This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Do Hostile Takeovers Reduce Extramarginal Wage Payments?

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Gokhale, Jagadeesh
Groshen, Erica L
Neumark, David

Additional information is available for the following registered author(s):

Abstract

We study the relationship between proxies for extramarginal wage payments and subsequent hostile takeover activity, and find little evidence that the takeovers are motivated by the expropriation of extramarginal wages. Then, using data on wage and employment structures both before and after takeovers, we investigate whether proxies for extramarginal wage payments drop after hostile takeovers. The ex post experiments provide evidence consistent with one version of the expropriation hypothesis. Although our findings do not suggest that hostile takeovers reduce workers' shares of rents, such takeovers do appear to reduce extra marginal wage payments to more-tenured workers in two ways: first, by reducing employment of more-senior workers; and second, by flattening wage-seniority profiles in firms or establishments with relatively senior work forces. Copyright 1995 by MIT Press.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0034-6535%28199508%2977%3A3%3C470%3ADHTREW%3E2.0.CO%3B2-5&origin=bc
File Format: application/pdf
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 77 (1995)
Issue (Month): 3 (August)
Pages: 470-85
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:tpr:restat:v:77:y:1995:i:3:p:470-85

Contact details of provider:
Web page: http://mitpress.mit.edu/journals/

Order Information:
Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Other versions of this item:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Akerlof, George A, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 543-69, November. [Downloadable!] (restricted)
  2. Loewenstein, George F & Sicherman, Nachum, 1991. "Do Workers Prefer Increasing Wage Profiles?," Journal of Labor Economics, University of Chicago Press, vol. 9(1), pages 67-84, January. [Downloadable!] (restricted)
  3. Erica L. Groshen, 1991. "Rising inequality in a salary survey: another piece of the puzzle," Working Paper 9121, Federal Reserve Bank of Cleveland. [Downloadable!]
  4. David Neumark & Steven A. Sharpe, 1992. "Hostile Takeovers and Expropriation of Extramarginal Wages: A Test," NBER Working Papers 4101, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. William T. Dickens & Lawrence F. Katz, 1987. "Interindustry Wage Differences and Industry Characteristics," NBER Working Papers 2014, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Blackburn, McKinley & Neumark, David, 1992. "Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1421-36, November. [Downloadable!] (restricted)
    Other versions:
  7. Steven N. Kaplan & Jeremy C. Stein, 1993. "The Evolution of Buyout Pricing and Financial Structure," NBER Working Papers 3695, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Gibbons, Robert & Katz, Lawrence F, 1992. "Does Unmeasured Ability Explain Inter-industry Wage Differentials?," Review of Economic Studies, Blackwell Publishing, vol. 59(3), pages 515-35, July. [Downloadable!] (restricted)
    Other versions:
  9. David Neumark & Michael L. Wachter, 1992. "Union Threat Effects and Nonunion Industry Wage Differentials," NBER Working Papers 4046, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Petersen, Mitchell A, 1992. "Pension Reversions and Worker-Stockholder Wealth Transfers," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 1033-56, August. [Downloadable!] (restricted)
  11. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March. [Downloadable!] (restricted)
  12. Frank R Lichtenberg & Donald Siegel, 1989. "The Effect Of Takeovers On The Employment And Wages Of Central-Office And Other Personnel," Working Papers 89-3, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  13. Groshen, Erica L, 1991. "Sources of Intra-industry Wage Dispersion: How Much Do Employers Matter?," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 869-84, August. [Downloadable!] (restricted)
  14. Laurence J. Kotlikoff & David A. Wise, 1987. "Labor Compensation and the Structure of Private Pension Plans: Evidencefor Contractual Versus Spot Labor Markets," NBER Working Papers 1290, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  15. Charles Brown & James L. Medoff, 1988. "The Impact of Firm Acquisitions on Labor," NBER Chapters, in: Corporate Takeovers: Causes and Consequences, pages 9-32 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
  16. Jeffrey Pontiff & Andrei Shleifer & Michael S. Weisbach, 1990. "Reversions of Excess Pension Assets after Takeovers," RAND Journal of Economics, The RAND Corporation, vol. 21(4), pages 600-613, Winter. [Downloadable!] (restricted)
  17. David Neumark, 1992. "Are Rising Wage Profiles a Forced-Saving Mechanism?," NBER Working Papers 4213, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. Amar Bhide, 1989. "The Causes And Consequences Of Hostile Takeovers," Journal of Applied Corporate Finance, Morgan Stanley, vol. 2(2), pages 36-59. [Downloadable!] (restricted)
  19. Levine, David I, 1993. "Fairness, Markets, and Ability to Pay: Evidence from Compensation Executives," American Economic Review, American Economic Association, vol. 83(5), pages 1241-59, December. [Downloadable!] (restricted)
  20. Lorne Carmichael, 1981. "Firm-Specific Human Capital and Promotion Ladders," Working Papers 452, Queen's University, Department of Economics.
    Other versions:
  21. Lazear, Edward P & Moore, Robert L, 1984. "Incentives, Productivity, and Labor Contracts," The Quarterly Journal of Economics, MIT Press, vol. 99(2), pages 275-96, May. [Downloadable!] (restricted)
  22. Rosett, Joshua G., 1990. "Do union wealth concessions explain takeover premiums? : The evidence on contract wages," Journal of Financial Economics, Elsevier, vol. 27(1), pages 263-282, September. [Downloadable!] (restricted)
  23. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December. [Downloadable!] (restricted)
  24. Andrei Shleifer & Lawrence H. Summers, 1988. "Breach of Trust in Hostile Takeovers," NBER Chapters, in: Corporate Takeovers: Causes and Consequences, pages 33-68 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
  25. Julie L. Hotchkiss, 1990. "Compensation policy and firm performance: An annotated bibliography of machine-readable data files," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(3), pages 274-289, February.
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Leora Friedberg & Michael Owyang, 2004. "Explaining the Evolution of Pension Structure and Job Tenure," NBER Working Papers 10714, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. John S. Earle & Almos Telegdy, 2007. "Ownership and Wages: Estimating Public-Private and Foreign-Domestic Differentials with LEED from Hungary, 1986–2003," Staff Working Papers 07-134, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  3. Brown, J. David & Earle, John S. & Telegdy, Álmos, 2008. "Employment and Wage Effects of Privatization: Evidence from Hungary, Romania, Russia, and Ukraine," IZA Discussion Papers 3688, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Robert H McGuckin & Sang V Nguyen, 2000. "The Impact of Ownership Changes: A View from Labor Markets," Working Papers 00-02, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  5. Erica Groshen, 1996. "American employer salary surveys and labor economics research: issues and contributions," Research Paper 9604, Federal Reserve Bank of New York. [Downloadable!]
    Other versions:
  6. Kjell Erik Lommerud & Odd Rune Straume & Lars Sorgard, . "Merger Profitability in Unionized Oligopoly," University of California at Santa Barbara, Economics Working Paper Series 10-00, Department of Economics, UC Santa Barbara. [Downloadable!]
    Other versions:
  7. Lars-Hendrik Röller & Johan Stennek & Frank Verboven, 2000. "Efficiency Gains from Mergers," CIG Working Papers FS IV 00-09, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
    Other versions:
  8. David N. Margolis, 2006. "Should Employment Authorities Worry About Mergers and Acquisitions?," IZA Discussion Papers 1994, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. John S. Earle & Ãlmos Telegdy, 2007. "Ownership and Wages: Estimating Public-Private and Foreign-Domestic Differentials using LEED from Hungary, 1986-2003," NBER Working Papers 12997, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  10. Anthony P. Thirwall, 1972. "A Cross-Section Study of Population Growth and the Growth of Output and Per Capita Income in a Production Function Framework," Working Papers 406, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  11. Younghwan Song, 2009. "Training, Technological Changes, and Displacement," Journal of Labor Research, Springer, vol. 30(3), pages 201-218, September. [Downloadable!] (restricted)
  12. Marianne Bertrand & Sendhil Mullainathan, 1998. "Is There Discretion in Wage Setting? A Test Using Takeover Legislation," NBER Working Papers 6807, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Huck, Steffen & Seltzer, Andrew J. & Wallace, Brian, 2004. "Deferred Compensation and Gift Exchange: An Experimental Investigation into Multi-Period Labor Markets," IZA Discussion Papers 1193, Institute for the Study of Labor (IZA). [Downloadable!]
  14. Steven G. Allen & Robert L. Clark & Sylvester J. Schieber, 1999. "Has Job Security Vanished in Large Corporations?," NBER Working Papers 6966, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. repec:fth:prinin:406 is not listed on IDEAS
  16. Lommerud, Kjell Erik & Sørgard, Lars & Straume, Odd Rune, 2003. "National versus International Mergers in Unionised Oligopoly," CEPR Discussion Papers 4040, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  17. Filippo Ippolito, 2005. "Takeover Defenses, Firm-Specific Skills and Managerial Entrenchment," OFRC Working Papers Series 2005fe13, Oxford Financial Research Centre. [Downloadable!]
  18. Lommerud, Kjell Erik & Straume , Odd Rune & Sorgard, Lars, 2002. "Downstream Merger with Oligopolistic Input Suppliers," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  19. Leora Friedberg & Michael T. Owyang & Tara M. Sinclair, 2006. "Searching for better prospects: endogenizing falling job tenure and private pension coverage," Working Papers 2003-038, Federal Reserve Bank of St. Louis. [Downloadable!]
    Other versions:
  20. David Neumark, 2001. "Age Discrimination Legislation in the United States," NBER Working Papers 8152, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
Statistics
Access and download statistics

Did you know? LogEc provides statistical analysis about downloads from this service (and others).

This page was last updated on 2009-11-16.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.