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Noncompete agreements in employment contracts

Author

Listed:
  • Kurt Lavetti

    (Ohio State University, USA, and IZA, Germany)

Abstract

Labor market institutions that may weaken workers’ bargaining leverage have received increased scrutiny in recent years. One example is noncompete agreements, which prevent workers from freely moving across employers, potentially weakening earnings growth. New data sources and empirical evidence have led policymakers to consider sharp restrictions on their use, especially among lower-income workers. These restrictions take many different forms, each of which has unique tradeoffs between the desire to protect workers while allowing firms to use noncompetes in cases where they may create social value.

Suggested Citation

  • Kurt Lavetti, 2021. "Noncompete agreements in employment contracts," IZA World of Labor, Institute of Labor Economics (IZA), pages 486-486, September.
    • Handle: RePEc:iza:izawol:journl:2021:n:486
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    References listed on IDEAS

    as
    1. Kurt Lavetti & Carol Simon & William D. White, 2020. "The Impacts of Restricting Mobility of Skilled Service Workers: Evidence from Physicians," Journal of Human Resources, University of Wisconsin Press, vol. 55(3), pages 1025-1067.
    2. Naomi Hausman & Kurt Lavetti, 2021. "Physician Practice Organization and Negotiated Prices: Evidence from State Law Changes," American Economic Journal: Applied Economics, American Economic Association, vol. 13(2), pages 258-296, April.
    3. Evan P. Starr & J.J. Prescott & Norman D. Bishara, 2021. "Noncompete Agreements in the US Labor Force," Journal of Law and Economics, University of Chicago Press, vol. 64(1), pages 53-84.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Oz Shy & Rune Stenbacka, 2023. "Noncompete agreements, training, and wage competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 32(2), pages 328-347, April.

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    More about this item

    Keywords

    noncompete agreements; employment law; wages; job mobility;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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