Employee Stock Ownership Plans and Productivity in Japanese Manufacturing Firms
Type of Work
British Journal of Industrial Relations
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.
Jones, Derek C. and Kato, Takao, "Employee Stock Ownership Plans and Productivity in Japanese Manufacturing Firms" (1993). Hamilton Digital Commons.
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