NON-COMPETE CLAUSES, JOB MOBILITY AND WAGES IN AUSTRALIA The economics

As a result, a portion of the results that we attribute to the presence of NCCs may reflect the effect of non-solicitation clauses, but we do not test this directly.2 Figure 1: The overlap between workers subject to NDAs and NCCs Box 2: The empirical challenge: selection bias in the comparison of NCC-using firms and workers to others To identify the consequences of NCCs use we have to separate the. [...] For our headline results, we believe that the difference in job mobility between the peak of worker turnover in 2021 and 2023 provides the best possible view of the consequences of increasing use of NCCs. [...] The NDA and NCC variable capture how worker’s wages differ at firms that use NDAs and NCCs for 76- 100% of their workforce, relative to firms that do not use NCCs and use NDAs for 76-100% of their workforce. [...] The one result that is robust to this change in control groups is our estimate of the effect of increased NCC use on the probability that workers switch to a firm within the same industry subdivision (J2J within sub-division). [...] The NDA and NCC variable capture how worker’s wages differ at firms that use NDAs and NCCs for 76-100% of their workforce (except in model (1)), relative to firms that do not use NCCs and use NDAs for 76-100% of their workforce.