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

Share

COinS