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

Enas Farag et al.

The Review of Economics and Statistics2026https://doi.org/10.1162/rest.a.1739article
AJG 4ABDC A*
Weight
0.50

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.

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https://doi.org/https://doi.org/10.1162/rest.a.1739

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@article{enas2026,
  title        = {{A Retrospective Analysis of the Acquisition of Target’s Pharmacy Business by CVS Health: Labor Market Perspective}},
  author       = {Enas Farag et al.},
  journal      = {The Review of Economics and Statistics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1162/rest.a.1739},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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