IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v68y2015i5p977-1006.html
   My bibliography  Save this article

The Impact of Franchising on Labor Standards Compliance

Author

Listed:
  • MinWoong Ji
  • David Weil

Abstract

Recent studies document pervasive noncompliance with basic labor standards in industries with high concentrations of low-wage workers. The authors examine how franchising, a common form of business organization in low-wage industries, affects compliance. They estimate the effect of franchise ownership on compliance with federal minimum wage and overtime standards in the fast food industry using unique data on Top 20 branded restaurants. Franchised outlets have far higher levels of noncompliance than comparable company-owned establishments. The authors argue that observed differences arise from internal incentives facing franchisees versus franchisors rather than from external enforcement pressures facing the parties.

Suggested Citation

  • MinWoong Ji & David Weil, 2015. "The Impact of Franchising on Labor Standards Compliance," ILR Review, Cornell University, ILR School, vol. 68(5), pages 977-1006, October.
    • Handle: RePEc:sae:ilrrev:v:68:y:2015:i:5:p:977-1006
    as

    Download full text from publisher

    File URL: http://ilr.sagepub.com/content/68/5/977.abstract
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ankita Patnaik, "undated". "Exploring External Data to Enhance Monitoring and Evaluation of WHD’s Compliance Strategies," Mathematica Policy Research Reports 13d036c972ee44c491704e496, Mathematica Policy Research.
    2. Mark D Easton & Andrea M Noack & Leah F Vosko, 2021. "Are franchisees more prone to employment standards violations than other businesses? Evidence from Ontario, Canada," The Economic and Labour Relations Review, , vol. 32(1), pages 39-64, March.
    3. Bernhardt, Annette & Batt, Rosemary & Houseman, Susan & Appelbaum, Eileen, 2016. "Domestic Outsourcing in the U.S.: A Research Agenda to Assess Trends and Effects on Job Quality," Institute for Research on Labor and Employment, Working Paper Series qt2fm4m444, Institute of Industrial Relations, UC Berkeley.
    4. Annette Bernhardt & Rosemary L. Batt & Susan Houseman & Eileen Appelbaum, 2016. "Domestic Outsourcing in the United States: A Research Agenda to Assess Trends and Effects on Job Quality," Upjohn Working Papers 16-253, W.E. Upjohn Institute for Employment Research.
    5. Jakob Utgård, 2018. "Retail Chains’ Corporate Social Responsibility Communication," Journal of Business Ethics, Springer, vol. 147(2), pages 385-400, January.
    6. Andrew S. Green, 2017. "Hours Off the Clock," Working Papers 17-44, Center for Economic Studies, U.S. Census Bureau.
    7. Wei Wei, 2024. "Never cross the red line? Analysing employment relations practices and the behaviour of front‐line managers in Chinese McDonald's stores," Industrial Relations Journal, Wiley Blackwell, vol. 55(2), pages 100-118, March.
    8. Billinger, Stephan & Rosenbaum, Stephen Mark, 2019. "Discretionary mechanisms and cooperation in hierarchies: An experimental study," Journal of Economic Psychology, Elsevier, vol. 74(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:68:y:2015:i:5:p:977-1006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.