"Valuable investments in human capital, it has been argued, may be at risk in much the same way as shareholder equity capital. In this paper, we develop and test the hypothesis that employee share ownership (ESO) may be used to encourage and safeguard investments in human capital. Using the Workplace Employee Relations Survey 1998, we examine the empirical link between the likelihood of ESO and the presence of valuable human capital. Adjusted for possible structural influences, empirical evidence suggests considerable support for our hypothesis."

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