TY - JOUR
T1 - The effect of mergers on employment and wages
T2 - Evidence from Japan
AU - Kubo, Katsuyuki
AU - Saito, Takuji
N1 - Funding Information:
The authors would like to thank the editor of the Journal, Takeo Hoshi, two anonymous referees, Daiji Kawaguchi, Hideaki Miyajima, Hiroshi Osano, Masatoshi Kato for their helpful comments and suggestions on an earlier version of this paper. Useful discussion by seminar participants at the Kansai Labor Economics Workshop, Trans-Pacific Labor Seminar, Business Economics Workshop, Corporate Governance seminar at RIETI (Research Institute of Economy, Trade and Industry), Seminar at Waseda University and conference attendees at the Japanese Economic Association Annual Meeting is also gratefully acknowledged. Authors acknowledge the financial support of a Grant-in-Aid for Scientific Research (19530292, Katsuyuki Kubo, 19830093, Takuji Saito) from the Japanese Ministry of Education, Science, Sports and Culture, and Waseda University Grant for Special Research Projects (Project number: 2009A-502, Katsuyuki Kubo).
PY - 2012/6
Y1 - 2012/6
N2 - This study investigates the impact of mergers on employment and employees' wages in Japan, based on 111 mergers between listed firms observed between 1990 and 2003. Typically, the number of employees decreases by 4.45% three years after a merger, even after changes in sales and other variables are controlled. Firms that experience related mergers, and rescue mergers are more likely to decrease the number of workers. At the same time, wages increase by 5.46% per employee. These results suggest that the main motivation behind mergers is not to divest employees of their wealth.
AB - This study investigates the impact of mergers on employment and employees' wages in Japan, based on 111 mergers between listed firms observed between 1990 and 2003. Typically, the number of employees decreases by 4.45% three years after a merger, even after changes in sales and other variables are controlled. Firms that experience related mergers, and rescue mergers are more likely to decrease the number of workers. At the same time, wages increase by 5.46% per employee. These results suggest that the main motivation behind mergers is not to divest employees of their wealth.
KW - Employment adjustment
KW - Japan
KW - Merger
KW - Wage
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U2 - 10.1016/j.jjie.2011.04.001
DO - 10.1016/j.jjie.2011.04.001
M3 - Article
AN - SCOPUS:84861764248
SN - 0889-1583
VL - 26
SP - 263
EP - 284
JO - Journal of the Japanese and International Economies
JF - Journal of the Japanese and International Economies
IS - 2
ER -