Quotation Gugler, Klaus, Clougherty, Joe . 2010. Can mergers lead to lower wages?. EARIE 2010, Istanbul, Türkei, 02.09.-04.09.




The predictions from our theoretical model are that following a merger (i) spillovers as such will typically lead to higher wages and (ii) the trade union's response is to set lower wages if the merger is international and not change (or increase) wages if the merger is domestic. We use data for 2‐digit industries in the US 1986‐2001 to test our predictions. When we control for the spillover effect, we find that international mergers have a significant and negative effect on wages and that domestic mergers have an insignificant (but positive) effect on wages. International mergers are more likely to have an overall negative impact on domestic wages a) the more unionized the industry and b) if there is an outward rather than an inward international merger.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Can mergers lead to lower wages?
Event EARIE 2010
Year 2010
Date 02.09.-04.09.
Country Turkey
Location Istanbul
URL http://www.earie2010.org/


Gugler, Klaus (Details)
Clougherty, Joe (University of Illinois at Urbana-Champaign, and CEPR-L)
Research Institute for Regulatory Economics FI (Details)
Department of Economics (Gugler) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5370 Industrial economics (Details)
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