Job Satisfaction and Quits
AbstractWe test the wealth maximization theory of quitting behavior on the German Socioeconomic Panel (1985-2003). With the interpretation of job satisfaction as an expression of the experienced preference for the present job against available alternatives, the propensity to stay in the present job is simply related to the residual of a job satisfaction equation. We show that this residual is a better predictor of quits than the overall level of satisfaction. Furthermore, we validate a dynamic extension of the economic theory of quits for which uncertainty in the expectation of future events plays a decisive role.
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Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00203158.
Date of creation: Apr 2007
Date of revision:
Publication status: Published, Labour Economics, 2007, 14, 2, 251-268
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00203158
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Voluntary quit; job satisfaction; surprises; wealth maximization model;
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