The aim of this paper is to investigate the impact of takeovers on employment by using an unbalanced panel from French Surveys and administrative data available over the 1997 to 2000 period. We estimate the effect of takeovers on employment by using a dynamic demand for labour functions augmented with merger variables.
The results indicate that mergers and acquisitions have a positive impact on employment. However, the coefficients changed of sign of falled below the acceptable levels of significance if the firms belong to the same industry or if the transfert between the acquired and acquiring firms is low.
Classification JEL: J 23; L 23