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Private equity and workers’ career paths: the role of technological change

Agrawal, Ashwini and Tambe, Prasanna (2016) Private equity and workers’ career paths: the role of technological change. The Review of Financial Studies, 29 (9). pp. 2455-2489. ISSN 0893-9454

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Identification Number: 10.1093/rfs/hhw025


We analyze a new dataset on workers’ career paths to examine whether private equity (PE) investments can have positive spillover effects on workers. We study leveraged buyouts in the context of recent information technology (IT) diffusion, and find evidence supporting the argument that many employees of companies acquired by PE investors gain transferable, IT-complementary human capital. Our estimates indicate that these workers experience increases in both long-run employability and wages relative to what they would have realized in the absence of PE investment. The findings underscore PE’s role in mitigating the effects of workforce skill obsolescence resulting from technological change.

Item Type: Article
Official URL:
Additional Information: © 2016 The Authors
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
Sets: Departments > Finance
Collections > Economists Online
Date Deposited: 16 Feb 2017 10:00
Last Modified: 21 Sep 2017 14:29

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