How noncompetes help existing businesses (and limit new ones)

Aug 16, 2018

Sections Public Policy Video

Many workers in a broad spectrum of fields have encountered noncompete agreements—wherein they agree not to work for a competing company within a specified period of time after leaving their current employer—in the course of their career paths. Chicago Booth's Jessica S. Jeffers finds that stronger enforcement of such agreements not only lowers employee turnover, it also creates an economic tradeoff: greater capital investment among existing businesses, but fewer new businesses entering the market.