Conference Proceedings

Fifth International Conference On Advances in Economics, Management and Social Study - EMS 2016

Examining Efficiency Wage Theory in US Fast Food Restaurants

Author(s) : Jaesun Lee

Abstract

This paper investigates the correlations between wage and productivity in United States fast food restaurants. The research examines whether or not the industry’s expansion is based on the labor productivity improvement. The author selects four major fast food firms, and compares the representative firm’s performances with its group mean. Using data from Bureau of Labor Statics, the wages are lower generally than the economic sector average; but the productivity is not lower than the National average. The representative firm, McDonald, does not show significant change in productivity, rather productivity has followed the stable trend over time. The research found that the wage in the fast food industry was lower than economic sector average, but productivity was not lower.

Conference Title : Fifth International Conference On Advances in Economics, Management and Social Study - EMS 2016
Conference Date(s) : 12-13 March,2016
Place : G Tower Hotel, Kuala Lumpur, Malaysia
No fo Author(s) : 1
DOI : 10.15224/978-1-63248-089-7-71
Page(s) : 51 - 54
Electronic ISBN : 978-1-63248-089-7
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