Star Wars : Exclusive Talent and Collusive Outcomes in Labor Markets

@inproceedings{Selvaggi2009StarW,
  title={Star Wars : Exclusive Talent and Collusive Outcomes in Labor Markets},
  author={Mariano Selvaggi and Lu{\'i}s Vasconcelos},
  year={2009}
}
Exclusive employment contracts and collusion on wages are alternative mechanisms that …rms may use to extract surplus from highly productive workers (“stars”). Exclusivity clauses are common in many industries, but the Courts often refrain from enforcing them, citing harm to workers due to restricted turnover. We analyze the interaction between these two channels of surplus extraction and argue that in the presence of collusion, enforcement of exclusive contracts can, in fact, bene…t the… CONTINUE READING

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