The Impact of Private Equity on Employment: The Consequences of Fund Country of Origin - New Evidence From France

This is a study of country of origin effects of Private Equity (PE) investment on employment in France applies propensity score matching methodology to establishment level survey data. We find a significant difference between the effects of investment by foreign and domestic French PE, that have become more pronounced since the onset of the financial crisis that began in 2008. The former were more likely to induce job shedding and employment flexibility. In contrast, there was not a significant difference in these areas between firms that French PE invested in, and those with no PE investment at all.