Top Job Markets Show Noncompetes May Not Squash Growth

By Leiza Dolghih (March 9, 2020, 5:44 PM EDT) -- In 2016, the White House issued a report concluding that noncompete agreements suppressed wages and deterred employee mobility, and calling the states to limit the use of such agreements around the country. However, The Wall Street Journal's recently published list of hot job markets, which mostly contains cities located in the jurisdictions where noncompetes are frequently enforced, throws into doubt the arguments that such contracts negatively affect wage growth and job mobility.

For example, Austin, Texas, which was ranked as the hottest job market for the second year in a row by The Wall Street Journal, is in the middle of the...

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