The Impact of Restricting Labor Mobility on Corporate Investment and Entrepreneurship

• 成果类型: Article
• 署名作者: Jeffers, Jessica S.
• 署名单位: Hautes Etudes Commerciales (HEC) Paris
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad054
• 发表日期: 2023
• 页码: 1
• 关键词: NONCOMPETE AGREEMENTS; silicon valley; INNOVATION; covenants; ENFORCEABILITY; PRODUCTIVITY; COMPETITION; EFFICIENCY; creation; search

摘要

This paper examines how labor mobility restrictions like noncompete agreements affect firms' investment decisions. Using matched employee-employer data from LinkedIn, I show that increases in the enforceability of noncompete agreements lead to widespread declines in employee departures, specifically in knowledge-intensive occupations. Established firms that rely more on these knowledge-intensive occupations increase their investment rate in physical capital. However, new firm entry in corresponding sectors declines. I provide evidence for different mechanisms to explain these patterns. Together, the findings show that labor frictions play an important role in investment decisions. Authors have furnished an , which is available on the Oxford University Press Web site next to the link to the final published paper online.