Firm consolidation and labor market outcomes

Using rich administrative data from the Netherlands, we study the consequences of firm consolidation for workers. For workers at acquired firms, takeovers are associated with a 8.5% drop in employment at the consolidated firm and a 2.6% drop in total labor income. These effects are persistent even four years later. We show that the primary mechanism for this job loss is labor restructuring at consolidating firms. Specifically, workers with higher-than-expected pay relative to their human capital and workers with skills that are likely already present at acquirers are less likely to be retained... Mehr ...

Verfasser: Dobbelaere, Sabien
McCormack, Grace
Prinz, Daniel
Sóvágó, Sándor
Dokumenttyp: doc-type:workingPaper
Erscheinungsdatum: 2022
Verlag/Hrsg.: London: Institute for Fiscal Studies (IFS)
Schlagwörter: ddc:330 / Adoption / Employment effect / Household income / Labor demand / Estimation / Netherlands / Übernahme / Beschäftigungseffekt / Haushaltseinkommen / Arbeitsnachfrage / Schätzung / Niederlande
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-29217129
Datenquelle: BASE; Originalkatalog
Powered By: BASE
Link(s) : http://hdl.handle.net/10419/284215

Using rich administrative data from the Netherlands, we study the consequences of firm consolidation for workers. For workers at acquired firms, takeovers are associated with a 8.5% drop in employment at the consolidated firm and a 2.6% drop in total labor income. These effects are persistent even four years later. We show that the primary mechanism for this job loss is labor restructuring at consolidating firms. Specifically, workers with higher-than-expected pay relative to their human capital and workers with skills that are likely already present at acquirers are less likely to be retained.