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Mergers and acquisitions (M&As) are an important mechanism through which new technology is adopted by firms. We document patterns of labor reallocation and wage changes following M&As, consistent with the adoption of technology.
Specifically, we show target establishments invest more in technology, become less routine task intensive, employ a greater share of high technology workers, and pay more unequal wages. We document evidence for three non-mutually exclusive mechanisms underlying this effect: differences in the ability to integrate technology efficiently; agency conflicts; and, occupational scale. Moreover, the within-establishment patterns generalize to the industry-level, confirming the external validity of our findings.
This paper is a chapter of a forthcoming monograph, Regulating the Crypto-economy, to be published by Hart Publishing in the latter half of 2021. The book...
How will artificial intelligence (AI) and associated digital technologies reshape the work of lawyers and structure of law firms? Legal services are...