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Mergers and acquisitions, employment, wages, and plant closures in the U.S. meat product industries

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  • Sang V. Nguyen

    (Center for Economic Studies, U.S. Bureau of the Census, Washington, D.C., 20233)

  • Michael Ollinger

    (Economic Research Service, U.S. Department of Agriculture, Washington, D.C., 20005)

Abstract

The purpose of this article is to evaluate the impact of mergers and acquisitions (M&As) on wages, employment, and plant closures in the meat packing, prepared meat products, and poultry slaughter and processing industries during two merger periods, 1977-1987 and 1982-1992. The analysis relies on two balanced panel datasets of all plants owned by meat and poultry firms that existed in the 1977 Census of Manufacturing and survived until 1987 and another dataset of plants that existed in 1982 and survived until 1992. We find that (a) M&As are positively associated with wages in the meat packing and prepared meat products industries during 1977-1987, but not during 1982-1992; (b) changes in employment are positively related to M&As in all three meat and poultry industries during 1977-1987, but only in the poultry industry during 1982-1992; and (c) M&As are generally negatively associated with plant closures [EconLit. Citations: J630]. © 2009 wiley Periodicals, Inc.

Suggested Citation

  • Sang V. Nguyen & Michael Ollinger, 2009. "Mergers and acquisitions, employment, wages, and plant closures in the U.S. meat product industries," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 70-89.
    • Handle: RePEc:wly:agribz:v:25:y:2009:i:1:p:70-89
    DOI: 10.1002/agr.20186
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    2. Mathieu Bunel & Richard Duhautois & Lucie Gonzalez, 2010. "Are Mergers and Acquisitions Accompanied by Increasing Recourse to THS employment? A French perspective," Economics Bulletin, AccessEcon, vol. 30(1), pages 614-623.
    3. Ostapchuk, Igor & Gagalyuk, Taras & Curtiss, Jarmila, 2021. "Post-acquisition integration and growth of farms: The case of Ukrainian agroholdings," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(4), pages 615-636.
    4. Yanling Wang, 2013. "Exposure to FDI and new plant survival: evidence in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(1), pages 46-77, February.
    5. Sumit K. Majumdar & Rabih Moussawi & Ulku Yaylacicegi, 2019. "Mergers and Wages in Digital Networks: a Public Interest Perspective," Journal of Industry, Competition and Trade, Springer, vol. 19(4), pages 583-615, December.
    6. Ostapchuk, Igor & Gagalyuk, Taras & Curtiss, Jarmila, 2021. "Post-acquisition integration and growth of farms: the case of Ukrainian agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), April.
    7. Yanling Wang, 2010. "Exposure to FDI and New Plant Survival: Evidence in Canada," Carleton Economic Papers 10-05, Carleton University, Department of Economics.
    8. Giuseppe Bonazzi & Paolo Camanzi & Giovanni Ferri & Elisa Manghi & Mattia Iotti, 2021. "Economic Sustainability of Pig Slaughtering Firms in the Production Chain of Denomination of Origin Hams in Italy," Sustainability, MDPI, vol. 13(14), pages 1-18, July.

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