Template-Type: ReDIF-Paper 1.0
Author-Name: Liwski Joaquín Matías
Author-Name-First: Joaquín Matías
Author-Name-Last: Liwski
Title: Should I stay or should I go? Effects of being acquired on employee outcomes: evidence from Brazil.
Abstract: This paper examines the diverse impacts of corporate acquisitions on employees with data from Brazil's formal employment sector (RAIS survey, 2007-2015) and the Thomson Reuters SDC Platinum Database. Employing a matched event studies design, I navigate labor market complexities, revealing heterogeneous effects at individual and firm levels. Notably, the analysis uncovers a significant short-term increase in wages for individuals in acquired firms, particularly in the immediate 0 to 1 years following events; however, separation outcomes predominantly occur in the same year as the acquisition. Job changes play a pivotal role, with incumbents and voluntary leavers experiencing positive outcomes, while involuntary terminations lead to declines, also in the long-run. The study explores age-related, educational, skill-based, and occupational differences, showing diverse impacts across these dimensions. Additionally, firm size emerges as a critical factor, influencing wages and separation outcomes. Ultimately, the change in firm productivity or firm-specific wage premiums drives observed effects, underlining one mechanism of M&A impacts on the workforce.
Length:  37 pages
Creation-Date:  2024-11
File-URL: https://aaep.org.ar/works/works2024/4740.pdf
File-Format: Application/pdf
Number: 4740
Classification-JEL: J3, J6
Handle: RePEc:aep:anales:4740