“This column uses data on thousands of buyouts in the US to examine the effects on employment, job reallocation, productivity, and worker compensation.”
They find some interesting results. As usual it all depends on the cycle.
“… an overarching result: Buyout effects differ greatly by type of buyout, with credit conditions at the time of buyout, and with the post-buyout evolution of credit conditions and the macroeconomy.“
They find for example that net employment fell 4.4% after buyouts, yet for private-to-private buyouts it actually rose 13% and for large public buyouts it fell 16%.
