The Real Effects of Private Equity Buyouts
Private equity buyouts have become a common element in the industrial development process. I survey the literature on the real economic effect of buyouts: employment, wages, productivity, and long-run investments. Employment tend to marginally fall after a buyout in most countries studied, with the exception being France. There are clear evidence of productivity gains following a buyout, with part of these being shared with worker through higher wages. The evidence is mixed regarding effects on long-run investments.
|Date of creation:||09 Sep 2010|
|Date of revision:|
|Publication status:||Published in The Oxford Handbook of Private Equity, Cumming, Douglas (eds.), 2012, chapter 10, Oxford University Press.|
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