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Factors affecting quits and layoffs in Spain

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Author Info
Antonio Caparrós Ruiz () (Universidad de Málaga)
Mª. Lucía Navarro Gómez () (Universidad de Málaga)
Abstract

During the last decade, unemployment rates in the European Union have been higher than in other regions, e.g., the United States, and these are even higher in Spain. It has been argued that the different degrees of labour mobility between the European and the American labour markets can account for the differences in the pattern observed. This paper follows the McLaughlin's model (1991) and provides empirical evidence regarding the factors determining quits and layoffs due to contract termination and non-renewal in Spain, following the efficient-turnover theory and wage flexibility. The data was obtained from the Spanish Household Panel Survey (PHOGUE) conducted by the Instituto Nacional de Estadística (INE 1995). Our evidence, on the one hand, indicates that workers' characteristics influence on the probability of changing job. On the other hand, the influency of the factors affecting labour mobility is different depending on whether job separation was triggered by quits or layoffs.

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Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2002/16.

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Length: 24 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:cea:doctra:e2002_16

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Related research
Keywords: quit; layoff; wage revision and bivariate probit.;

Find related papers by JEL classification:
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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  1. Mortensen, Dale T, 1988. "Wages, Separations, and Job Tenure: On-the-Job Specific Training or Matching?," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 445-71, October. [Downloadable!] (restricted)
  2. Ahn, N. & de la Rica, S. & Ugidos, A., 1998. "Willingness to Move for Work and Unemployment Duration in Spain," Papers 9801, Centro de Estudios Monetarios Y Financieros-.
    Other versions:
  3. Meitzen, Mark E, 1986. "Differences in Male and Female Job-quitting Behavior," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 151-67, April. [Downloadable!] (restricted)
  4. Edward P. Lazear, 1984. "Raids and Offermatching," NBER Working Papers 1419, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Parsons, Donald O, 1972. "Specific Human Capital: An Application to Quit Rates and Layoff Rates," Journal of Political Economy, University of Chicago Press, vol. 80(6), pages 1120-43, Nov.-Dec.. [Downloadable!] (restricted)
  6. Viscusi, W Kip, 1980. "A Theory of Job Shopping: A Bayesian Perspective," The Quarterly Journal of Economics, MIT Press, vol. 94(3), pages 609-14, May. [Downloadable!] (restricted)
  7. Francine D. Blau & Larry M. Kahn, 1981. "Race and sex differences in quits by young workers," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 34(4), pages 563-577, July.
  8. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May. [Downloadable!] (restricted)
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  9. McLaughlin, Kenneth J, 1991. "A Theory of Quits and Layoffs with Efficient Turnover," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 1-29, February. [Downloadable!] (restricted)
  10. Sicherman, Nachum, 1990. "Education and occupational mobility," Economics of Education Review, Elsevier, vol. 9(2), pages 163-179, June. [Downloadable!] (restricted)
  11. Booth, Alison L & Francesconi, Marco & Garcia-Serrano, Carlos, 1997. "Job Tenure: Does History Matter?," CEPR Discussion Papers 1531, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  12. Jung, Robert C & Winkelmann, Rainer, 1993. "Two Aspects of Labor Mobility: A Bivariate Poisson Regression Approach," Empirical Economics, Springer, vol. 18(3), pages 543-56.
  13. 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. [Downloadable!] (restricted)
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  14. Klein, Roger & Spady, Richard & Weiss, Andrew, 1991. "Factors Affecting the Output and Quit Propensities of Production Workers," Review of Economic Studies, Blackwell Publishing, vol. 58(5), pages 929-53, October. [Downloadable!] (restricted)
    Other versions:
  15. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June. [Downloadable!] (restricted)
  16. Royalty, Anne Beeson, 1998. "Job-to-Job and Job-to-Nonemployment Turnover by Gender and Education Level," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 392-443, April. [Downloadable!] (restricted)
  17. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9. [Downloadable!] (restricted)
  18. Garcia-Crespo, Dolores, 2001. " Promotions in the Spanish Labour Market: Differences by Gender," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(5), pages 599-615, December. [Downloadable!] (restricted)
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