Younge, Kenneth A.Marx, Matt2017-01-242017-01-242017-01-242015-12-1710.1111/jems.12154https://infoscience.epfl.ch/handle/20.500.14299/133814WOS:000387407300006We 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.text::journal::journal article::research article