Full Citation

Title: Low-Wage Workers and the Enforceability of Non-Compete Agreements

Citation Type: Journal Article

Publication Year: 2021

ISBN:

ISSN:

DOI: 10.2139/SSRN.3452240

NSFID:

PMCID:

PMID:

Abstract: We exploit the 2008 Oregon ban on non-compete agreements (NCAs) for hourly-paid workers to provide the first evidence on the impact of NCAs on low-wage workers. We find that banning NCAs for hourly workers increased hourly wages by 2-3% on average. Since only a subset of workers sign NCAs, scaling this estimate by the prevalence of NCA use in the hourly-paid population suggests that the effect on employees actually bound by NCAs may be as great as 14-21%, though the true effect is likely lower due to labor market spillovers onto those not bound by NCAs. While the positive wage effects are found across the age, education and wage distributions, they are stronger for female workers and in occupations where NCAs are more common. The Oregon low-wage NCA ban also improved average occupational status in Oregon, raised job-to-job mobility, and increased the proportion of salaried workers without affecting hours worked.

Url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3452240

Url: https://pubsonline.informs.org/doi/10.1287/mnsc.2020.3918

User Submitted?: No

Authors: Lipsitz, Michael; Starr, Evan

Periodical (Full): Management Science

Issue: 1

Volume: 68

Pages: 1-808

Data Collections: IPUMS USA, IPUMS CPS

Topics: Labor Force and Occupational Structure, Poverty and Welfare

Countries: