Businessglobal-economy
Noncompetes suppress worker mobility and earnings
A recent study published in The Quarterly Journal of Economics reveals that noncompete agreements significantly hinder worker mobility and suppress earnings. The research provides robust evidence that these contracts fail to offer measurable benefits in protecting trade secrets. These findings challenge the widespread use of restrictive covenants in employment contracts. By analyzing labor market data, the authors demonstrate that such agreements primarily serve to limit professional growth rather than safeguard proprietary business information.