Hiring High-Skilled Labor through Mergers and Acquisitions

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

1 Scopus Citations
View graph of relations


Related Research Unit(s)


Original languageEnglish
Journal / PublicationJournal of Financial and Quantitative Analysis
Online published19 Jul 2023
Publication statusOnline published - 19 Jul 2023


Using random H-1B visa lotteries as a natural experiment, we find that firms respond to shortages of high-skilled workers by acquiring firms that employ such workers. The effect is stronger among firms with high human capital and more senior workforces, firms facing tight labor markets and legal barriers to poaching workers, and firms lacking foreign affiliates. The acquihired workers are highly educated, sharing skills and occupations similar to those of the acquirer’s existing workers. Our findings suggest skilled labor is an important driver of acquisitions and acquihiring is an effective means of obtaining skilled labor. © The Author(s), 2023. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington.