Taxicab companies in the United States typically own a large number of cabs and licenses; taxicab drivers

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Taxicab companies in the United States typically own a large number of cabs and licenses; taxicab drivers then pay a daily fee to the owner to lease a cab for the day. In return, the drivers keep their fares (so that, in essence, they receive a 100 percent commission on their sales). Why did this type of compensation system develop in the taxicab industry?
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Labor Economics

ISBN: 978-0073523200

6th edition

Authors: George J. Borjas

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