Beyond Non-Compete Agreements
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Abstract
Recent research in the USA, and more recently in Italy, has focused on the abuse of noncompete agreements in employment contracts. This empirical evidence has led to new policy initiatives in the USA, at both state and federal level. However, non-compete agreements are not the only tool used by firms, and there are further contractual clauses – such as nondisclosure, non-solicitation of clients/business, non-recruitment, and repayment of training agreements – that firms might use either as a less restrictive tool than non-compete agreements or to further reduce labour mobility and the employment opportunities of their employees. This article provides the first empirical insights on how firms use these further clauses in Italy: we raise the suspect that, in a non-trivial number of cases, their scope is too broad, and therefore they would deserve more attention.
Keywords
- monopsony
- competition
- labour market frictions
- contractual clauses