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Are Foreign Private Equity Buyouts Bad for Workers?

Author

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  • Olsson, Martin

    (Research Institute of Industrial Economics (IFN))

  • Tåg, Joacim

    (Research Institute of Industrial Economics (IFN))

Abstract

The media often cast foreign private equity firms as villains who gamble with local jobs. We use detailed registry data from Sweden to show that foreign buyouts have not affected workers' labor market outcomes. But domestic buyouts have. They have increased unemployment incidence by a fifth, duration by a third, and lowered labor income by seven percent.

Suggested Citation

  • Olsson, Martin & Tåg, Joacim, 2018. "Are Foreign Private Equity Buyouts Bad for Workers?," Working Paper Series 1230, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1230
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    References listed on IDEAS

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    Cited by:

    1. Olsson, Martin & Tåg, Joacim, 2023. "From Wall Street to Work Floor: How Private Equity Buyouts Affect Workers," Working Paper Series 1475, Research Institute of Industrial Economics.
    2. Gardberg, Malin & Heyman, Fredrik & Tåg, Joacim, 2023. "Importing Automation and Wage Inequality through Foreign Acquisitions," Working Paper Series 1457, Research Institute of Industrial Economics.

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    More about this item

    Keywords

    Buyouts; Cross-border; Employment; Foreign; LBOs; Private Equity; Workers;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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