The impact of mergers and acquisitions on company employment in the United Kingdom

This paper provides a systematic empirical analysis of the effects of take-over and merger activity on firm employment in the United Kingdom using a specially constructed database for the period 1967-1996. Our results indicate that significant rationalisations in the use of labour occur as firms reduce joint output and increase efficiency postmerger. These effects are particularly pronounced in the case of related and especially hostile mergers. JEL classification: J23; L23 Keywords: Mergers; Acquisitions; Panel data; Labour demand