Shocks to Firm Organization – The Case of Foreign Acquisitions

Michael Koch, Luca Macedoni and Angelina Odintsova

No 11525, CESifo Working Paper Series from CESifo

Abstract: This paper studies how foreign acquisitions affect firms’ internal labor organization, particularly occupational switching. This focus is inspired by new stylized facts we document using linked employer-employee data from Denmark: while the total number of occupations and hierarchical layers in firms remains stable, a significant share of firms simultaneously add and drop occupations and layers each year. Applying a dynamic two-way fixed effects matching estimator, we find that foreign acquisitions lead to significant reorganization within firms: though the number of layers or occupations remains unchanged, firms exhibit substantial occupational churning among existing workers, especially among higher-paid employees.

Keywords: occupation switching; firm organization; foreign acquisitions (search for similar items in EconPapers)
JEL-codes: D22 D24 F23 G34 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11525

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