Search Results

Showing results 1 to 1 of approximately 1.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:low-wage labor markets 

Working Paper
On the Inefficiency of Non-Competes in Low-Wage Labor Markets

We study the efficiency of non-compete agreements (NCAs) in an equilibrium model of labor turnover. The model is consistent with empirical studies showing that NCAs reduce turnover, average wages, and wage dispersion for low-wage workers. But the model also predicts that NCAs, by reducing turnover, raise recruitment and employment. We show that optimal NCA policy: (i) is characterized by a Hosios like condition that balances the benefits of higher employment against the costs of inefficient congestion and poaching; (ii) depends critically on the minimum wage, such that enforcing NCAs can be ...
Working Paper Series , Paper 2022-01

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

E24 1 items

J62 1 items

J63 1 items

FILTER BY Keywords

PREVIOUS / NEXT