Forthcoming publication in JEMS for Prof. Kenneth Younge

Prof. Kenneth Younge © 2015 EPFL

Prof. Kenneth Younge © 2015 EPFL

Prof. Kenneth Younge has a new article forthcoming in the prestigious Journal of Economics & Management Strategy entitled "The Value of Employee Retention: Evidence From a Natural Experiment".

Abstract

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 shortterm value of publicly traded companies by approximately 9%. The effect is increasing in local competition and growth opportunities, and offset by patenting.

Reference

"The Value of Employee Retention: Evidence From a Natural Experiment", Kenneth A. Younge & Matt Marx, forthcoming in the Journal of Economics & Management Strategy