Firm Consolidation and Labor Market Outcomes

Sabien Dobbelaere, Grace McCormack, Daniel Prinz () and Sándor Sóvágó
Additional contact information
Grace McCormack: University of Southern California
Sándor Sóvágó: University of Groningen

No 22-085/V, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: Using rich administrative data from the Netherlands, we study the consequences of firm consolidation for workers. For workers at acquired firms, takeovers are associated with a 8.5% drop in employment at the consolidated firm and a 2.6% drop in total labor income. These effects are persistent even four years later. We show that the primary mechanism for this job loss is labor restructuring at consolidating firms. Specifically, 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.

Keywords: Takeovers; labor market outcomes; labor restructuring (search for similar items in EconPapers)
JEL-codes: G34 J2 J3 M51 (search for similar items in EconPapers)
Date: 2022-11-13
New Economics Papers: this item is included in nep-bec, nep-eur, nep-hrm and nep-lma
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https://papers.tinbergen.nl/22085.pdf (application/pdf)

Related works:
Working Paper: Firm Consolidation and Labor Market Outcomes (2023)
Working Paper: Firm consolidation and labor market outcomes (2022)
Working Paper: Firm Consolidation and Labor Market Outcomes (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20220085

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