Mergers and Acquisitions, Technological Change and Inequality

Mergers and Acquisitions, Technological Change and Inequality

Wenting Ma, Paige Ouimet, Elena Simintzi

Series number :

Serial Number: 
485/2016

Date posted :

March 12 2018

Last revised :

November 06 2018
SSRN Share

Keywords

  • Mergers • 
  • technological change • 
  • inequality

We document shifts in occupational composition following mergers and acquisitions (M&As) along with increases in average wages and wage inequality. We propose M&As act as a catalyst for technological change.

Due to an increase in scale, improved efficiency and lower financial constraints, M&As facilitate technology adoption, disproportionately increasing the productivity of high-skill workers and enabling the displacement of mid-income routine occupations. We document these findings in M&A impacted establishments as compared to a matched sample of control establishments. These results generalize within industries, suggesting M&A activity is an important driver of economy-wide trends in job polarization and income inequality.

Authors

Ms.
Real name:
Wenting Ma
University of North Carolina at Chapel Hill
Professor
Real name:
Paige Ouimet
University of North Carolina at Chapel Hill
Real name:
Elena Simintzi
UBC Sauder