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Some Canadian Evidence on the Quit/Lay-Off Distinction

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  • Michael P. Kidd

Abstract

The question of whether or not there exists a meaningful economic distinction between quits and layoffs has attracted considerable attention. This paper utilizes a recent test proposed by J. S. Cramer and G. Ridder (1991) to test formally whether quits and layoffs may legitimately be aggregated into a single undifferentiated job-mover category. The paper also estimates wage equations for job stayers, quits, and layoffs, corrected for the endogeneity of job mobility. The major results are that quits and lay-off cannot legitimately be pooled and correction for sample selection would appear to be important.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 27 (1994)
Issue (Month): 3 (August)
Pages: 709-33

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Handle: RePEc:cje:issued:v:27:y:1994:i:3:p:709-33

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Cited by:
  1. Sousa-Poza, Alfonso & Sousa-Poza, Andres A., 2007. "The effect of job satisfaction on labor turnover by gender: An analysis for Switzerland," The Journal of Socio-Economics, Elsevier, vol. 36(6), pages 895-913, December.
  2. Cottini, Elena & Kato, Takao & Westergaard-Nielsen, Niels, 2011. "Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer–employee data," Labour Economics, Elsevier, vol. 18(6), pages 872-880.
  3. Russell Smyth & Qingguo Zhai & Xiaoxu Li, 2008. "Determinants Of Turnover Intentions Among Chinese Off Farm Migrants," Monash Economics Working Papers 03/08, Monash University, Department of Economics.
  4. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 19(2), pages 213-232, July.
  5. Wolter Hassink & Lourens Broersma, 2003. "Quits, layoffs, and job destruction," Applied Economics, Taylor and Francis Journals, vol. 35(18), pages 1911-1914.
  6. Ponzo, Michela, 2009. "On-the-job search in italian labour markets: an empirical analysis," MPRA Paper 24200, University Library of Munich, Germany.

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