6 Comments

The solution is clearly for the FTC to only institute a noncompete ban on New Jersey, and then run a diff-in-diff comparing it with PA around their border.

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Great read, I always appreciate how clearly you communicate uncertainty. What do you think about other contractual arrangements like end of year, performance or retention bonuses? To me they seem like reasonably substitutes to encourage mutual investment by the employer/employee. Intuitively, I also find their reliance on prices more elegant than restrictive covenants like noncompetes.

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If the US did a national ban on noncompete it would still be possible for legislators to create specific circumstances where they were allowed in the future. The ban wouldn't have to be 100% the final word. Obviously the military will get some kind of an exemption right of the bat.

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