Should I stay or should I go? effects of being acquired on employee outcomes: evidence from Brazil
Date
2024-02
Authors
Liwski, Joaquín Matías
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Ruzzier, Christian
Feinmann, Javier
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
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 mechanismn of M&A impacts on the workforce.
Description
Fil: Liwski, Joaquín Matías. Universidad de San Andrés. Departamento de Economía; Argentina.