Antitrust and labor

First Evidence on the Use of Training Repayment Agreements in the US Labor Force

Similar to noncompete clauses in employment contracts, training repayment agreements, which require employees to pay back their employers for firm-sponsored training if they quit early, can impede worker mobility and reduce competition in labor markets. The authors document the pervasiveness and characteristics of these provisions and suggest directions for future research.

The FTC’s Proposed Ban on Noncompetes Could Raise Wages by Four Percent

Nearly one in five American workers are affected by noncompete agreements, which prevent workers from working for or creating a rival firm. In new research, Axel Gottfries and Gregor Jarosch estimate that the Federal Trade Commission’s proposed noncompete ban could raise wages by 4%.

Do Corporate Mergers and Acquisitions Hurt Workers?

Competition authorities and analysts are increasingly focused on the impact of mergers and acquisitions on worker welfare. Using a novel dataset on Canadian firms and workers, David Arnold, Kevin Milligan, Terry S. Moon and Amirhossein Tavakoli test the empirical validity of several theories on how M&A may help or harm workers.

The Purchase of Unionized Labor Is a Relevant Buyer-Side Market in the Kroger-Albertsons Merger

Critics of the Federal Trade Commission’s lawsuit last week to block the Kroger-Albertsons merger claim that the agency incorrectly limits the relevant buyer-side market to unionized grocery workers. Steve C. Salop argues that the critics are wrong, and that standard antitrust analysis shows the FTC has it right.

History Provides Inspiration for a Stronger Alliance Between Labor and Antimonopoly Advocates

Although the antimonopoly neo-Brandeisians and the labor movement share many goals, including a desire to reduce the power of big business, significant tensions exist, such as labor’s past support for mergers when they advance the ability of workers to unionize. Kate Andrias traces the history of labor’s relation with antitrust to show that, despite historical and contemporary tensions, there have also been deep connections between the two movements that show how they can better complement each other in the future.

Confidentiality Agreements Can Act Like Noncompetes

Noncompete agreements, which impose contractual limits on an employee’s ability to work after leaving a job, are regulated or banned in all states. But employers can potentially get around legal limitations on noncompetes by asking workers to sign confidentiality agreements that have similar functional effects. In a new article, Camilla A. Hrdy and Christopher B. Seaman provide empirical evidence that a significant number of employment agreements contain broad confidentiality provisions that place noncompete-like restrictions on workers.

Firms Sharing Board Members Can Collude To Reduce Worker Mobility

In new research, Taylor Begley, Peter Haslag, and Daniel Weagley find that when firms begin sharing a common director, there is a significant reduction in the number of employees that switch jobs between the two companies. The reduction is largest when the firms compete in the same labor market and for those employees who are most costly for firms to replace. The results show the link between overlapping board members and anticompetitive labor practices is a surprisingly widespread phenomenon.

The Trends and Cases That Will Define US Antitrust in 2024

All eyes are on labor this year. Hiba Hafiz, Boston College: 2023 was a big year for labor antitrust. We saw the rise and fall of...

The Kroger-Albertsons Merger Will Not Help Grocery Competition

Kroger and Albertsons say they need to merge to compete with Walmart. Claire Kelloway argues that what they really want is Walmart’s monopsony power, and permitting mergers on these grounds will only harm suppliers, workers, and consumers.

Firm Consolidations Hurt Workers, But Likely Not Because of Market Power

In new research, Sabien Dobbelaere, Grace McCormack, Daniel Prinz, and Sándor Sóvágó find that mergers negatively impact labor market outcomes. Mergers result in job losses, and the earnings of workers who lose their jobs don’t recover for several years on average. The authors find these negative consequences are more likely attributable to the restructuring of labor forces than subsequent firm market power.

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