Study Overview
This 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 Results
The 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 & media
The Promote Ownership by Workers for Economic Recovery Act (AB 2849) Panel
June 13, 2023
The 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.