Working Paper: NBER ID: w2273
Authors: Charles Brown; James L. Medoff
Abstract: In this paper, we investigate the changes in wages and employment following a firm's involvement in an acquisition, compared with firms not involved in acquisitions. Contrary to the tenor of popular press coverage of acquisitions, which focuses on hostile takeovers of large firms, we find small (and sometimes positive) changes in wages and employment following an acquisition.
Keywords: Firm Acquisitions; Labor Economics; Wages; Employment
JEL Codes: J23; L22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Type 1 acquisitions (L14) | wage decline (J31) |
| Type 1 acquisitions (L14) | employment increase (J68) |
| Type 2 acquisitions (L14) | wage increase (J31) |
| Type 2 acquisitions (L14) | employment decrease (J63) |
| Type 3 acquisitions (L14) | wage decline (J31) |
| Type 3 acquisitions (L14) | employment increase (J68) |
| acquisitions (G34) | wages (J31) |
| acquisitions (G34) | employment (J68) |