The Impact of Firm Acquisitions on Labor
28 Pages Posted: 7 Aug 2007 Last revised: 20 Mar 2022
Date Written: June 1987
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.
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