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The Wage and Employment Consequences of Ownership Change

Amess, Kevin; Girma, Sourafel; Wright, Mike


Professor of Industrial Economics

Mike Wright


This paper provides a comparative examination of the consequences of leveraged buyouts (LBOs) and corporate takeovers on employment growth and wage growth. Employing both difference-in-differences combined with propensity score matching and the control function approach, we find evidence that (i) wages remain unchanged after either a private equity (PE)-backed or non-PE-backed LBO, (ii) wages remain unchanged after an unrelated takeover and (iii) related takeovers have negative employment consequences, possibly because of rationalisation. Our evidence does not find strong support for intervention in the market for corporate control on the grounds of protecting employees' welfare. © 2013 The Authors. Managerial and Decision Economics published by John Wiley & Sons, Ltd.


Amess, K., Girma, S., & Wright, M. (2014). The Wage and Employment Consequences of Ownership Change. Managerial and Decision Economics, 35(2), 161-171.

Journal Article Type Article
Acceptance Date May 13, 2013
Online Publication Date Sep 23, 2013
Publication Date 2014-03
Deposit Date Mar 27, 2014
Publicly Available Date Mar 27, 2014
Journal Managerial and Decision Economics
Print ISSN 0143-6570
Electronic ISSN 0143-6570
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 35
Issue 2
Pages 161-171
Public URL
Publisher URL
Copyright Statement Copyright information regarding this work can be found at the following address:


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