Beyond the College Pathway

Summary

Workers without bachelor’s degrees make up the majority of the American workforce—about 55% of employed workers. Across the political spectrum, policymakers and workforce leaders are interested in strengthening pathways to good jobs for workers without four-year college degrees. This report analyzes how Employee Stock Ownership Plans (ESOPs) may shape pay and related outcomes for such workers. The findings suggest that ESOP jobs are associated with stronger earnings, greater access to employer-provided benefits, and higher household net worth for workers without bachelor’s degrees. Key Highlights: 1) Full-time workers without a bachelor’s degree earn more in ESOP jobs. 2) ESOP earnings advantages appear across gender, race and ethnicity, and rural and urban areas, suggesting that ESOP jobs are associated with higher earnings on average for workers without college degrees across demographic and geographic groups—although disparities remain. 3) ESOP workers report greater household wealth, suggesting that employee ownership may contribute not only to better pay, but also to longer-term financial security.