Document Type


Publication Date


Research Center

Center for Economic Development


This study focuses on Ohio companies with an Employee Stock Ownership Plans (ESOPs) - the most common form of employee ownership in the U.S. Literature on the positive impacts of employee ownership at the individual and company level has grown in recent decades finding that individual employee-owners have longer tenure, more household wealth, higher wages, larger retirement accounts, and opportunities to participate in company decisions. At the company level research finds that employee-owned companies perform better than conventional companies on several performance metrics including overall survival rates, productivity, employment growth, and sales. Findings from both individual and company level studies have led many to assume that employee-owned companies have a positive impact on the surrounding communities in which they operate. However, there has been little research that investigates what the direct, indirect, induced, and total economic impact of employee-owned companies is.

Using the IMPLAN regional model, we generated first of their kind estimates of the economic and fiscal impact of Ohio ESOP companies. We find that 307 ESOP companies in Ohio supported over 471,000 full-time and part time jobs, $41 billion in labor income, $103 billion in value added, and $198 billion in output and generated $15.7 billion in aggregate taxes ($2.8 billion in local, $3.2 billion in state, $9.7 billion in federal). These findings, along with qualitative research on the impact of Covid-19 pandemic provides further evidence that employee-owned companies play a beneficial role in Ohio’s economy.