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The Effect of Franchise No-Poaching Restrictions on Worker Earnings

Author

Listed:
  • Callaci, Brian

    (Open Markets Institute)

  • Gibson, Matthew

    (Williams College)

  • Pinto, Sergio

    (University of Maryland)

  • Steinbaum, Marshall

    (University of Utah)

  • Walsh, Matt

    (Burning Glass Technologies)

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.

Suggested Citation

  • Callaci, Brian & Gibson, Matthew & Pinto, Sergio & Steinbaum, Marshall & Walsh, Matt, 2023. "The Effect of Franchise No-Poaching Restrictions on Worker Earnings," IZA Discussion Papers 16330, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16330
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    Cited by:

    1. Honey Batra & Amanda M. Michaud & Simon Mongey, 2023. "Online Job Posts Contain Very Little Wage Information," Opportunity and Inclusive Growth Institute Working Papers 083, Federal Reserve Bank of Minneapolis.

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    More about this item

    Keywords

    employer market power; franchising; antitrust; oligopsony;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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