Ownership Change, Productivity, and Human Capital

Donald S. Siegel, Kenneth L. Simons and Tomas Lindstrom

in Producer Dynamics

Published by University of Chicago Press

Published in print March 2009 | ISBN: 9780226172569
Published online February 2013 | e-ISBN: 9780226172576 | DOI:
Ownership Change, Productivity, and Human Capital

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This chapter utilizes the matched employer-employee data from the Swedish manufacturing sector to explore how corporate ownership changes affect the performance of the firm and the composition of the firm's workforce. In the downsizing of operations, it appears that plants shed workers with short job tenures and these are more likely to be younger and female workers. Plants that changed owners apparently had higher output and employment than comparable plants both before and after ownership change. Plants involved in an ownership change also became more productive after the transaction. Workers with the highest levels of education had the greatest mobility across firms. New employees in ownership change plants experienced lower earnings growth than employees being hired by other plants. It is noted that Sweden has influential unions, with a membership rate of about 70 percent.

Keywords: matched employer-employee data; Swedish manufacturing; corporate ownership changes; firms; female workers; employment; education; Sweden

Chapter.  17810 words.  Illustrated.

Subjects: Microeconomics

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