Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • May 13, 2021
  • Article
  • Harvard Business Review (website)

The Big Benefits of Employee Ownership

By: Thomas Dudley and Ethan Rouen
  • Format:Electronic
ShareBar

Abstract

Wealth inequality in the U.S. has been increasing for decades: The richest 1% own a majority of all business wealth, and the top 10% own more than 90%. Companies, which have played a vital role in the growth in inequality can also play one in reducing it. One place to start is by expanding employees’ ownership stakes in companies, giving workers a path to building wealth. Our analysis finds that broad employee ownership would dramatically increase the wealth of the poor while having only a modest negative effect on the rich. There’s incentive for companies, too: Businesses with 30% or more employee ownership are more productive, grow faster, and are less likely to go out of business than their counterparts.

Keywords

Wealth; Equality and Inequality; Corporate Social Responsibility and Impact; Employee Ownership; United States

Citation

Dudley, Thomas, and Ethan Rouen. "The Big Benefits of Employee Ownership." Harvard Business Review (website) (May 13, 2021).
  • Register to Read

About The Author

Ethan C. Rouen

Accounting and Management
→More Publications

More from the Authors

    • April 2023
    • Journal of Corporate Finance

    The Stock Market Valuation of Human Capital Creation

    By: Ethan Rouen and Matthias Regier
    • March 2023
    • Faculty Research

    Ownership Works: Scaling a Profitable Social Mission

    By: Ethan Rouen, Dennis Campbell and Andrew Robinson
    • December 2022
    • Faculty Research

    KKR at CHI Overhead Doors (C)

    By: Dennis Campbell and Ethan Rouen
More from the Authors
  • The Stock Market Valuation of Human Capital Creation By: Ethan Rouen and Matthias Regier
  • Ownership Works: Scaling a Profitable Social Mission By: Ethan Rouen, Dennis Campbell and Andrew Robinson
  • KKR at CHI Overhead Doors (C) By: Dennis Campbell and Ethan Rouen
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College