The Effect of Franchise No-Poaching Restrictions on Worker Earnings

Abstract We evaluate the nationwide impact of the Washington State Attorney General's 2018-20 enforcement campaign against no-poach clauses in franchising contracts, which prohibited worker movement across locations within a chain. Implementing a staggered difference-in-differences research design using Burning Glass Technologies job vacancies and Glassdoor salary reports from numerous industries, we estimate a 6% increase in posted annual earnings from the job vacancy data and a 4% increase in worker-reported earnings.

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Publication Details

Journal
The Review of Economics and Statistics
Published
2024-11-25
DOI
https://doi.org/10.1162/rest_a_01544
Citations
5
Primary Topic
Law, Economics, and Judicial Systems
Type
article
Field-Weighted Citation Impact
5.65
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article

The Effect of Franchise No-Poaching Restrictions on Worker Earnings

Brian Callaci, Sérgio Pinto, Matthew Gibson, Marshall Steinbaum et al.
5 citations
The Review of Economics and Statistics
Law, Economics, and Judicial Systems
5.65
article

The Effect of Franchise No-Poaching Restrictions on Worker Earnings

Brian Callaci, Sérgio Pinto, Matthew Gibson, Marshall Steinbaum, Matt Walsh
article en
5 citations

Abstract

Abstract We evaluate the nationwide impact of the Washington State Attorney General's 2018-20 enforcement campaign against no-poach clauses in franchising contracts, which prohibited worker movement across locations within a chain. Implementing a staggered difference-in-differences research design using Burning Glass Technologies job vacancies and Glassdoor salary reports from numerous industries, we estimate a 6% increase in posted annual earnings from the job vacancy data and a 4% increase in worker-reported earnings.

The Review of Economics and Statistics
Iscte – Instituto Universitário de Lisboa (PT), University of Utah (US), Williams College (US), Burning Rock Biotech (China) (CN), University of Maryland, College Park (US)
Decent work and economic growth
Openalex Percentile: Top 4%
Law, Economics, and Judicial Systems
5.65
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