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...

Full description

Bibliographic Details
Main Author: Dobbelaere, Sabien
Other Authors: Prinz, Daniel, McCormack, Grace, Sovago, Sandor
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2023
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
LEADER 01575nmm a2200301 u 4500
001 EB002177186
003 EBX01000000000000001314720
005 00000000000000.0
007 cr|||||||||||||||||||||
008 231006 ||| eng
100 1 |a Dobbelaere, Sabien 
245 0 0 |a Firm Consolidation and Labor Market Outcomes  |h Elektronische Ressource  |c Sabien Dobbelaere 
260 |a Washington, D.C  |b The World Bank  |c 2023 
300 |a 49 pages 
653 |a Labor Restructuring 
653 |a Takeover 
653 |a Health, Nutrition and Population 
653 |a Health Insurance 
653 |a Labor Market Outcome 
700 1 |a Prinz, Daniel 
700 1 |a McCormack, Grace 
700 1 |a Sovago, Sandor 
041 0 7 |a eng  |2 ISO 639-2 
989 |b WOBA  |a World Bank E-Library Archive 
028 5 0 |a 10.1596/1813-9450-10477 
856 4 0 |u http://elibrary.worldbank.org/doi/book/10.1596/1813-9450-10477  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a 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