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Employee share ownership and human capital development: Complementarity in theory and practice

Author

Listed:
  • Andrew Pendleton

    (University of York, UK, ap516@york.ac.uk)

  • Andrew Robinson

    (University of Leeds, UK)

Abstract

The article examines the relationship between share ownership plans and employer-provided training. It is argued that share ownership plans are conducive to training provision because they help to generate employee commitment and function to lock employees into the firm. By so doing, they lower the risks faced by employers that returns to investments in training may not be realized. Share plans are more flexible for employers than other, more traditional, ways of rewarding employees for investing their human capital in the firm. The relationship between share plans and human capital development is tested empirically using the British Workplace Employment Relations Survey. It is found that the use of share plans and high employee participation in them is associated with high training coverage. Overall, the empirical evidence is supportive of the perspective discussed and developed in this article.

Suggested Citation

  • Andrew Pendleton & Andrew Robinson, 2011. "Employee share ownership and human capital development: Complementarity in theory and practice," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 32(3), pages 439-457, August.
    • Handle: RePEc:sae:ecoind:v:32:y:2011:i:3:p:439-457
    DOI: 10.1177/0143831X10387650
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    References listed on IDEAS

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    Cited by:

    1. Benjamin Faigen & Niels Mygind & Throstur Olaf Sigurjonsson & Audur Arna Arnardottir, 2021. "Three dimensions of employees acquiring shares in their firms: Personal characteristics, motives and type of ownership," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 42(3), pages 737-765, August.
    2. Cooper, Dylan A. & Fang, Tony & Wan, Vincent, 2025. "Employee Ownership and Promotive Voice: The Roles of Psychological Ownership and Perceived Alignment of Interests," IZA Discussion Papers 18023, IZA Network @ LISER.
    3. Loris Guery & Andrew Pendleton, 2016. "Do investments in human capital lead to employee share ownership? Evidence from French establishments," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 37(3), pages 567-591, August.
    4. Krista Jaakson & Epp Kallaste, 2016. "Who uses employee financial participation in an adverse environment? The case of Estonia," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 37(3), pages 449-467, August.
    5. Juliette Summers & Shiona Chillas, 2021. "Working in employee-owned companies: The role of economic democracy skills," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 42(4), pages 1029-1051, November.

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