ownership by Workers for Economic Recovery Act (AB 2849) PanelJune 13, 2023The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors. Details
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North America | Working paper | 2025 |
Analysis of the Association of Cooperative Labor Contractors (ACLC)Study OverviewThis article examines the potential formation of an Association of Cooperative Labor Contractors (ACLC) in light of the goals of the California Future of Work Commission. An ACLC would give contract workers an ownership stake in the cooperative labor contractors (CLCs) that employ them. By linking the CLCs to an association that provides shared services and upholds labor standards, an ACLC could present a more equitable employment model. An ACLC also addresses specific challenges faced by both workers and firms in contract labor markets today. Study ResultsThe analysis presented here finds meaningful opportunities for an ACLC to improve job conditions for contract labor. These include the opportunity to leverage competitive advantages of worker ownership in staffing; the opportunity for scale associated with shared services (such as HR management, employer of record services, capital access, and technology) provided by the association; the opportunity for workers to access profit-sharing benefits and ownership; and the overall opportunity for bold experimentation that an ACLC represents. However, significant challenges exist for CLCs. These include assuming employer liability for workers who are staffing other companies, securing market share, and competition in low-wage sectors known for labor violations. Additionally, there is tension between the need for cohesive workplaces and the reality of temporary staffing arrangements. Short-term contracts and highly mobile workforces can hinder CLCs from fully leveraging the competitive advantages of participatory, worker-owned business models. Intervention: Employee ownership models Research Partner: Institute for the Study of Employee Ownership and Profit Sharing Populations: Low-wage workers Working Paper: Scharf, Adria. 2025. Article 8: Analysis of the Association of Cooperative Labor Contractors (ACLC) IBSI Funding Acknowledgement: Ownership Initiative News & mediaThe Promote Ownership by Workers for Economic Recovery Act (AB 2849) PanelJune 13, 2023The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors. Details
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North America | Working paper | 2025 |
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K. MacKenzie Scott, David I. Levine Case Studies of Immigrant Entrepreneurship and Home Care Co-operatives DevelopmentStudy OverviewCalifornia’s home care system struggles to meet its growing needs, partly due to poor job quality for frontline caregivers. It leans on historically marginalized women of color and immigrants. These dynamics put at risk not only the workers, but also those who need care. Affordability challenges for individuals have led to heavy reliance on state programs for funding. Limited state budgets for care result in low reimbursement rates, shaping market prices. Further, immigration rules and gray markets empower unscrupulous employers to exploit and abuse vulnerable workers. Of existing models, entrepreneurship and worker ownership may particularly attract immigrant care workers and others with barriers to employment because owning a business can offer a way out of exploitative employment conditions. Study ResultsTesting this hypothesis are two home care agencies that are owned and run by immigrants: COURAGE LLC and SplenDoor in Home Care LLC. Key takeaways from the analysis of these two models are: (1) State policies & practices could be modified to support worker-owned business; (2) Cooperative development remains experimental and inadequately supported, relative to more traditional small business development; (3) Financial and voice benefits are mutually important, especially for immigrant owners; (4) At current wage rates for care work, it is unclear whether worker-owned home care businesses are sustainable without external support. Intervention: Employee ownership models Research Partner: Institute for the Study of Employee Ownership and Profit Sharing Populations: Low-wage workers, immigrant workers Working Paper: Scott, K. MacKenzie. 2025. Article 3: Case Studies of Immigrant Entrepreneurship and Co-op Development in Home Care IBSI Funding Acknowledgement: Ownership Initiative News & mediaThe Promote Ownership by Workers for Economic Recovery Act (AB 2849) PanelJune 13, 2023The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors. Details
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North America | Working paper | 2025 |
Case Studies of Worker Ownership Conversion: Proof Bakery and Firebrand Artisan BreadsStudy OverviewConverting existing businesses into cooperatives is a strategy to preserve jobs and wealth when an owner wishes to sell or close their business. Conversions typically seek higher compensation, a better working environment, and to create a democratic culture. However, little empirical research exists on the benefits and challenges for owners and workers across different models of employee ownership. This paper presents two case studies of employee ownership conversions. Proof Bakery in Los Angeles converted to a worker cooperative in 2021, while Firebrand Artisan Breads in Oakland was converted to a steward-ownership company in the form of a perpetual purpose trust in 2020. Study ResultsThe paper finds that as a worker co-op, Proof Bakery experienced increased revenues, higher wages, and improved job satisfaction among its worker-owners. As a perpetual purpose trust, Firebrand maintained its social mission of hiring marginalized populations while achieving financial stability with the support of value-aligned investors. Additionally, Proof Bakery’s worker co-op model gives direct ownership and control by workers to generate specific outcomes like raising prices and tripling revenues, while Firebrand’s steward-ownership model does not give direct control to workers but operates with a similar purpose to improve wages and working environments for employees. The findings suggest that both enhanced job quality and business stability through their respective ownership conversion models. Additionally, these cases offer lessons on the importance of founder vision in exploring and initiating a conversion; the considerations for company size for selecting different ownership models; and the importance of ecosystem players in enabling the conversion processes. Intervention: Employee ownership models Research Partner: Institute for the Study of Employee Ownership and Profit Sharing Populations: Low-wage workers Working Paper: Ji, Minsun. 2025. Article 6: Case Studies of Worker Ownership Conversion: Proof Bakery and Firebrand Artisan Breads IBSI Funding Acknowledgement: Ownership Initiative News & mediaThe Promote Ownership by Workers for Economic Recovery Act (AB 2849) PanelJune 13, 2023The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors. Details
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North America | Working paper | 2025 |
Case Studies of Worker-Owned Labor Contracting in Agriculture and Healthcare: California Harvesters, Inc. and AlliedUPStudy OverviewWorkers in low-wage sectors such as agriculture and allied healthcare face challenges such as labor shortages and high turnover. At the same time, a small number of staffing agencies dominate each sector and continue to generate substantial profits while labor violations continue to persist despite attempts at regulation and penalties. This paper presents two case studies of worker-owned labor contractors: California Harvesters, Inc. (CHI), a farm labor contractor with an employee-owned trust, and AlliedUP, a healthcare staffing cooperative. Study ResultsBoth face similar challenges: securing market share (securing long-term clients and recruiting talented workers), managing tight business margins in competitive sectors, and engaging a supportive ecosystem of partners. While both organizations are relatively new, having launched within the last five years, their capacity for leveraging worker voice and decision-making in their respective ownership and governance models remains slow to come online as both are prioritizing stabilizing their business operations. Despite these challenges, both have demonstrated success; CHI has ensured good working conditions for workers even though pay is still at the $16 minimum wage rate, and AlliedUP increased wages for some workers but has only 15 members as of 2023. The findings of this case study suggest that improving job quality through worker-owned labor contracting in competitive, low-wage sectors with tight labor markets has clear advantages but major challenges. Overcoming these challenges may gain from business assistance with securing clients and workforce partnerships to recruit workers, but more targeted support may be necessary to enable success Intervention: Employee ownership models Research Partner: Institute for the Study of Employee Ownership and Profit Sharing Populations: Low-wage workers IBSI Funding Acknowledgement: Ownership Initiative News & mediaThe Promote Ownership by Workers for Economic Recovery Act (AB 2849) PanelJune 13, 2023The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors. Details
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North America | Working paper | 2025 |
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K. MacKenzie Scott, David I. Levine Case Study of a Unionized ESOP: Pavement Recycling SystemsStudy OverviewThis case study shares the story of a road construction company in California, how it came to be 100% worker-owned, and how its Employee Stock Ownership Plan (ESOP) relates to governance, management, and work at the company. Study ResultsKey contributors to success include: (1) robust, capital-intensive markets that facilitate meaningful shared gains; (2) institutional labor protections for public contracts and tax incentives that help make competitive a high-road strategy with higher compensation for frontline workers; and (3) a shared ownership culture that helps support: internal promotions, high autonomy, and employee input and innovation. Headwinds for the company include concerns about leadership succession and buy-in of younger employees who are perceived as less oriented to building retirement wealth. This study notes that standard job quality metrics generally exclude employee ownership from consideration, but ownership can be a differentiating factor and increase shared gains within the firm. Relative to non-worker-owned peers, the firm has broader wealth-sharing in the compensation structure due to its high-performing ESOP and reportedly reduced executive compensation. Intervention: Employee ownership models Research Partner: Institute for the Study of Employee Ownership and Profit Sharing Populations: Unionized workers, public infrastructure workforce Working Paper: Scott, K. MacKenzie. 2025. Article 5: Case Study of a Unionized ESOP: Pavement Recycling Systems IBSI Funding Acknowledgement: Ownership Initiative News & mediaThe Promote Ownership by Workers for Economic Recovery Act (AB 2849) PanelJune 13, 2023The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors. Details
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North America | Working paper | 2025 |
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William Foley, Drew McArthur, David I. Levine Examining the Feasibility of a Worker-Ownership Conversion AI ChatbotStudy OverviewOver the next two decades, millions of small business owners will face retirement, yet the majority are unprepared–only one-third have an exit plan in place. While numerous buyers are available for many small business owners, selling to employees offers an opportunity to ensure continuity while (usually) enjoying tax advantages. However, despite its benefits, most business owners are unaware of employee ownership as a viable exit strategy. Even for those interested, determining whether an employee ownership conversion is the right fit for their business can be complex and uncertain. Employee ownership conversions require specialized expertise that most business lawyers, lenders, and advisors do not have. This report describes a chatbot designed to help business owners learn if worker ownership might be a good fit for their business. Study ResultsWe find that AI chatbots can be a useful tool to advance worker ownership. First, it lowers the barriers for potential sellers to learn about selling to employees. Second, it automates the initial steps of the conversion process for those who advise on worker ownership, freeing up their time for deals likely to go through. We conclude by discussing the implications of this finding and suggestions for future research and chatbot development. While this version focuses only on selling to worker-owners, a natural extension can help any business owner identify plausible buyers such as family members, current managers, and outsiders. Intervention: Employee ownership models Research Partner: Institute for the Study of Employee Ownership and Profit Sharing Populations: Low-wage workers Working Paper: Foley, William and Drew McArthur. 2025. Article 9: Examining the Feasibility of a Worker-Ownership Conversion AI Chatbot IBSI Funding Acknowledgement: Ownership Initiative News & mediaThe Promote Ownership by Workers for Economic Recovery Act (AB 2849) PanelJune 13, 2023The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors. Details
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North America | Working paper | 2025 |
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William Foley, David I. Levine Literature Review on Worker OwnershipStudy OverviewThis paper reviews academic and non-peer-reviewed research examining how worker ownership impacts workers and firms, with a specific focus on how worker cooperatives impact low-wage and marginalized workers. Study ResultsThe review finds that ESOP participants earn higher median wages than non-employee owners, while worker-owned cooperatives in low-wage sectors (allied health, agriculture, food service) pay roughly equal wages to their competition. Wealth accumulation through retirement or investment accounts is strong within ESOPs but remains more limited in cooperatives. More research is needed to understand the wage and wealth effects of worker coops and if these ownership models can consistently be used to improve the economic inequality and work experiences of people of color, immigrants, and other historically underserved populations, particularly in low-wage sectors. Worker-owned firms showed an improved ability to mitigate staff layoffs during economic shocks. Job satisfaction increases when worker ownership is combined with high-performance work practices, such as participation in decision-making and access to training. Productivity gains are more likely when combined with participatory management practices and knowledge sharing. Findings suggest that while worker-ownership may improve job quality, firm performance, and other social and economic outcomes, it is not a complete solution for labor market challenges and does not fully resolve systemic issues of gender and racial discrimination. Intervention: Employee ownership models Research Partner: Institute for the Study of Employee Ownership and Profit Sharing Populations: Low-wage workers Working Paper: Foley, William. 2025. Literature Review on Worker Ownership IBSI Funding Acknowledgement: Ownership Initiative News & mediaThe Promote Ownership by Workers for Economic Recovery Act (AB 2849) PanelJune 13, 2023The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors. Details
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North America | Working paper | 2025 |
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Gonçalo Pessa Costa, David I. Levine Statistical Analysis of Employee Stock Ownership Plan (ESOP) Membership and Worker OutcomesStudy OverviewThis statistical analysis examines the effects of employee ownership on worker outcomes, and whether these effects are different for disadvantaged workers. While previous studies have established that ESOP firms exhibit productivity levels equal to or higher than conventional firms and that ESOP members tend to benefit from wealth building, there is limited research on worker experiences within ESOPs. Study ResultsThe analysis of self-reported attitudes and perceptions in two datasets, the General Social Survey and the National ESOP Employee Survey, finds that ESOP membership is related with several outcomes: increased worker satisfaction, participation in decision-making, commitment to the firm, and less searching for alternative jobs. While the GSS data shows mixed results with only some findings remaining statistically significant after adjusting for multiple comparisons, the NEES data consistently indicates robust positive impacts of ESOP membership on job satisfaction, organizational commitment, and reduced intentions to seek new employment. However, the analysis also finds no significant evidence that these effects vary significantly between disadvantaged and non-disadvantaged workers. These findings suggest that ESOP membership can enhance job quality and employee well-being in certain measures. However, given a modest sample size, these findings have limited precision, with insufficient data to draw firm conclusions about the experiences for disadvantaged workers. Intervention: Employee ownership models Research Partner: Institute for the Study of Employee Ownership and Profit Sharing Populations: Low-wage workers Working Paper: Costa, Gonçalo Pessa and David Levine. 2025. Article 2: Statistical Analysis of ESOP Membership and Worker Outcomes IBSI Funding Acknowledgement: Ownership Initiative News & mediaThe Promote Ownership by Workers for Economic Recovery Act (AB 2849) PanelJune 13, 2023The Promote Ownership by Workers for Economic Recovery Act (AB 2849), codified in Labor Code sections 10000-10010) establishes a panel to study the creation of an Association of Cooperative Labor Contractors, among other potential activities, to facilitate the growth of democratically-run high-road cooperative labor contractors. Details
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North America | Working paper | 2025 |