Enemy of Labour? Analysing the Employment Effects of Mergers and Acquisitions

Labour Institute for Economic Research Discussion Paper No. 221

33 Pages Posted: 10 Sep 2006

See all articles by Petri Bockerman

Petri Bockerman

Labour Institute for Economic Research; University of Turku - Turku School of Economics

Eero Lehto

Labour Institute for Economic Research

Date Written: August 2006

Abstract

This paper analyses the employment effects of mergers and acquisitions (M&As) by using matched establishment-level data from Finland over the period 1989-2003. The data covers all sectors. We compare the employment effects of cross-border M&As with the effects arising from two different types of domestic M&As and internal restructurings. The results reveal that cross-border M&As lead to downsizing in manufacturing employment. The effects of cross-border M&As on employment in non-manufacturing are much weaker. Changes in ownership associated with domestic M&As and internal restructurings also typically cause employment losses, but they exhibit an interesting sectoral variation.

Keywords: mergers and acquisitions, M&As, takeovers, employment, workforce

JEL Classification: G34, J23, L23

Suggested Citation

Bockerman, Petri and Lehto, Eero, Enemy of Labour? Analysing the Employment Effects of Mergers and Acquisitions (August 2006). Labour Institute for Economic Research Discussion Paper No. 221, Available at SSRN: https://ssrn.com/abstract=929066 or http://dx.doi.org/10.2139/ssrn.929066

Petri Bockerman (Contact Author)

Labour Institute for Economic Research ( email )

FIN-00530 Helsinki
Finland
+358 9 2535 7332 (Phone)
+358 9 2535 7332 (Fax)

HOME PAGE: http://www.petribockerman.fi/

University of Turku - Turku School of Economics ( email )

Rehtorinpellonkatu 3
TURKU, FI-20500
Finland

Eero Lehto

Labour Institute for Economic Research ( email )

FIN-00530 Helsinki
Finland

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