Table 3

No-Poach Clause Logit Estimates—Franchise and Industry Characteristics

Explanatory VariableMean [SD]Has Agreement = 1
(1)(2)(3)(4)(5)
Constant0.2380.420-0.026-1.687*-1.524
(0.298)(0.467)(0.278)(0.956)(1.045)
Age of franchisor32.40.003-0.005
[16.1](0.008)(0.009)
Franchise chain share (Percent of establishments)7.58-0.13-0.002
[14.0](0.018)(0.002)
Industry franchise share (Percent of employment)33.90.011-0.011-0.011
[26.7](0.007)(0.011)(0.011)
New-hire rate28.20.085**0.085**
[9.5](0.041)(0.042)
Pseudo R-squared0.00040.0060.0140.0610.062
Sample size156150150150150
  • Notes: Mean of dependent variable is 0.58. Franchise chain share is total of franchisor’s units as a percent of the number of establishments in six-digit NAICS industry. Industry franchise share is percent of workers in six-digit NAICS industry employed by a franchise. New-hire rate is percentage of workers in industry with one year or less of tenure. Standard errors allow for clustering at the two-digit CPS industry level. Statistical significance:

  • * p < 0.10,

  • ** p < 0.05.