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Layoffs, quits and wage negotiations

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  • Gielen, Anne C.
  • van Ours, Jan C.

Abstract

This paper studies the ex-ante effect of worker separations on wage negotiations using matched worker-firm data from The Netherlands. We find that wage negotiations aim to prevent separations; workers with a high propensity to quit are offered higher wages, while workers with a high layoff probability give up some of their wage.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 109 (2010)
Issue (Month): 2 (November)
Pages: 108-111

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Handle: RePEc:eee:ecolet:v:109:y:2010:i:2:p:108-111

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Wage negotiations Quits Layoffs Matched worker-firm data;

References

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  1. Gielen, Anne & van Ours, Jan C, 2005. "Age-Specific Cyclical Effects in Job Reallocation and Labour Mobility," CEPR Discussion Papers 5161, C.E.P.R. Discussion Papers.
  2. Shintaro Yamaguchi, 2006. "Job Search, Bargaining, and Wage Dynamics," ISER Discussion Paper 0658, Institute of Social and Economic Research, Osaka University.
  3. Gielen, A. C. & Ours, J.C. van, 2006. "Why do Worker-Firm Matches Dissolve?," Discussion Paper 2006-57, Tilburg University, Center for Economic Research.
  4. Joseph G. Altonji & Robert A. Shakotko, 1985. "Do Wages Rise With Job Seniority?," NBER Working Papers 1616, National Bureau of Economic Research, Inc.
  5. Farber, Henry S., 1999. "Mobility and stability: The dynamics of job change in labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 37, pages 2439-2483 Elsevier.
  6. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  7. Galizzi, Monica & Lang, Kevin, 1998. "Relative Wages, Wage Growth, and Quit Behavior," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 367-91, April.
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Cited by:
  1. Krause, Annabelle, 2013. "Don’t worry, be happy? Happiness and reemployment," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 1-20.

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