Mobility, Skills, and the Michigan Non-Compete Experiment
AbstractWhereas a number of studies have considered the implications of employee mobility, comparatively little research has considered institutional factors governing the ability of employees to move from one firm to another. This paper explores a legal constraint on mobility--employee non-compete agreements--by exploiting Michigan's apparently inadvertent 1985 reversal of its non-compete enforcement policy as a natural experiment. Using a differences-in-differences approach, and controlling for changes in the auto industry central to Michigan's economy, we find that the enforcement of non-competes indeed attenuates mobility. Moreover, non-compete enforcement decreases mobility more sharply for inventors with firm-specific skills and for those who specialize in narrow technical fields. The results speak to the literature on employee mobility while offering a credibly exogenous source of variation that can extend previous research on the implications of such mobility.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 55 (2009)
Issue (Month): 6 (June)
labor; statistics; design of experiments; organizational studies; personnel; strategy; research and development; innovation;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Peter Thompson & Jing Chen, 2011.
"Disagreements, employee spinoffs and the choice of technology,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 14(3), pages 455-474, July.
- Jing Chen & Peter Thompson, 2010. "Code files for "Disagreements, Employee Spinoffs and the Choice of Technology"," Computer Codes 09-182, Review of Economic Dynamics.
- Rost, Katja, 2011. "The strength of strong ties in the creation of innovation," Research Policy, Elsevier, vol. 40(4), pages 588-604, May.
- Stefan Wagner & Karin Hoisl & Grid Thoma, 2013. "Overcoming localization of knowledge: The role of professional service firms," ESMT Research Working Papers ESMT-13-09, ESMT European School of Management and Technology.
- Guido Bünstorf & Christoph Engel & Sven Fischer & Werner Güth, 2013.
"Win Shift Lose Stay - An Experimental Test of Non-Compete Clauses,"
Working Paper Series of the Max Planck Institute for Research on Collective Goods
2013_17, Max Planck Institute for Research on Collective Goods.
- Guido Bünstorf & Christoph Engel & Sven Fischer & Werner Güth, 2013. "Win Shift Lose Stay - An Experimental Test of Non-Compete Clauses," Jena Economic Research Papers 2013-038, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Stefano Breschi & Francesco Lissoni & Gianluca Tarasconi, 2014. "Inventor Data for Research on Migration and Innovation: A Survey and a Pilot," WIPO Economic Research Working Papers 17, World Intellectual Property Organization - Economics and Statistics Division.
- Haeussler, Carolin & Sauermann, Henry, 2013. "Credit where credit is due? The impact of project contributions and social factors on authorship and inventorship," Research Policy, Elsevier, vol. 42(3), pages 688-703.
- Michele PEZZONI (University of Milano-Bicocca - KiTES-Università Bocconi - Observatoire des Sciences et des Techniques) & Francesco LISSONI (GREThA, CNRS, UMR 5113 - KiTES) & Gianluca TARASCONI (KiTE, 2012. "How To Kill Inventors: Testing The Massacrator© Algorithm For Inventor Disambiguation," Cahiers du GREThA 2012-29, Groupe de Recherche en Economie Théorique et Appliquée.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.