Should I stay or should I go? effects of being acquired on employee outcomes: evidence from Brazil

• Autores: Liwski, Joaquín Matías
• Año de publicación: 2024
• Idioma: inglés
• Tipo de recurso: tesis de maestría
• Colaborador/a o director/a de tesis: Ruzzier, Christian; Feinmann, Javier
• Institución: Universidad de San Andrés

Fil: Liwski, Joaquín Matías. Universidad de San Andrés. Departamento de Economía; Argentina.
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 log-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 log-wages and separation outcomes. Ultimately, the change in firm productivity or firm-specific wage premiums drives observed effects, underlining one mechanismn of M&A impacts on the workforce.