skip to main content


Title: Non‐competes, business dynamism, and concentration: Evidence from a Florida case study
Abstract

Most research on non‐competes has focused on employees; here we study how non‐competes affect firm location choice, growth, and consequent regional concentration, using Florida's 1996 legislative change that eased restrictions on their enforcement. Difference‐in‐differences models show that following the change, establishments of large firms were more likely to enter Florida; they also created a greater proportion of jobs and increased their share of employment in the state. Entrepreneurs or establishments of small firms, in contrast, were less likely to enter Florida following the law change; they also created a smaller proportion of new jobs and decreased their share of employment. Consistent with these location and job creation dynamics, regional business concentration increased following the law change in Florida. Nationwide cross‐sections demonstrate consistent correlations between state‐level non‐compete enforcement and the location, employment, and concentration dynamics illustrated in Florida.

 
more » « less
Award ID(s):
1735650
NSF-PAR ID:
10147029
Author(s) / Creator(s):
 ;  
Publisher / Repository:
Wiley-Blackwell
Date Published:
Journal Name:
Journal of Economics & Management Strategy
Volume:
29
Issue:
3
ISSN:
1058-6407
Page Range / eLocation ID:
p. 663-685
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
More Like this
  1. Public attention to law enforcement officers’ violent interactions with people who are minorized due to their racial, ethnic, and gender identities has grown in recent years, policing has come under increased scrutiny and critique in the United States. Existing scholarship on law enforcement underscores how policing is a key feature of governmentality and upholds power inequalities based on race, sex, gender, sexual orientation, immigration status, and other social constructions of difference. Scant scholarship, however, examines experiences of lesbian, gay, bisexual, transgender, and queer-identifying (LGBTQ+) law enforcement officers, who are simultaneously agents of the state and also subjected to governing regimes that perpetuate social exclusions based on their identities. While research on LGBTQ+ officers has examined community perceptions of officers, workplace inclusivity, and masculinized employment settings, it has largely ignored the complexities and ambivalent sentiments of LGBTQ+ officers who are complicit with governing objectives but also disenfranchised due to their identities. In this paper, we report findings from participant observation with an LGBTQ+ law enforcement organization and semi-structured interviews with Lesbian and Gay law enforcement officers (n=7) who were recruited as part of a larger study focused on activism following the 2016 Pulse Shooting in Orlando, Florida. Findings underscore Lesbian and Gay officers’ tensions between embracing professional loyalty and experiences of trauma and exclusion due to their identities. Moreover, interviewees underscore the complex political and economic factors that reinforce their loyalty, including proximity to neoliberal economic ideals such as attractive wages and perceived prestige. Overall, we argue that Lesbian and Gay officers’ loyalty to policing obfuscates larger neoliberal economic failings and reinforces social and political differences. 
    more » « less
  2. null (Ed.)
    This essay describes and evaluates state and local business tax incentives in the United States. In 2014, states spent between $5 and $216 per capita on incentives for firms in the form of firm-specific subsidies and general tax credits, which mostly target investment, job creation, and research and development. States with higher per capita incentives tend to have higher state corporate tax rates. Recipients of firm-specific incentives are usually large establishments in manufacturing, technology, and high-skilled service industries, and the average discretionary subsidy is $178M for 1,500 promised jobs. Firms tend to accept subsidy deals from places that are richer, larger, and more urban than the average county, and poor places provide larger incentives and spend more per job. Comparing winning and runner-up locations for each deal, we find that average employment within the three-digit industry of the deal increases by roughly 1,500 jobs. While we find some evidence of direct employment gains from attracting a firm, we do not find strong evidence that firm-specific tax incentives increase broader economic growth at the state and local level. 
    more » « less
  3. Over the past two decades, the U.S. federal government has sought to increase its capacity to find, apprehend, and deport noncitizens residing in the United States who have violated federal immigration laws. One way the federal government has done this is by partnering with state and local law enforcement agencies on immigration enforcement efforts. The present study analyzes the records of all 1,964,756 interior removals between fiscal years 2003 and 2015 to examine how, if at all, the types of criminal convictions leading to removal from the U.S. interior have changed during this period of heightened coordination between law enforcement agencies and whether there are differences by gender and region of origin in the types of convictions leading to removal. Findings show that as coordination between law enforcement agencies intensified, the proportion of individuals removed from the U.S. interior with either no criminal convictions or with a driving-related conviction as their most serious conviction increased. Findings also show that the proportion of individuals removed with no criminal convictions was greater for women than for men and that the share of individuals removed with a driving-related conviction as their most serious conviction was greater for Latin Americans than for individuals from all other regions. Given renewed investment in these types of law enforcement partnerships under the Trump administration, the patterns presented in this article may foreshadow trends to come. 
    more » « less
  4. We develop, estimate, and test a tractable general equilibrium model of oligopsony with differentiated jobs and concentrated labor markets. We estimate key model parameters by matching new evidence on the relationship between firms’ local labor market share and their employment and wage responses to state corporate tax changes. The model quantitatively replicates quasi-experimental evidence on imperfect productivity-wage pass-through and strategic wage setting of dominant employers. Relative to the efficient allocation, welfare losses from labor market power are 7.6 percent, while output is 20.9 percent lower. Lastly, declining local concentration added 4 percentage points to labor’s share of income between 1977 and 2013. (JEL E25, H71, J24, J31, J42, R23) 
    more » « less
  5. A subset of manufacturing, the advanced manufacturing (AM) sector is defined using two criteria:high levels of spending for research and development (R&D) and a high share of STEM jobs within companies. In northwestFlorida, AM employment is concentrated in two sub-sectors (3259-Other Chemicals and 3344-Semiconductor) and in 2015, constituted 24.6% of theregion’s total employment [1, 2]. Guided by the overarching research question (RQ) “To what extent do curriculum content, employer needs, and student experiences align within an advanced manufacturing educational pathway,” this study’s goals are to 1) investigate the role AM program pathways have in meeting the needs of employers and new professionals who are employed in the region; 2) expand the research base and curriculum content recommendations for entrepreneur and intrapreneur education; 3) build regional capacity for AM program assessment and improvement by replicating, refining, and disseminating study approaches through further research, annual meetings with the AM employer and education community, and an academy which lead state college and university researchers, in collaboration with educational organization, to empower ruralNW Florida colleges. 
    more » « less