Financialization, Workforce Recontracting, and Job Quality in Leveraged Buyouts.

Although prior studies have assessed the impact of financialization on employment and wages, the labor process implications are less understood. We therefore draw on recontracting theories (agency theory and wealth transfer theory) to assess whether leveraged buyouts (LBOs) result in lower job quality for workers. Given LBOs are heterogeneous and vary by key characteristics (outside ownership, short-term- orientation, and high leverage/ debt) we also consider job quality in different types of deals. Analyzing nationally representative matched data, overall we find workers in LBOs compared to non-LBOs do not report lower job quality (work intensity/ time pressure, job discretion, and participative decision-making), or related attitudinal outcomes (individual well-being and job satisfaction). However, we find synergies of organizational control in 'perfect storm' LBOs (with outside ownership, short-term- orientation, and high leverage/ debt) where the workforce reports higher work intensity and time pressure, although they do not report lower well-being and job satisfaction. This may highlight potential foundations for consent to work intensification during the shift from managerial to financial capitalism." [ABSTRACT FROM AUTHOR]