Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/161041 
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers No. 10418
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This work analyzes the extent to which local social networks affect workers' labor market outcomes and firms' economic performance. By exploiting variations in firms' ownership generated by takeovers, we find that belonging to the same community of origin as the new employer significantly increases an employee's job retention probability. Finally, we show that the share of local employees retained after the takeover is negatively associated with the probability of closure of the acquiring firm.
Subjects: 
takeovers
local social networks
social capital
firm behavior
JEL: 
D22
J24
J63
J7
Document Type: 
Working Paper

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