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  3. Felix Montag, Tuck School of Business, Dartmouth College
Organización Industrial

Felix Montag, Tuck School of Business, Dartmouth College

Paper: Mergers, Foreign Competition, and Jobs: Evidence from the U.S. Appliance Industry

Abstract: Policy choices often entail trade-offs between workers and consumers. I assess how foreign competition changes the consumer welfare and domestic employment effects of a merger. I construct a model accounting for demand responses, endogenous product portfolios, and employment. I apply this model to the acquisition of Maytag by Whirlpool in the household appliance industry. I compare the observed acquisition to one with a foreign buyer. While a Whirlpool acquisition decreased consumer welfare by $250 million, it led to 1,300 fewer domestic jobs lost. Jobs need to be worth above $220,000 annually for domestic employment effects to offset consumer harm.

9 de Noviembre de 2023

12:15 a 13:15

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Organización Industrial


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