Jiaxin Wu

I am a Ph.D. candidate at the Department of Finance, Stockholm School of Economics. My research interests lie in Empirical Corporate Finance, Sustainable Finance, and Private Equity. In particular, I am working with Swedish registered data on the full population to provide policy implications on how local mergers have impact on the worker wage outcomes. 

I am on the academic job market and will be available for interviews at the European Job Market for Economists and the AFA/ASSA virtual conferences. 

Job market paper: How do local mergers affect worker wage outcomes?

Abstract:Utilizing the national Swedish administrative employer-employee matched data, this study delves into the direct impact of mergers on workers and the indirect monopsony effect of local mergers on individuals within the same local labor market. Employing a matched difference-in-differences design reveals a decrease of approximately 3% in earnings growth for workers in the M&A firms. This wage gap is posited to stem from workers navigating a more concentrated local labor market post-merger. Furthermore, the analysis indicates that M&A workers employed in branches within the same geo- graphic area as those of the acquiring firm experience even lower wage growth compared to their counterparts in other branches of the same firm. The study documents a concurrent monopsony effect of a 3% drop on wage growth for individuals within the same local labor market. Particularly significant is the accentuated impact of the monopsony effect in highly concentrated labor markets, among roles closely linked to specific industries, and among workers engaged in abstract tasks. These findings strongly imply that M&A activities elevate local labor market concentration, exerting downward pressure on wages, thereby underscoring the influential role of local-level labor market monopsonies on wage growth.