Journal article
The Impact of Noncompetes on Wages and Job Tenure: New Evidence from NLSY Data
AEA papers and proceedings, v 116(1), pp 273-277
01 May 2026
Featured in Collection : Drexel's Newest Publications
Abstract
Noncompete agreements (NCAs) are pervasive even in low-wage labor markets, yet most evidence relies on variation in enforceability rather than NCA incidence. Using longitudinal data from the NLSY97, we study how signing an NCA affects wage trajectories and job tenure. Exploiting complete work histories and applying a "clean controls" local projections difference-in-differences design, we find a striking divergence: NCAs are associated with significantly slower wage growth for low-education workers over four years but faster wage growth for high-education workers. Effects on job tenure are imprecisely estimated for both groups.
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Details
- Title
- The Impact of Noncompetes on Wages and Job Tenure: New Evidence from NLSY Data
- Creators
- Tristan Potter - Drexel UniversityAndre Kurmann - Drexel UniversityBart Hobijn - Federal Reserve Bank of Chicago
- Publication Details
- AEA papers and proceedings, v 116(1), pp 273-277
- Publisher
- American Economic Association
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Other Identifier
- 991022180468604721