EconPapers    
Economics at your fingertips  
 

Do Hostile Takeovers Reduce Extramarginal Wage Payments?

Jagadeesh Gokhale, Erica Groshen and David Neumark

The Review of Economics and Statistics, 1995, vol. 77, issue 3, 470-85

Abstract: We study the relationship between proxies for extramarginal wage payments and subsequent hostile takeover activity, and find little evidence that the takeovers are motivated by the expropriation of extramarginal wages. Then, using data on wage and employment structures both before and after takeovers, we investigate whether proxies for extramarginal wage payments drop after hostile takeovers. The ex post experiments provide evidence consistent with one version of the expropriation hypothesis. Although our findings do not suggest that hostile takeovers reduce workers' shares of rents, such takeovers do appear to reduce extra marginal wage payments to more-tenured workers in two ways: first, by reducing employment of more-senior workers; and second, by flattening wage-seniority profiles in firms or establishments with relatively senior work forces. Copyright 1995 by MIT Press.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (52)

Downloads: (external link)
http://links.jstor.org/sici?sici=0034-6535%2819950 ... 0.CO%3B2-5&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Do Hostile Takeovers Reduce Extramarginal Wage Payments? (1993) Downloads
Working Paper: Do hostile takeovers reduce extramarginal wage payments? (1992) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:77:y:1995:i:3:p:470-85

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().

 
Page updated 2025-03-22
Handle: RePEc:tpr:restat:v:77:y:1995:i:3:p:470-85