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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Volume (Year): 27 (1994) Issue (Month): 3 (August) Pages: 709-33 Download reference. The following formats are available: HTML
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Handle: RePEc:cje:issued:v:27:y:1994:i:3:p:709-33
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