Private equity, layoffs, and job polarization

Arbeitspapier

Although private equity firms are often criticized for layoffs, little evidence exists regarding which employees lose their jobs and why. We argue that explanations for the job polarization process can also explain layoffs after buyouts. Buyouts reduce agency problems, which triggers automation, offshoring, and tougher bargaining with labor unions. We show that workers in less productive firms who perform routine or offshorable job tasks are more likely to lose their jobs. The opposite trend holds for workers who perform non-routine or non-offshorable job tasks. Moreover, workers who belong to aggressive labor unions are more likely to lose their jobs.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 1068

Classification and Topics

• Classification: Wirtschaft ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General
• Subject: Employment ; job polarization ; labor unions ; private equity buyouts ; leveraged buyouts ; offshoring ; restructuring ; task-biased technological change ; unemployment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Olsson, Martin ; Tåg, Joacim
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/129631
• Last update: 10.03.2025, 11:42 AM CET