earticle

영어

This paper empirically investigates the effects of the employee stock ownership on labor productivity. This paper uses a panel data set on employee ownership over the 2000-2005 period for Korean listed and unlisted manufacturing companies. The paper controls for simultaneity between employee ownership and firm performance using a two-stage least squares method and lagged variables of production factors and employee ownership. The empirical results show that an increase in employee ownership is associated with an increase in value-added per worker under Korea's new employee stock ownership plans newly established in 2002.