Download This PaperThe Effect of Franchise No-poaching Restrictions on Worker Earnings
50 Pages Posted: 25 Jul 2022 Last revised: 26 Jul 2023
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The Effect of Franchise No-poaching Restrictions on Worker Earnings
The Effect of Franchise No-Poaching Restrictions on Worker Earnings
Date Written: July 20, 2023
Abstract
We evaluate the impact of the Washington State Attorney General’s enforcement campaign against employee no-poaching clauses in franchising contracts, which unfolded from 2018 through early 2020. Implementing a staggered difference-in-differences research design using Burning Glass Technologies job vacancies and Glassdoor salary reports, we document the nationwide effect of the enforcement campaign on pay at franchising chains across numerous industries. Our preferred specification estimates a 6.6% increase in posted annual earnings from the job vacancy data and an approximate 4% increase in worker-reported earnings. (JEL: J42, K21, L40, J31)
Keywords: franchising, monopsony, no-poach, horizontal anti-competitive practices
JEL Classification: J42, K21, L40, J31
Suggested Citation: Suggested Citation
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