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Employee ownership and attitudes: The role of selection effects

Year: 2025

Type: article

Abstract: Studies of employee ownership (EO) have repeatedly cautioned that selection effects may be in part responsible for the apparent effects of EO on employee attitudes. Favourable attitudes among employee owners may result from individuals with positive views towards EO selecting into the company or the EO plan. Using data from a US employee stock ownership plan (ESOP), this study investigates whether EO as a factor in employment choice influences psychological ownership and preferences for working in EO firms in the future. The findings reveal that joining the company due to EO has a substantial, independent effect on psychological ownership beyond the influence of plan participation. The article quantifies the magnitude of this selection effect. Additionally, joining for this reason strongly impacts preferences for future employment in employee-owned firms.

Source: Economic and Industrial Democracy

DOI: 10.1177/0143831x251389047

Authors: Rebecca Fichtel, Andrew Pendleton, Thomas Steger, Nadia Faltermeier, Juliane Fink, Carmen Sitz

Institutions: University of Regensburg, UNSW Sydney

Language: English

Topic: Cooperative Studies and Economics

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,650