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Alternative Work Practices and Quit Rates: Methodological Issues and Empirical Evidence for Canada

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  • Rosa, Julio
  • Morissette, Rene
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    Abstract

    Using a nationally representative sample of establishments, we have examined whether selected alternative work practices (AWPs) tend to reduce quit rates. Overall, our analysis provides strong evidence of a negative association between these AWPs and quit rates among establishments of more than 10 employees operating in high-skill services. We also found some evidence of a negative association in low-skill services. However, the magnitude of this negative association was reduced substantially when we added an indicator of whether the workplace has a formal policy of information sharing. There was very little evidence of a negative association in manufacturing. While establishments with self-directed workgroups have lower quit rates than others, none of the bundles of work practices considered yielded a negative and statistically significant effect. We surmise that key AWPs might be more successful in reducing labour turnover in technologically complex environments than in low-skill ones.

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    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2003199&ObjType=46&lang=en&limit=0
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    Bibliographic Info

    Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2003199e.

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    Date of creation: 17 Mar 2003
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    Handle: RePEc:stc:stcp3e:2003199e

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    Postal: Tunney's Pasture, Ottawa, Ontario, K1A 0T6
    Web page: http://www.statcan.gc.ca
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    Related research

    Keywords: Hours of work and work arrangements; Inference and foundations; Labour; Labour mobility; turnover and work absences; Statistical methods; Workplace organization; innovation; performance;

    References

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    1. David Neumark & Peter Cappelli, 1999. "Do "High Performance" Work Practices Improve Establishment-Level Outcomes?," NBER Working Papers 7374, National Bureau of Economic Research, Inc.
    2. Brent Boning & Casey Ichniowski & Kathryn Shaw, 2007. "Opportunity Counts: Teams and the Effectiveness of Production Incentives," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 25, pages 613-650.
    3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
    4. Peter Cappelli & David Neumark, 2001. "External Job Churning and Internal Job Flexibility," NBER Working Papers 8111, National Bureau of Economic Research, Inc.
    5. John Godard, 2001. "High performance and the transformation of work? The implications of alternative work practices for the experience and outcomes of work," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(4), pages 776-805, July.
    6. Mortensen, D.T., 1998. "Equilibrium Unemployment with Wage Posting: Burdett-Mortensen Meet Pissarides," Papers, Centre for Labour Market and Social Research, Danmark- 98-14, Centre for Labour Market and Social Research, Danmark-.
    7. Rosemary Batt & Alexander J.S. Colvin & Jeffrey Keefe, 2002. "Employee voice, human resource practices, and quit rates: Evidence from the telecommunications industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(4), pages 573-594, July.
    8. Duan, Naihua, et al, 1983. "A Comparison of Alternative Models for the Demand for Medical Care," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 1(2), pages 115-26, April.
    9. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, Econometric Society, vol. 39(5), pages 829-44, September.
    10. Leung, S.F. & Yu, S., 1992. "On the Choice Between Sample Selection and Two-Part Models," RCER Working Papers, University of Rochester - Center for Economic Research (RCER) 337, University of Rochester - Center for Economic Research (RCER).
    11. Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-77, February.
    12. Omar Azfar & Stephan Danninger, 2001. "Profit sharing, employment stability, and wage growth," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(3), pages 619-630, April.
    13. Richard B. Freeman & Morris M. Kleiner & Cheri Ostroff, 2000. "The Anatomy of Employee Involvement and Its Effects on Firms and Workers," NBER Working Papers 8050, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Marcin W. Staniewski, 2011. "Management of Human Resources in the Aspect of Innovativeness," Contemporary Economics, University of Finance and Management in Warsaw, University of Finance and Management in Warsaw, vol. 5(1), March.

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