Worker-Plant Matching and Ownership Change

36 Pages Posted: 31 Oct 2019

See all articles by Ragnhild Balsvik

Ragnhild Balsvik

Norwegian School of Economics (NHH) - Department of Economics

Stefanie Haller

University College Dublin (UCD)

Date Written: 2019

Abstract

Is ownership change an opportunity for new owners to make systematic changes in the workforce of the acquired plant? We document changes to the workforce along observable and unobservable dimensions of worker quality around ownership change using matched employer-employee data. We observe above average separations of workers around domestic acquisitions. This is associated with a decline in unobserved worker quality in the plant. Foreign acquisitions are not associated with above average worker turnover, instead new foreign owners share rents with the high skilled workers that are already in the plant before the acquisition.

Keywords: multinational firms, acquisitions, worker reallocation, unobserved fixed effects

JEL Classification: F660, F230, J200

Suggested Citation

Balsvik, Ragnhild and Haller, Stefanie, Worker-Plant Matching and Ownership Change (2019). CESifo Working Paper No. 7906. Available at SSRN: https://ssrn.com/abstract=3477719

Ragnhild Balsvik (Contact Author)

Norwegian School of Economics (NHH) - Department of Economics ( email )

Helleveien 30
N-5035 Bergen
Norway

Stefanie Haller

University College Dublin (UCD) ( email )

Belfield, Dublin 4 4
Ireland

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