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A Retrospective Analysis of the Acquisition of Target’s Pharmacy Business by CVS Health: Labor Market Perspective

Year: 2026

Type: article

Abstract: We analyze the labor market impact of CVS Health’s acquisition of Target’s pharmacy business in December 2015 using Lightcast job postings data. Using differencein- differences and triple-difference designs, we find meaningful negative effects of the merger on posted pay. In our preferred specification, we estimate that the acquisition reduced posted pay in affected labor markets by 2.9%. We test for heterogeneous merger effects by occupational characteristics, finding that the merger caused pay to fall by more in lower-paid occupations than in higher-paid occupations.

Source: The Review of Economics and Statistics

DOI: 10.1162/rest.a.1739

Authors: Enas Farag, Alaa Abdelfattah, Chris Compton, Anna Stansbury, Marshall Steinbaum

Institutions: Cairo University, University of Illinois Urbana-Champaign, Occidental College, Massachusetts Institute of Technology, University of Utah

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Good health and well-being, Reduced inequalities

Open Access status: green

OpenAlex ID: W7140214105

FWCI:

Cites: 17

Cited by: 1

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