Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129631
Authors: 
Olsson, Martin
Tåg, Joacim
Year of Publication: 
2015
Series/Report no.: 
IFN Working Paper 1068
Abstract: 
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.
Subjects: 
Employment
job polarization
labor unions
private equity buyouts
leveraged buyouts
offshoring
restructuring
task-biased technological change
unemployment
JEL: 
G32
G34
J60
Document Type: 
Working Paper

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