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The Impact of Firm Acquisitions on Labor

In: Corporate Takeovers: Causes and Consequences

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  • Charles Brown
  • James L. Medoff

Abstract

In this paper, we investigate the changes in wages and employment following a firm's involvement in an acquisition, compared with firms not involved in acquisitions. Contrary to the tenor of popular press coverage of acquisitions, which focuses on hostile takeovers of large firms, we find small (and sometimes positive) changes in wages and employment following an acquisition.
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Suggested Citation

  • 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.
    • Handle: RePEc:nbr:nberch:2051
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