Do contracts influence behavior independent of the law governing their enforceability? We explore this question in the context of employment noncompetes, using nationally representative data for 11,500 labor force participants. We show that noncompetes are associated with reductions in employee...

This brief, written for the "Unrigging the Labor Market" convening on June 13, 2018 at Harvard Law School, summarizes the empirical research on the relationship between covenants not to compete, their enforceability, and wages

We study the relationship between the enforceability of covenants not to compete (CNCs) and employee mobility and wages. We exploit a 2015 CNC ban for technology workers in Hawaii and find that this ban increased mobility by 11% and new-hire wages by 4%. We supplement the Hawaii evaluation with...

Using nationally representative survey data on 11,505 labor force participants in 2014, we examine the use, implementation, and labor market outcomes associated with noncompete agreements. Nearly 1 in 5 labor force participants are bound by noncompetes, and nearly 40% have agreed to at least one...