Title

Merger Activity and Unemployment in the USA

Document Type

Article

Publication Date

9-15-2003

Department

Management and International Business

Abstract

This article presents estimates of the effect of merger activity on the unemployment rate in the US economy using time-series data from 1895 to 1992. Utilizing the methodology suggested by Wickens and Breusch (Economic Journal, Supplement, 189-205, 1988), both the short-run and long-run impacts are estimated. The estimated results suggest that merger activity had a significant negative effect on the unemployment rate in the long run. Even in the short run, merger activity, at the margin, has helped to reduce the unemployment rate.

Publication Title

Applied Economics Letters

Volume

10

Issue

11

First Page

705

Last Page

707