Preprint
The Impact of Non-Competes on Wages and Job Tenure: New Evidence from NLSY Data
SSRN Electronic Journal
2026
Abstract
Non-compete 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-indifference design, we find a striking divergence: NCAs are associated with significantly slower wage growth for loweducation 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 Non-Competes on Wages and Job Tenure: New Evidence from NLSY Data
- Creators
- Bart HobijnTristan PotterAndré Kurmann
- Publication Details
- SSRN Electronic Journal
- Resource Type
- Preprint
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Other Identifier
- 991022171689704721