The effect of mergers on employment and wages: Evidence from Japan

Katsuyuki Kubo and Takuji Saito

Journal of the Japanese and International Economies, 2012, vol. 26, issue 2, 263-284

Abstract: This study investigates the impact of mergers on employment and employees’ wages in Japan, based on 111 mergers between listed firms observed between 1990 and 2003. Typically, the number of employees decreases by 4.45% three years after a merger, even after changes in sales and other variables are controlled. Firms that experience related mergers, and rescue mergers are more likely to decrease the number of workers. At the same time, wages increase by 5.46% per employee. These results suggest that the main motivation behind mergers is not to divest employees of their wealth.

Keywords: Merger; Employment adjustment; Wage; Japan (search for similar items in EconPapers)
JEL-codes: G3 J2 J3 L2 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:26:y:2012:i:2:p:263-284

DOI: 10.1016/j.jjie.2011.04.001

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