IZA Institute of Labor Economics - The Effect of Franchise No-Poaching Restrictions on Worker Earnings

Chief economist Brian Callaci co-author a working paper on No-Poaching Restrictions and the impact had Worker Earnings.

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 workerreported earnings.

Read the full paper below or download here.