Firm Consolidation and Labor Market Outcomes
Using rich administrative data from the Netherlands, this paper studies the consequences of firm consolidation for workers. For workers at acquired firms, takeovers are associated with an 8.5 percent drop in employment at the consolidated firm and a 2.6 percent drop in total labor income. These effe...
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| Other Authors: | , , |
| Format: | eBook |
| Language: | English |
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Washington, D.C
The World Bank
2023
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| Subjects: | |
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| Collection: | World Bank E-Library Archive - Collection details see MPG.ReNa |
| Summary: | Using rich administrative data from the Netherlands, this paper studies the consequences of firm consolidation for workers. For workers at acquired firms, takeovers are associated with an 8.5 percent drop in employment at the consolidated firm and a 2.6 percent drop in total labor income. These effects are persistent even four years later. The paper shows that the primary mechanism for this job loss is labor restructuring at consolidating firms. 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 |
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| Physical Description: | 49 pages |