Working Paper No. 851

The Real Effects of Private Equity Buyouts

Published: September 9, 2010Pages: 25Keywords: Employment; Innovation; Leveraged Buyouts; Long-run investments; Private equity buyouts; Productivity; Real effectsJEL-codes: G20; G30; G34; J20; L20
Published version

The Real Effects of Private Equity Buyouts Joacim Tåg


Private equity buyouts have become a common element in the industrial development process. I survey the literature on the real economic effect of buyouts: employment, wages, productivity, and long-run investments. Employment tends to marginally fall after a buyout in most countries studied, with France being the exception. There are clear evidence of productivity gains following a buyout, with part of these being shared with workers through higher wages. The evidence is mixed regarding the effects on long-run investments.

Joacim Tåg

Contact

Ph: +46 8 665 4524
joacim.tag@ifn.se

Interdisciplinary European Studies

The European Union in a Changing World Order

Pages-from-2019-Oxelheim-m.gif

This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se