TY  - RPRT
        AU  - Colussi, Tommaso
AU  - Romano, Livio
        TI  - Is There a Preferential Treatment for Locals in the Labor Market? Evidence from Takeovers
        PY  - 2016/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10418
        UR  - https://www.iza.org/publications/dp10418
        AB  - 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.
        KW  - takeovers
KW  - local social networks
KW  - social capital
KW  - firm behavior
        ER  -