The value of employee retention: : Evidence from a natural experiment

• Autores: Kenneth A. Younge, Matt Marx
• Localización: Journal of Economics & Management Strategy, ISSN-e 1530-9134, Vol. 25, Nº. 3, 2016, págs. 652-677
• Idioma: inglés
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• Resumen

  • We 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.