The Spillover Effect of Bank Merger and Acquisition on Local Labor Market

The paper investigates the impact of merger and acquisition (M&A) on local labor market. We find a positive spillover effect of bank merger events on local bank wage. The positive effect increases for in-market or high synergy mergers, and strengthens when a local market is competitive, dominated by either bidding firms, large, national local peers or in urban area. The result is robust to controlling for the endogeneity of the bank merger events and the effect of local economic conditions.