A new study from the Rutgers University Institute for the Study of Employee Ownership and Profit Sharing finds that workers without bachelor’s degrees who work in jobs with employee stock ownership plans report higher earnings, stronger access to employer-provided benefits, and greater household wealth than workers in non-ESOP jobs.
Commissioned by ESCA, the report offers the first national analysis of how ESOPs shape pay outcomes for employees without college degrees. The findings come as policymakers increasingly focus on strengthening economic opportunities for workers without four-year degrees.
Key findings of the study include:
Full-time workers without a bachelor’s degree earn 15.3% more in ESOP jobs. They earn an average of $80,091 per year, compared with $69,458 for workers in non-ESOP jobs, an annual difference of $10,633.
ESOP workers report stronger access to employer-provided benefits. More than 95% of ESOP workers report access to medical insurance, compared with 81.9% of non-ESOP workers.
ESOP workers report nearly $14,000 more in median household net worth. Full-time workers without a bachelor’s degree in ESOP jobs report median household net worth of $93,500, compared with $79,640 among non-ESOP workers.