New Research: Comparing ESOPs and Worker Cooperatives by Industry
Executive Director
A new analysis of employee ownership by industry shows the similarities and contrasts between ESOP companies and worker cooperatives. The analysis, by Joseph Blasi and Douglas Kruse of the Rutgers University Institute for the Study of Employee Ownership and Profit Sharing, shows that the three industries (manufacturing, professional services, and financial services) account for 57% of ESOP companies. By contrast, the top three industries for worker cooperatives (manufacturing, other services, and retail trade) represent 70% of firms.
| Industry | ESOPs | Worker Coops |
|---|---|---|
| Manufacturing | 21.1% | 16.0% |
| Professional/Scientific/Technical Services | 19.7% | 11.7% |
| Finance/Insurance/Real Estate | 16.4% | 0.4% |
| Construction | 11.3% | 5.9% |
| Other Services | 10.0% | 39.0% |
| Wholesale Trade | 9.8% | 0.5%* |
| Retail Trade | 5.7% | 15.2% |
| Transportation | 2.1% | 5%* |
| Information | 1.7% | 3.9% |
| Agriculture | 1.2% | 2.3% |
| Utilities | 0.6% | 0.0% |
| Mining | 0.5% | 0.0% |
*Estimation made by disaggregating Transportation and Warehousing in Palmer, p. 24.
The table is based on 2014 U.S. Department of Labor Form 5500 Population Data for closely held ESOPs and Democratic Worker Ownership After the Great Recession by Tim Palmer (Democracy at Work Institute, 2014). Percentages do not add up to 10% because of rounding.