Hiring High-Skilled Labor through Mergers and Acquisitions

TY - JOUR

T1 - Hiring High-Skilled Labor through Mergers and Acquisitions

AU - Chen, Jun

AU - Hshieh, Shenje

AU - Zhang, Feng

PY - 2024/9

Y1 - 2024/9

N2 - Using random H-1B visa lotteries as a natural experiment, we find that firms respond to shortages of high-skilled workers by acquiring firms that employ such workers. The effect is stronger among firms with high human capital and more senior workforces, firms facing tight labor markets and legal barriers to poaching workers, and firms lacking foreign affiliates. The acquihired workers are highly educated, sharing skills and occupations similar to those of the acquirer’s existing workers. Our findings suggest skilled labor is an important driver of acquisitions and acquihiring is an effective means of obtaining skilled labor. © The Author(s), 2023. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington.

AB - Using random H-1B visa lotteries as a natural experiment, we find that firms respond to shortages of high-skilled workers by acquiring firms that employ such workers. The effect is stronger among firms with high human capital and more senior workforces, firms facing tight labor markets and legal barriers to poaching workers, and firms lacking foreign affiliates. The acquihired workers are highly educated, sharing skills and occupations similar to those of the acquirer’s existing workers. Our findings suggest skilled labor is an important driver of acquisitions and acquihiring is an effective means of obtaining skilled labor. © The Author(s), 2023. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington.

UR - https://app-overton-io.ezproxy.cityu.edu.hk/articles.php?query=10.1017/S0022109023000856

U2 - 10.1017/S0022109023000856

DO - 10.1017/S0022109023000856

M3 - RGC 21 - Publication in refereed journal

SN - 0022-1090

VL - 59

SP - 2762

EP - 2798

JO - Journal of Financial and Quantitative Analysis

JF - Journal of Financial and Quantitative Analysis

IS - 6

ER -