Traditional economic models view post-employment restrictions as necessary constraints stemming from the assumption that absent such contractual protections, employers would under-invest in R&D and employee training. This article enriches the analysis of human capital investment by developing a...

While post-employment restrictions may encourage firms to invest in employee skill and research and development (R&D), such restrictions may also under certain circumstances discourage employees from investing in their own human capital and work performance. The article reports the findings of...