Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1230: Are Foreign Private Equity Buyouts Bad for Workers?

Martin Olsson () and Joacim Tåg ()
Additional contact information
Martin Olsson: Research Institute of Industrial Economics (IFN), Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Joacim Tåg: Research Institute of Industrial Economics (IFN), Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden

Abstract: The media often cast foreign private equity firms as villains who gamble with local jobs. We use detailed registry data from Sweden to show that foreign buyouts have not affected workers' labor market outcomes. But domestic buyouts have. They have increased unemployment incidence by a fifth, duration by a third, and lowered labor income by seven percent.

Keywords: Buyouts; Cross-border; Employment; Foreign; LBOs; Private Equity; Workers

JEL-codes: G24; J20

9 pages, September 13, 2018

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