Repeated Job Quits: Stepping stones or learning about quality?
AbstractDespite the fact that worker quits are often associated with wage gains and higheroverall job satisfaction, many workers quit once again within one or two years afterchanging jobs initially. Such repeated job quit behavior may arise as a steppingstone to better quality jobs (Burdett, 1978) or as a response to unexpectedly lowjob quality (Jovanovic, 1979).This paper tests the validity of both explanations using data from the UK labormarket in order to improve our understanding of job search behavior. Results frompanel estimations of job quits and job satisfaction illustrate that the labor market ischaracterized by elements of both explanations. More specifically, a variancedecomposition shows that the stepping stone model explains 80 percent ofrepeated job quit behavior; the remaining 20 percent is the result of learning aboutjob quality. Hence, workers appear to need several job quits to find their mostpreferred job and multiple job quits serve as a stepping stone to more satisfaction atwork.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 010.
Date of creation: 2008
Date of revision:
Contact details of provider:
Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
education; training and the labour market;
Other versions of this item:
- Gielen, Anne C., 2008. "Repeated Job Quits: Stepping Stones or Learning about Quality?," IZA Discussion Papers 3838, Institute for the Study of Labor (IZA).
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-10 (All new papers)
- NEP-HRM-2009-01-10 (Human Capital & Human Resource Management)
- NEP-LAB-2009-01-10 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Neal, Derek, 1999.
"The Complexity of Job Mobility among Young Men,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(2), pages 237-61, April.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2004.
"How Important is Methodology for the estimates of the determinants of Happiness?,"
Royal Economic Society, vol. 114(497), pages 641-659, 07.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
- José Ignacio García Pérez & Yolanda Rebollo Sanz, 2004.
"Wage changes through job mobility in Europe: A multinomial endogenous switching approach,"
Economic Working Papers at Centro de Estudios Andaluces
E2004/70, Centro de Estudios Andaluces.
- Garcia Perez, Jose Ignacio & Rebollo Sanz, Yolanda, 2005. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Labour Economics, Elsevier, vol. 12(4), pages 531-555, August.
- Gueorgui Kambourov & Iourii Manovskii, 2008. "Rising Occupational And Industry Mobility In The United States: 1968-97," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(1), pages 41-79, 02.
- George A. Akerlof & Andrew K. Rose & Janet L. Yellen, 1988. "Job Switching and Job Satisfaction in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 495-594.
- Böckerman, Petri & Ilmakunnas, Pekka, 2007. "Job disamenities, job satisfaction, quit intentions, and actual separations: putting the pieces together," MPRA Paper 3245, University Library of Munich, Germany.
- Freeman, Richard B, 1978.
"Job Satisfaction as an Economic Variable,"
American Economic Review,
American Economic Association, vol. 68(2), pages 135-41, May.
- Joseph G. Altonji & Christina H. Paxson, 1986. "Job Characteristics and Hours of Work," NBER Working Papers 1895, National Bureau of Economic Research, Inc.
- 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.
- Louis Lévy-Garboua & Claude Montmarquette & Véronique Simonnet, 2007.
"Job Satisfaction and Quits,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Ronni Pavan, 2010. "The Role of Career Choice in Understanding Job Mobility," LABOUR, CEIS, vol. 24(2), pages 107-127, 06.
- 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.
- Adele Bergin, 2013. "Job Changes and Wage Changes: Estimation with Measurement Error in a Binary Variable," Economics, Finance and Accounting Department Working Paper Series n240-13.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
- Ponzo, Michela, 2010.
"On-the-job search in Italian labour markets: an empirical analysis,"
25485, University Library of Munich, Germany.
- 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.
- Ponzo, Michela, 2009. "On-the-job Search in Italian Labour Markets: An Empirical Analysis," MPRA Paper 15476, University Library of Munich, Germany.
- Ponzo, Michela, 2009. "On-the-job search in italian labour markets: an empirical analysis," MPRA Paper 24200, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charles Bollen).
If references are entirely missing, you can add them using this form.