Employee Stock Ownership Plans and Productivity in Japanese Manufacturing Firms

Type of Work

Article

Date

9-1993

Journal Title

British Journal of Industrial Relations

Journal ISSN

0007-1080

Journal Volume

31

Journal Issue

3

First Page

331

Last Page

346

DOI

10.1111/j.1467-8543.1993.tb00401.x

Abstract

By using a large new enterprise-level data set, and evidence from case studies, we show that Japanese employee stock ownership plans (ESOPs) are a pervasive and neglected institution. In 1988, more than 90 percent of all firms listed on Japanese stock markets had an ESOP, and close to 50 percent of the labor force in firms with ESOPs participated in the plan. Micro data and a production function framework are used to examine the effects on business performance of ESOPs. On average, the net effect of introducing an ESOP is to increase productivity by almost 7 percent.

Notes

JEL Classification: J24, J33, G32

Hamilton Areas of Study

Economics

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