Are foreign private equity buyouts bad for workers?

Martin Olsson; Joacim Tåg

doi:10.1016/j.econlet.2018.08.002

Are foreign private equity buyouts bad for workers?

Martin Olsson, Joacim Tåg^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › Scientific › peer-review

1 Citation (Scopus)

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.

Original language	English
Peer-reviewed scientific journal	Economics Letters
Volume	172
Pages (from-to)	1-4
Number of pages	4
ISSN	0165-1765
DOIs	https://doi.org/10.1016/j.econlet.2018.08.002
Publication status	Published - 11.2018
Externally published	Yes
MoE publication type	A1 Journal article - refereed

Keywords

Buyouts
Cross-border
Employment
Foreign
LBOs
Private equity
Workers

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Cite this

@article{1ea8c2737c2245eba9298045960ed098,

title = "Are foreign private equity buyouts bad for workers?",

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{\textquoteright} 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.",

keywords = "Buyouts, Cross-border, Employment, Foreign, LBOs, Private equity, Workers",

author = "Martin Olsson and Joacim T{\aa}g",

note = "Publisher Copyright: {\textcopyright} 2018 Elsevier B.V.",

year = "2018",

month = nov,

doi = "10.1016/j.econlet.2018.08.002",

language = "English",

volume = "172",

pages = "1--4",

journal = "Economics Letters",