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

Research Institute of Industrial Economics

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

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
Pages (from-to)	1-4
Number of pages	4
Journal	Economics Letters
Volume	172
DOIs	https://doi.org/10.1016/j.econlet.2018.08.002
Publication status	Published - 2018 Nov 1
Externally published	Yes

Subject classification (UKÄ)

Economics

Free keywords

Buyouts
Cross-border
Employment
Foreign
LBOs
Private equity
Workers
G24
J20

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.econlet.2018.08.002

Cite this

@article{e8276df2a6934e3683aeb1eed1ee3410,

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, G24, J20",

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

year = "2018",

month = nov,

day = "1",

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

language = "English",

volume = "172",

pages = "1--4",

journal = "Economics Letters",