News

New study: M&A and spillover effects on workers

2017-05-10


On Wednesday Ashwini Agrawal, London School of Economics, presented a study at IFN. The question asked in the study is whether mergers can have positive spillover effects on workers. It is often assumed that mergers lead to mass layoffs and other cost-cutting measures. Agrawal and his co-author find that information technology plays a major role in explaining M&A activity.  The authors observe that workers of acquired firms, who are exposed to upgrades in production technologies, after their employers are acquired by IT-intensive firms experience higher long-run wages and shorter spells of unemployment.

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