The Impact of Employee Ownership and ESOPs on Layoffs and the Costs of Unemployment to the Federal Government

Corey Rosen

This report from the National Center for Employee Ownership reveals that between 2002 and 2010, employees without an ownership stake in their companies were almost four times more likely to lose their jobs than employees who owned a of portion of their company. The numerical value of this advantage saved tax payers and the federal government $37 million over eight years. As a wealth building strategy, employee ownership not only reduces insecurity during a recession, but can also reduce forgone taxes and demands on public coffers for unemployment benefits.

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