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Employee Poaching, Predatory Hiring, and Covenants Not to Compete

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  • Kim, Jin-Hyuk

Abstract

Poaching key employees from close competitors has become a prevalent and controversial issue. This paper examines the condition under which employee poaching can be either predatory or competitive, and discusses its implications for the enforcement of post-employment non-compete agreements. When poaching sufficiently injures the entrant’s ability to compete, predatory hiring can occur in the sense that the incumbent would have been unprofitable in the absence of the entrant’s exit. Some antitrust implications are discussed.

Suggested Citation

  • Kim, Jin-Hyuk, 2007. "Employee Poaching, Predatory Hiring, and Covenants Not to Compete," MPRA Paper 83254, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:83254
    as

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    File URL: https://mpra.ub.uni-muenchen.de/83254/1/MPRA_paper_83254.pdf
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    References listed on IDEAS

    as
    1. Espen R. Moen & Åsa Rosén, 2004. "Does Poaching Distort Training?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(4), pages 1143-1162.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    employee poaching; non-compete covenants; predation;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices

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