Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81519
Authors: 
Olsson, Martin
Tåg, Joacim
Year of Publication: 
2012
Series/Report no.: 
IFN Working Paper 906
Abstract: 
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.
Subjects: 
Buyouts
Employment
Financial Constraints
LBO
Private Equity
Restructuring
JEL: 
G24
G32
G34
J20
L25
Document Type: 
Working Paper

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