The Effects of Mergers on Company Employment in the USA and Europe
35 Pages Posted: 1 Mar 2004
We systematically analyse the effects of mergers and acquisitions on the demand for labour in the USA and Europe. We do not find adverse effects of mergers on labour demand in the USA, however we do find negative effects in Europe of the order of -10% compared to pre-merger levels. We attribute this significant difference to more rigid labour markets in Europe than in the USA.
Keywords: Mergers and acquisitions, labour demand, restructuring, international comparison
JEL Classification: G34, L2
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