Data and Code for: Noncompetes and Firm Heterogeneity

Principal Investigator(s):  View help for Principal Investigator(s) Axel Gottfries, University of Edinburgh; Gregor Jarosch, Duke University

Version:  View help for Version V1

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Project Citation: 

Gottfries, Axel, and Jarosch, Gregor. Data and Code for: Noncompetes and Firm Heterogeneity. Nashville, TN: American Economic Association [publisher], 2026. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2026-04-08. https://doi.org/10.3886/E245280V1

Project Description

Summary:  View help for Summary
Noncompetes often cover highly trained, high-paid workers but are also widespread in low-skill, low-pay service jobs. This paper asks where they hurt workers more. Using a dynamic monopsony job-ladder framework, we show that noncompetes depress wages by reducing competition, with potentially severe effects when adoption is widespread. The impact on wages is particularly adverse when they are used by firms with high productivity and high costs of training workers, as these are the firms with large rents. In contrast, the effects are more muted when low rent employers use noncompetes.
Funding Sources:  View help for Funding Sources European Research Council grant (101220912)

Scope of Project

Subject Terms:  View help for Subject Terms computer simulation
JEL Classification:  View help for JEL Classification
      J31 Wage Level and Structure; Wage Differentials
      J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
      J42 Monopsony; Segmented Labor Markets
      J64 Unemployment: Models, Duration, Incidence, and Job Search


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V1 [2026-04-08]

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