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The Wage and Employment Consequences of Ownership Change

Amess, Kevin; Girma, Sourafel; Wright, Mike

Authors

Kevin Amess

Sourafel Girma

Mike Wright



Abstract

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.

Journal Article Type Article
Publication Date 2014-03
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
APA6 Citation Amess, K., Girma, S., & Wright, M. (2014). The Wage and Employment Consequences of Ownership Change. Managerial and Decision Economics, 35(2), 161-171. https://doi.org/10.1002/mde.2650
DOI https://doi.org/10.1002/mde.2650
Publisher URL http://onlinelibrary.wiley.com/doi/10.1002/mde.2650/abstract
Copyright Statement Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc/4.0

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc/4.0





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