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Vertical Restraints and Labor Markets in Franchised Industries

In: Big Data Applications in Labor Economics, Part B

Author

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  • Brian Callaci
  • Sérgio Pinto
  • Marshall Steinbaum
  • Matt Walsh

Abstract

This article combines 530 digitized Franchise Disclosure Documents and standard contracts with employer-identified job ads from Burning Glass Technologies to establish stylized facts about franchising labor markets and their relation to the vertical restraints and contractual provisions that limit the autonomy of franchisees vis a vis their franchisors. We report novel findings about the application of vertical restraints like Resale Price Maintenance, Exclusive Dealing, and No-poaching Restrictions, among many others, to a low wage workforce. A legal regime that favors the franchising business model incentivizes franchisees to profit at the expense of workers and to limit egalitarian tendencies operating in the workplace.

Suggested Citation

  • Brian Callaci & Sérgio Pinto & Marshall Steinbaum & Matt Walsh, 2024. "Vertical Restraints and Labor Markets in Franchised Industries," Research in Labor Economics, in: Big Data Applications in Labor Economics, Part B, volume 52, pages 255-301, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-91212024000052b033
    DOI: 10.1108/S0147-91212024000052B033
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