Promoting Inclusive Capitalism

When a company does well, so should its workers. American workers have helped the economy grow by becoming more productive. Yet, even as productivity has increased, many middle- and working-class households have experienced stagnant wages and declining household incomes over the past few decades. This means workers currently receive only a small share of the wealth they help create.

Broad-based sharing programs—such as granting workers an ownership stake or a share of profits based on workers’ collective performance—can help ensure that workers are rewarded for the wealth they generate. Advocates for these programs refer to this type of sharing by a number of names, including broad-based profit sharing and inclusive capitalism. Collectively, these programs hold the potential not only to benefit workers: Research shows that firms and investors also receive tangible benefits from sharing with their workers.

For more on this idea, please see:

• Capitalism for Everyone: Encouraging Companies to Adopt Employee Ownership Programs and Broad-Based Profit Sharing by Karla Walter, David Madland, and Danielle Corley