Race and gender wealth equity and the role of employee share ownership

• Published in: Journal of participation and employee ownership (Online) 2021-11, Vol.4 (2), p.116-135
• Main Authors: Weissbourd, Jenny, Conway, Maureen, Klein, Joyce, Chang, Yoorie, Kruse, Douglas, Hoover, Melissa, Leverette, Todd, McKinley, Julian, Trenholm, Zen
• Format: Article
• Language: English
• Subjects: Balance sheets; Central banks; Cost control; COVID-19; Earnings; Economic recovery; Economic stabilization; Employee ownership; Entrepreneurs; Gender; Households; Inequality; Minority & ethnic groups; Pandemics; Race; Segregation; Sex discrimination; Single persons; Women
• ISSN: 2514-7641; 2514-765X
• DOI: 10.1108/JPEO-08-2021-0008

Purpose>The paper discusses the relationship between systemic inequity and wealth disparity and advocates for expanding employee share ownership as a strategy to address divides in income and wealth by race and gender. It targets diverse actors including policymakers, philanthropic leaders and social investors and presents a set of policy proposals and practice ideas that seek to advance a broader understanding of employee share ownership and build the capacity of key organizations to support employee-owned businesses.Design/methodology/approach>This paper draws on data indicating positive outcomes from employee share ownership programs (ESOPs) related to job quality, economic stability and wealth-building, as well as widespread political support for ESOPs.Findings>This paper suggests that employee share ownership can help to strengthen job quality and address race and gender income and wealth gaps. It argues that there is both public support and a range of different strategies actors can implement to expand awareness and access to different forms of employee share ownership.Research limitations/implications>Additional research focused on other forms of employee share ownership (beyond ESOPs) is needed to deepen understanding of how each form can play a role in addressing racial and gender wealth inequities. The paper acknowledges that despite the potential of employee share ownership to mitigate racial and gender wealth gaps, additional simultaneous strategies are required to address the range of systemic barriers that have disproportionately limited women and people of color's participation in ESOPs.Practical implications>Policymakers are actively seeking new proposals, while philanthropic leaders, social investors and others are also eager to build awareness and understanding of employee ownership models and develop the institutional capacity necessary to support strong employee-owned businesses. This paper directly responds to these needs and contributes to a broader collaborative effort to spread employee share ownership policies and practices that support economic recovery and lay the foundation for a more equitable and resilient economy.Social implications>Employee share ownership is not yet a strategy that is well understood among policymakers and the public, but it connects to and supports outcomes that are top of mind for many, including increasing local ownership and bolstering local economies, helping small business owners retire in ways that p