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The Effect of Franchise No-Poaching Restrictions on Worker Earnings

Brian Callaci¹; Matthew Gibson²; Sérgio Pinto³; Marshall Steinbaum⁴; Matt Walsh⁵

¹ Open Markets Institute [email protected] · ² Williams College and IZA [email protected] · ³ University of Maryland at College Park and Instituto Universitário de Lisboa (ISCTE-IUL), DINAMIA'CET, Lisbon, Portugal [email protected] · ⁴ University of Utah [email protected] · ⁵ Burning Glass Technologies

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.

DOI

10.1162/rest_a_01544

Pages

1-35

Language

en

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