Private equity, layoffs, and job polarization
Olsson, Martin and Tåg, Joacim LU
(2017)
In Journal of Labor Economics
35(3).
p.697-754
- Abstract
Private equity firms are often criticized for laying off workers, but the evidence on who loses their jobs and why is scarce. This paper argues that explanations for job polarization also explain layoffs after private equity buyouts. Buyouts reduce agency problems, which triggers automation and off shoring. Using rich employer-employee data, we show that buyouts generally do not affect unemployment incidence. However, unemployment incidence doubles for workers in less productive firms who performroutine or offshorable job tasks. Job polarization is also much more marked among workers affected by buyouts than for the economy at large.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1cced02f-34d2-4ec6-9d22-e3ab0155594c
- author
- Olsson, Martin
and Tåg, Joacim
LU
- publishing date
- 2017-01-01
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Journal of Labor Economics
- volume
- 35
- issue
- 3
- pages
- 58 pages
- publisher
- University of Chicago Press
- external identifiers
-
- scopus:85016137872
- ISSN
- 0734-306X
- DOI
- 10.1086/690712
- language
- English
- LU publication?
- no
- id
- 1cced02f-34d2-4ec6-9d22-e3ab0155594c
- date added to LUP
- 2020-01-23 15:49:38
- date last changed
- 2022-04-18 20:26:15
@article{1cced02f-34d2-4ec6-9d22-e3ab0155594c,
abstract = {{<p>Private equity firms are often criticized for laying off workers, but the evidence on who loses their jobs and why is scarce. This paper argues that explanations for job polarization also explain layoffs after private equity buyouts. Buyouts reduce agency problems, which triggers automation and off shoring. Using rich employer-employee data, we show that buyouts generally do not affect unemployment incidence. However, unemployment incidence doubles for workers in less productive firms who performroutine or offshorable job tasks. Job polarization is also much more marked among workers affected by buyouts than for the economy at large.</p>}},
author = {{Olsson, Martin and Tåg, Joacim}},
issn = {{0734-306X}},
language = {{eng}},
month = {{01}},
number = {{3}},
pages = {{697--754}},
publisher = {{University of Chicago Press}},
series = {{Journal of Labor Economics}},
title = {{Private equity, layoffs, and job polarization}},
url = {{http://dx.doi.org/10.1086/690712}},
doi = {{10.1086/690712}},
volume = {{35}},
year = {{2017}},
}