The Real Effects of Private Equity Buyouts

Joacim Tåg

No 851, Working Paper Series from Research Institute of Industrial Economics

Abstract: Private equity buyouts have become a common element in the industrial development process. I survey the literature on the real economic effect of buyouts: employment, wages, productivity, and long-run investments. Employment tend to marginally fall after a buyout in most countries studied, with the exception being France. There are clear evidence of productivity gains following a buyout, with part of these being shared with worker through higher wages. The evidence is mixed regarding effects on long-run investments.

Keywords: Employment; Innovation; Leveraged Buyouts; Long-run investments; Private equity buyouts; Productivity; Real effects (search for similar items in EconPapers)
JEL-codes: G20 G30 G34 J20 L20 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2010-09-09
References: View references in EconPapers View complete reference list from CitEc
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Published in The Oxford Handbook of Private Equity, Cumming, Douglas (eds.), 2012, chapter 10, Oxford University Press.

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