TY  - RPRT
        AU  - Krueger, Alan B.
AU  - Ashenfelter, Orley
        TI  - Theory and Evidence on Employer Collusion in the Franchise Sector
        PY  - 2018/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11672
        UR  - https://www.iza.org/publications/dp11672
        AB  - In this paper we study the role of covenants in franchise contracts that restrict the recruitment and hiring of employees from other units within the same franchise chain in suppressing competition for workers. Based on an analysis of 2016 Franchise Disclosure Documents, we find that "no-poaching of workers agreements" are included in a surprising 58 percent of major franchisors' contracts, including McDonald's, Burger King, Jiffy Lube and H&R Block. The implications of these no-poaching agreements for models of oligopsony are also discussed. No-poaching agreements are more common for franchises in low-wage and high-turnover industries.
        KW  - oligopsony
KW  - monopsony
KW  - no-poaching agreement
KW  - collusion
KW  - franchise
        ER  -