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Sharing Ownership, Sharing Wealth
New research shows that employee ownership can aid in closing the racial wealth gap
In Brief: Researchers at Morehouse College have found that forms of employee ownership may help ease gaps in racial wealth, particularly in southern metro areas like Atlanta.
Why It Matters: While previous research has shown the impact of employee ownership on increasing employee happiness and workplace productivity, this report focused on the benefits of employee ownership when it comes to wealth and asset accumulation among minority workers.
The Report: This particular research focused on worker cooperatives, or co-ops, where all employees are equal owners within the business. It found that employee ownership is most impactful in aiding wealth or asset accumulation. This is particularly important in cities like Atlanta, where significant wealth gaps remain between White residents and their African American counterparts. Much of this inequity is a remnant of the ‘plantation economy’ that characterized the South in the 19th and 20th centuries.
What’s Next: Researchers at Morehouse now hope to help businesses as they transition to employee ownership. The Morehouse Innovation and Entrepreneurship Center is holding training programs on how local business owners can set up succession plans and begin to transition their employees to employee-owners. Other plans for the future include crafting a course focused on employee ownership, and maybe one day an employee-ownership focused track.