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No-Poach Agreements

Author

Listed:
  • Axel Gottfries
  • Gregor Jarosch

Abstract

We study no-poach cartels using a wage-posting model that puts worker poaching at the center of labor market competition. Even when just two out of ten employers in a local labor market collude, wages fall by almost 5% market-wide. The reason is that no-poach agreements suppress competition along the job ladder, with spillovers to non-colluding firms. We then compare no-poach agreements to two other forms of anti-competitive conduct in the labor market: noncompete agreements and wage fixing. No-poach agreements have by far the largest negative wage effects.

Suggested Citation

  • Axel Gottfries & Gregor Jarosch, 2026. "No-Poach Agreements," NBER Working Papers 35492, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35492
    Note: EFG LS
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    More about this item

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • J0 - Labor and Demographic Economics - - General

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