Market Concentration, Earnings and Turnover: No-Poaching Clauses in the Quick Service Restaurant Industry
Abstract/Contents
- Abstract
- I analyze the impact of Quick Service Restaurant franchisors’ no-poaching clauses on historical employee earnings and turnover for the Restaurants and Other Eating Places industry. I examine the 41 largest Quick Service Restaurant franchisors and the labor markets of 10 major U.S. cities over 11 years from 2006 to 2016. No-poaching clauses restrict intra-franchisor movement of employees and, if in use, can be found in a brand’s franchise disclosure documents. I create a panel dataset using no-poaching agreements data, industry data on earnings and turnover, and business establishments’ employment data. Using a panel regression with fixed city and time effects, I determine that no-poaching clauses have an insignificant effect on turnover but do exhibit a statistically significant effect on earnings. Specifically, a 25 percent increase in market concentration related to no-poaching agreements results in a 2-6 percent decrease in average monthly earnings, depending on employment status, age, and education level.
Description
| Type of resource | text |
|---|---|
| Date created | May 3, 2019 |
Creators/Contributors
| Author | Tejeda, Manuel David |
|---|
Subjects
| Subject | Department of Economics |
|---|---|
| Subject | No-Poaching Clauses |
| Subject | Market Concentration |
| Subject | Quick Service Restaurant |
| Subject | Franchisor |
| Subject | Turnover |
| Subject | Earnings |
| Subject | Herfindahl-Hirschman Index |
| Subject | Group-Specific Labor Index |
| Subject | United States |
| Genre | Thesis |
Bibliographic information
| Related item | |
|---|---|
| Location | https://purl.stanford.edu/mb279nb8652 |
Access conditions
- Use and reproduction
- User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
Preferred citation
- Preferred Citation
- Tejeda, Manuel David. (2019). Market Concentration, Earnings and Turnover: No-Poaching Clauses in the Quick Service Restaurant Industry. Stanford Digital Repository. Available at: https://purl.stanford.edu/mb279nb8652
Collection
Stanford University, Department of Economics, Honors Theses
View other items in this collection in SearchWorksContact information
- Contact
- manueldtejeda@gmail.com
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