Apr 13, 2010

One factor that could be contributing to IT wage suppression is alleged collusion on the part of some big tech companies. The Department of Justice is investigating a number of companies who supposedly have agreed not to poach each others top talent, according to recent news reports. 

"It seems that the DOJ is trying to figure out how and why agreements among firms not to poach each others' employees reduces competition in some way," said TIMOTHY GARDNER, professor at the Vanderbilt Owen Graduate School of Management. "My research shows that these agreements relieve colluding firms from having to respond to the competitive actions of their rivals," such as raising wages, he pointed out.

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