Are Foreign Private Equity Buyouts Bad for Workers?

9 Pages Posted: 19 Aug 2018

See all articles by Martin Olsson

Martin Olsson

Research Institute of Industrial Economics (IFN)

Joacim Tåg

Research Institute of Industrial Economics (IFN)

Date Written: May 2018

Abstract

The media often cast foreign private equity firms as villains who gamble with local jobs. We use detailed registry data from Sweden to show that foreign buyouts have not affected workers' labor market outcomes. But domestic buyouts have. They have increased unemployment incidence by a fifth, duration by a third, and lowered labor income by seven percent.

Keywords: Buyouts, Cross-Border, Employment, Foreign, LBOs, Private Equity, Workers

JEL Classification: G24, J20

Suggested Citation

Olsson, Martin and Tåg, Joacim, Are Foreign Private Equity Buyouts Bad for Workers? (May 2018). Available at SSRN: https://ssrn.com/abstract=3226902 or http://dx.doi.org/10.2139/ssrn.3226902

Martin Olsson

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Joacim Tåg (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

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