The Value Of Employee Retention: Evidence From A Natural Experiment

We estimate the firm-level returns to retaining employees using difference-in-differences analysis and a natural experiment where the enforcement of employee noncompete agreements was inadvertently reversed in Michigan. We find that noncompete enforcement boosted the short-term value of publicly traded companies by approximately 9%. The effect is increasing in local competition and growth opportunities, and offset by patenting.


Published in:
Journal Of Economics & Management Strategy, 25, 3, 652-677
Year:
2016
Publisher:
Hoboken, Wiley-Blackwell
ISSN:
1058-6407
Laboratories:




 Record created 2017-01-24, last modified 2018-09-13


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