Investigating the Efficiency Wage Theory in US Fast Food Restaurants

The relationship between pay and productivity in fast food businesses in the United States is investigated in this research. The study investigates whether the industry’s expansion is based on increased labour productivity. The author chooses four big fast food companies and compares the performance of the representative firm to the group mean. Wages are generally lower than the economic sector average, although productivity is not lower than the national average, according to Bureau of Labor Statistics data. McDonald’s, the representative firm, does not exhibit a major change in productivity; rather, productivity has remained consistent throughout time. The fast food industry’s wage was lower than the economy’s average, but productivity was not lower, according to the study. It is suggested that the relationship between pay and productivity be investigated further. Other variables that affect pay and productivity will be controlled in future studies.

Author(S) Details

Jaesun Lee
Claremont Graduate University, United States of America.

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