Employee Ownership, ESOPs, Wealth, And Wages

Jared Bernstein

This new paper from Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities and former chief economist for Vice President Joe Biden, finds that Employee Stock Ownership Plans (ESOPs) can be an important tool to address income inequality and that workers at ESOP companies tend to have more equal wage distributions. Bernstein makes two recommendations for expanding ESOPs—creating a small government agency to help firms transition to employee ownership and only awarding tax breaks to companies with some form of employee ownership.

More on Employee Stock Ownership Plans (ESOPs)...