Ownership, Agency and Wages: An Examination in the Fast Food Industry / Alan B. Krueger.

Format:

Book

Author/Creator:

Krueger, Alan B.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w3334.

NBER working paper series no. w3334

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Ownership, Agency and Wages

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1990.

Summary:

This paper estimates the difference in compensation between company-owned and franchisee-owned fast food restaurants. The contrast is of interest because contractual arrangements give managers of company-owned outlets less of an incentive to monitor and supervise employees. Estimates based on two data sets suggest that employee compensation is slightly greater at company-owned outlets than franchisee-owned outlets. The earnings gap is 9 percent for assistant and shift managers and 2 percent for full-time crew workers. Furthermore. the tenure-earnings profile is steeper at company-owned restaurants. These findings suggest that monitoring difficulties influence the timing and generosity of compensation.

Notes:

Print version record

April 1990.