Should I stay or should I go? Effects of being acquired on employee outcomes: evidence from Brazil

Joaquín Liwski

No 13, Young Researchers Working Papers from Universidad de San Andres, Departamento de Economia

Abstract: This paper examines the diverse impacts of corporate acquisitions on employees with data from Brazil’s formal employment sector (RAIS survey, 2007-2015) and the Thomson Reuters SDC Platinum Database. Employing a matched event studies design, I navigate labor market complexities, revealing heterogeneous effects at individual and firm levels. Notably, the analysis uncovers a significant short-term increase in log-wages for individuals in acquired firms, particularly in the immediate 0 to 1 years following events; however, separation outcomes predominantly occur in the same year as the acquisition. Job changes play a pivotal role, with incumbents and voluntary leavers experiencing positive outcomes, while involuntary terminations lead to declines, also in the long-run. The study explores age-related, educational, skill-based, and occupational differences, showing diverse impacts across these dimensions. Additionally, firm size emerges as a critical factor, influencing log-wages and separation outcomes. Ultimately, the change in firm productivity or firm-specific wage premiums drives observed effects, underlining one mechanism of M&A impacts on the workforce.

Pages: 40 pages
Date: 2023-02, Revised 2023-02
New Economics Papers: this item is included in nep-cdm and nep-pol
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https://webacademicos.udesa.edu.ar/pub/econ/ydoc13.pdf

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Working Paper: Should I stay or should I go? Effects of being acquired on employee outcomes: evidence from Brazil (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:sad:ypaper:13

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