Title
Hiring High-Skilled Labor through Mergers and Acquisitions
Publication Date
6-11-2022
Abstract
Using random H-1B visa lotteries as a natural experiment, we document that firms respond to shortages of high-skilled workers by acquiring firms that have such workers and own negligible amounts of tangible assets. Additional tests show that desire for the targets’ skilled labor is an important driver of these acquisitions. Using the near-universe of employee LinkedIn profiles and H-1B visa microdata, we also provide direct evidence that skilled workers are hired through these acquisitions. Our findings suggest skilled labor is an important driver of acquisitions and acquisitions are an effective means of hiring skilled labor.
Document Type
Article
Keywords
Acquihiring, Skilled labor, H-1B visa, Mergers and acquisitions, LinkedIn
Disciplines
Finance
DOI
10.2139/ssrn.4134426
Source
SMU Cox: Finance (Topic)
Language
English