Are franchises bad employers?
Franchise jobs are described as representing the epitome of the "low road" approach to managing employees. High turnover, little training, deskilled jobs, and little employee involvement, practices often seen as unsophisticated. Research on franchise operations suggests that their basic operating principles and practices tend to be more professional and advanced than those of equivalent independent operators. We might therefore expect their employee management practices to be more advanced as well, challenging the stereotype of franchise jobs. We use data from a national probability sample of establishments to examine the relationship between franchise status and employment practices.
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- Scott Shane & Maw-Der Foo, 1999. "New Firm Survival: Institutional Explanations for New Franchisor Mortality," Management Science, INFORMS, vol. 45(2), pages 142-159, February.
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"How workers fare when employers innovate,"
Working Paper Series
2003-22, Federal Reserve Bank of San Francisco.
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- Hennessy, David A., 2003. "Property rights, productivity, and the nature of noncontractible actions in a franchise system," Journal of Economic Behavior & Organization, Elsevier, vol. 52(4), pages 443-468, December.
- Hennessy, David A., 2003. "Property Rights, Productivity, and the Nature of Noncontractible Actions in a Franchise System," Staff General Research Papers Archive 11750, Iowa State University, Department of Economics.
- Rubin, Paul H, 1978. "The Theory of the Firm and the Structure of the Franchise Contract," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 223-233, April.
- Wade L. Thomas & Michael J. O'Hara & Frank W. Musgrave, 1990. "The Effects of Ownership and Investment upon the Performance of Franchise Systems," The American Economist, , vol. 34(1), pages 54-61, March.
- Alan B. Krueger, 1991. "Ownership, Agency, and Wages: An Examination of Franchising in the Fast Food Industry," The Quarterly Journal of Economics, Oxford University Press, vol. 106(1), pages 75-101.
- Knott, Anne Marie & McKelvey, Bill, 1999. "Nirvana efficiency: a comparative test of residual claims and routines," Journal of Economic Behavior & Organization, Elsevier, vol. 38(4), pages 365-383, April.
- John Godard, 2001. "High Performance and the Transformation of Work? The Implications of Alternative Work Practices for the Experience and Outcomes of Work," ILR Review, Cornell University, ILR School, vol. 54(4), pages 776-805, July.
- O. Brown Jr., William, 1998. "Transaction costs, corporate hierarchies, and the theory of franchising," Journal of Economic Behavior & Organization, Elsevier, vol. 36(3), pages 319-329, August. Full references (including those not matched with items on IDEAS)
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