The effect of mergers on employment and wages: Evidence from Japan

Katsuyuki Kubo, Takuji Saito

Research output: Contribution to journalArticlepeer-review

17 Citations (Scopus)


This study investigates the impact of mergers on employment and employees' wages in Japan, based on 111 mergers between listed firms observed between 1990 and 2003. Typically, the number of employees decreases by 4.45% three years after a merger, even after changes in sales and other variables are controlled. Firms that experience related mergers, and rescue mergers are more likely to decrease the number of workers. At the same time, wages increase by 5.46% per employee. These results suggest that the main motivation behind mergers is not to divest employees of their wealth.

Original languageEnglish
Pages (from-to)263-284
Number of pages22
JournalJournal of The Japanese and International Economies
Issue number2
Publication statusPublished - 2012 Jun
Externally publishedYes


  • Employment adjustment
  • Japan
  • Merger
  • Wage

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations


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