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Working Paper No. 1230

Are Foreign Private Equity Buyouts Bad for Workers?

Working Paper
Olsson, Martin and Joacim Tåg (2018). “Are Foreign Private Equity Buyouts Bad for Workers?”. IFN Working Paper No. 1230. Stockholm: Research Institute of Industrial Economics (IFN).

Martin Olsson, Joacim Tåg

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.