Arbeitspapier
Private Equity and Employees
Using linked employer-employee data from Sweden, a difference-in-difference approach, and 201 private equity buyouts undertaken between 1998 and 2004, we show that unemployment risk declines and labor income increases for employees in the wake of a private equity buyout. Unemployment risk declines despite lower employment growth for continuing establishments attributable to hiring freezes rather than to layoffs and a lack of change in firm level employment growth. A plausible explanation is relaxed financial constraints: the effects are strongest in industries dependent on external finance for growth, for non-divisional buyouts, and for buyouts just prior to 2001.
- Language
-
Englisch
- Bibliographic citation
-
Series: IFN Working Paper ; No. 906
- Classification
-
Wirtschaft
Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Demand and Supply of Labor: General
Firm Performance: Size, Diversification, and Scope
- Subject
-
Buyouts
Employment
Financial Constraints
LBO
Private Equity
Restructuring
Risikokapital
Übernahme
Beschäftigung
Organisatorischer Wandel
Schweden
- Event
-
Geistige Schöpfung
- (who)
-
Olsson, Martin
Tåg, Joacim
- Event
-
Veröffentlichung
- (who)
-
Research Institute of Industrial Economics (IFN)
- (where)
-
Stockholm
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Olsson, Martin
- Tåg, Joacim
- Research Institute of Industrial Economics (IFN)
Time of origin
- 2012
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