Labor Noncompete Agreements: Tool for Economic Efficiency or Means to Extract Value from Workers?

2021 ◽  
pp. 0003603X2110454
Author(s):  
David J. Balan

A number of theoretical arguments have been offered in favor of noncompete provisions in labor agreements. While there has been considerable empirical research on the effects of those provisions, there has been little direct evaluation of the arguments themselves. In this article, I lay out and evaluate three commonly heard arguments, namely, (1) the voluntary nature of labor agreements justifies a strong inference that the terms of those agreements, including noncompete provisions, are beneficial for both workers and firms and that they are economically efficient, 2( A) noncompetes facilitate efficient knowledge transfer from firms to workers, and 2( B) noncompetes encourage efficient firm-sponsored investment in worker training. These arguments, though not entirely without merit, mostly do not survive close scrutiny, and in fact such scrutiny reveals strong arguments that point in the opposite direction. In addition, noncompetes may cause important additional harms that are not measured in conventional economic research.

2019 ◽  
Vol 67 (1) ◽  
pp. 67-79 ◽  
Author(s):  
Katarzyna Haverkamp

Zusammenfassung In der empirischen Wirtschaftsforschung zeigt sich ein zunehmendes Interesse an der Untersuchung der Fragen der Gründungsdynamik und des Gründungserfolgs im Kontext der deutschen Handwerkswirtschaft. Eine besondere Herausforderung für diese Analysen besteht jedoch darin, dass eine statistische Abgrenzung des juristisch definierten Handwerkssektors in den vorliegenden Sekundärdatensätzen meist nur mit Einschränkungen möglich ist. Vor diesem Hintergrund analysiert dieser Beitrag Möglichkeiten und Grenzen einer statistischen Abgrenzung des Handwerks in Mikrodatensätzen und untersucht unterschiedliche, bislang verwendete Identifikationsverfahren im Hinblick auf die Repräsentativität der jeweils gewonnen Stichproben. Im Ergebnis zeigt der Beitrag die Stärken und Schwächen unterschiedlicher Identifikationsverfahren und formuliert Empfehlungen hinsichtlich ihrer Verwendung in der Entrepreneurship-Forschung. Abstract Recently, several empirical studies investigate the causal effects of regulation on market entry and exit using the example of the German crafts sector. However, since the definition of the sector is made on legal- and not statistical basis, the identification of crafts companies and employees in microdata records is an intricate process. This paper examines different identification strategies that have been used so far in empirical research and investigates whether the resulting samples are consistent with the overall population in question. The paper contributes to existing economic research by providing an understanding for the potential pitfalls when analyzing sub-groups in larger datasets and by formulating an explicit recommendation for the case of the research on regulation and entry in the German crafts sector.


2020 ◽  
Vol 52 (4) ◽  
pp. 621-652
Author(s):  
Jeff Biddle

The CES production function was introduced to economics in the 1961 paper “Capital-Labor Substitution and Economic Efficiency,” by Kenneth Arrow, Hollis Chenery, Bagicha Minhas, and Robert Solow. The paper had an immediate and substantial impact on economic research, and the CES production function remains an important tool for both theoretical and empirical researchers. I review how the CES production function was derived and used in the paper, and, relying on archival sources, present a fine-grained account of the collaborative process that produced the paper. I also discuss the CES production function as an example of multiple simultaneous discovery and suggest reasons for its broad and rapid diffusion.


2011 ◽  
pp. 1536-1547
Author(s):  
Parissa Haghirian

A growing interest in the various aspects of knowledge transfer within multinational corporations has been evidenced by a recent surge in empirical research. Despite the fact that the number of empirical studies investigating various aspects of knowledge transfer within multinational corporations has significantly increased, very few insights into the influence of culture on knowledge transfer, however, have come to light. In fact, the cultural aspects and the individuals involved in the transfer and communication of corporate knowledge within multinational corporations seemed to have been overlooked by researchers. This chapter attempts to fill this gap and investigates the impact culture has upon knowledge transfer processes within multinational corporations. It presents a comprehensive intercultural knowledge transfer model and identifies which aspects of national culture hinder and which aspects foster an effective transfer of knowledge.


Author(s):  
Parissa Haghirian

A growing interest in the various aspects of knowledge transfer within multinational corporations has been evidenced by a recent surge in empirical research. Despite the fact that the number of empirical studies investigating various aspects of knowledge transfer within multinational corporations has significantly increased, very few insights into the influence of culture on knowledge transfer, however, have come to light. In fact, the cultural aspects and the individuals involved in the transfer and communication of corporate knowledge within multinational corporations seemed to have been overlooked by researchers. This chapter attempts to fill this gap and investigates the impact culture has upon knowledge transfer processes within multinational corporations. It presents a comprehensive intercultural knowledge transfer model and identifies which aspects of national culture hinder and which aspects foster an effective transfer of knowledge.


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