← Research POLICY REPORT · 2023

The Effects of Noncompete Agreement Reforms on Business Formation: A Comparison of Hawaii and Oregon

Benjamin Glasner

Economic Innovation Group

Abstract

This research note compares two state-level noncompete reforms: Hawaii’s exemption for technology-sector workers and Oregon’s reform covering lower-wage workers. Hawaii’s targeted tech-sector exemption is associated with a 10 percent increase in the number of technology establishments, while Oregon’s broader low-wage reform shows no statistically significant effect on business formation. The contrast suggests that restricting noncompetes spurs entrepreneurship most effectively when it covers higher-skilled, knowledge-based workers.

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BibTeX

@techreport{glasner_2023_noncompetes_workingpaper,
  title = {The Effects of Noncompete Agreement Reforms on Business Formation: A Comparison of Hawaii and Oregon},
  author = {Glasner, Benjamin},
  institution = {Economic Innovation Group},
  year = {2023},
  month = mar,
}