New Study on the Impact of S Corporation ESOPs

In his April 17, 2013, study, Macroeconomic Impact of S ESOPs on the U.S. Economy, economist Alex Brill concludes that S corporation ESOPs lead to "greater firm longevity and higher wages, wage growth, job stability, retirement plan contributions, employment, and sales than would otherwise have been anticipated." The study attempts to quantify the impact of S corporation ESOPs and finds their impact to be:

• 1.4 million jobs (including 470,000 employees in S corporations with ESOPs and 940,000 jobs indirectly created via S corporation ESOP companies' economic activity),
• 1.7% of US GDP (including both direct and indirect output, S ESOPs created or supported $246 billion in output,
• $77 billion in employee compensation and benefits, and
• $16 billion in federal tax revenue and $11 billion in state tax revenue.