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Enemy of Labour? Analysing the Employment Effects of Mergers and Acquisitions

Author

Listed:
  • Petri Böckerman

    (Palkansaajien tutkimuslaitos)

  • Eero Lehto
Abstract
This paper analyses the employment effects of mergers and acquisitions (M&As) by using matched establishment-level data from Finland over the period 1989-2003. The data covers all sectors. We compare the employment effects of cross-border M&As with the effects arising from two different types of domestic M&As and internal restructurings. The results reveal that cross-border M&As lead to downsizing in manufacturing employment. The effects of cross-border M&As on employment in non-manufacturing are much weaker. Changes in ownership associated with domestic M&As and internal restructurings also typically cause employment losses, but they exhibit an interesting sectoral variation.

Suggested Citation

  • Petri Böckerman & Eero Lehto, 2006. "Enemy of Labour? Analysing the Employment Effects of Mergers and Acquisitions," Working Papers 221, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    • Handle: RePEc:pst:wpaper:221
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    References listed on IDEAS

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    More about this item

    Keywords

    mergers and acquisitions; M&As; takeovers; employment; workforce;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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