Study Overview
This 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 Results
The 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 & 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.