- Title
- Ownership, Agency and Wages: An Examination of the Fast Food Industry
- Author(s)
- Alan B. Krueger Alan Krueger (Princeton University)
- Abstract
- This paper examines the determinants of wages and fringe benefits in the fast food industry- The focus of the paper is on exploring differences between company-owned and franchised restaurants because agency problems are likely to affect the management and operation of company-owned restaurants- Empirical analysis of two data sets finds that total labor compensation for non-management employees is slightly greater at company-owned outlets than franchisee-owned outlets, all else held constant. Furthermore, workers' wages grow more rapidly over time at company-owned restaurants than franchisee-owned restaurants- In addition, the results suggest that wage differentials for race, sex and marital status are small in the fast food industry relative to other industries.
- Creation Date
- 1987-09
- Section URL ID
- IRS
- Paper Number
- 226
- URL
- https://dataspace.princeton.edu/bitstream/88435/dsp01r207tp33r/1/226.pdf
- File Function
- Jel
- D71
- Keyword(s)
- agency, efficiency wages, fast food, wage differentials
- Suppress
- false
- Series
- 1