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.
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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
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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, Vacancies, and Immigrant Workers - - - 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)
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