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Merger Synergies, Task Exposure, and Worker Careers

Author

Listed:
  • Gardberg, Malin

    (Research Institute of Industrial Economics (IFN), Stockholm, Sweden,)

  • Heyman, Fredrik

    (Research Institute of Industrial Economics (IFN))

  • Tåg, Joacim

    (Research Institute of Industrial Economics (IFN))

Abstract

We study the worker-level incidence of technology-related merger synergies by following incumbent target workers around acquisitions, whether or not they remain with the firm. Average acquisition wage effects are close to zero, but acquisitions redistribute gains and losses across task groups if the acquirer has a technological advantage. Workers in substitutable occupations experience a relative wage decline. Workers in complementary occupations gain. Acquired firms also receive more foreign managers, and IT spending rises. Thus, technology-related merger synergies can appear neutral for workers on average while changing the relative value of tasks within firms and having long-run spillovers on workers' careers.

Suggested Citation

  • Gardberg, Malin & Heyman, Fredrik & Tåg, Joacim, 2023. "Merger Synergies, Task Exposure, and Worker Careers," Working Paper Series 1457, Research Institute of Industrial Economics, revised 18 Jun 2026.
    • Handle: RePEc:hhs:iuiwop:1457
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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