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Workers, unions, and takeovers
How do takeovers affect workers’ wages and job security in the short-run? What role does the labor union play in mitigating these effects? I answer these two questions by analyzing wage and employment outcomes of over 4,000 public firms that were acquired between 1981 and 2002, using establishment-level data from the U.S. Census Bureau. I find that target establishments exhibit a net contraction in wages and employment, relative to comparable establishments after takeovers. Targets’ establishments in more unionized industries experience worse wage and employment outcomes after takeovers. These adverse effects are exacerbated when the establishment is located in a state with Right-to-work laws where unions face a less favorable bargaining environment. These findings indicate that target firms’ employees are negatively affected by takeovers and that their labor unions do not mitigate these negative effects.
History
Journal
Journal of labor researchVolume
33Issue
4Pagination
443 - 460Publisher
SpringerLocation
New York, N.Y.Publisher DOI
ISSN
0195-3613eISSN
1936-4768Language
engPublication classification
C1.1 Refereed article in a scholarly journalCopyright notice
2012, Springer Science+Business Media, LLCUsage metrics
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