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Some Canadian Evidence on the Quit/Lay-Off Distinction

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  • Michael P. Kidd

Abstract

The question of whether or not there exists a meaningful economic distinction between quits and layoffs has attracted considerable attention. This paper utilizes a recent test proposed by J. S. Cramer and G. Ridder (1991) to test formally whether quits and layoffs may legitimately be aggregated into a single undifferentiated job-mover category. The paper also estimates wage equations for job stayers, quits, and layoffs, corrected for the endogeneity of job mobility. The major results are that quits and lay-off cannot legitimately be pooled and correction for sample selection would appear to be important.

Suggested Citation

  • Michael P. Kidd, 1994. "Some Canadian Evidence on the Quit/Lay-Off Distinction," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 709-733, August.
    • Handle: RePEc:cje:issued:v:27:y:1994:i:3:p:709-33
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    Cited by:

    1. Henneberger, Fred & Sousa-Poza, Alfonso, 2002. "Beweggründe und Determinanten zwischenbetrieblicher Mobilität: Die Schweiz in einer internationalen Perspektive (Motives and determinants of job-to-job mobility : Switzerland in an international persp," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(2), pages 205-231.
    2. Soonae Park & Byung-Yeon Kim & Wonchang Jang & Kyung-Min Nam, 2014. "Imperfect information and labor market bias against small and medium-sized enterprises: a Korean case," Small Business Economics, Springer, vol. 43(3), pages 725-741, October.
    3. Russell Smyth & Qingguo Zhai & Xiaoxu Li, 2009. "Determinants of turnover intentions among Chinese off farm migrants," Economic Change and Restructuring, Springer, vol. 42(3), pages 189-209, August.
    4. Cottini, Elena & Kato, Takao & Westergaard-Nielsen, Niels, 2011. "Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer–employee data," Labour Economics, Elsevier, vol. 18(6), pages 872-880.
    5. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    6. Ponzo, Michela, 2009. "On-the-job search in italian labour markets: an empirical analysis," MPRA Paper 24200, University Library of Munich, Germany.
    7. Sousa-Poza, Alfonso & Sousa-Poza, Andres A., 2007. "The effect of job satisfaction on labor turnover by gender: An analysis for Switzerland," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(6), pages 895-913, December.
    8. Henneberger, Fred & Sousa-Poza, Alfonso, 2002. "Beweggründe und Determinanten zwischenbetrieblicher Mobilität: Die Schweiz in einer internationalen Perspektive (Motives and determinants of job-to-job mobility : Switzerland in an international persp," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(2), pages 205-231.
    9. Wolter Hassink & Lourens Broersma, 2003. "Quits, layoffs, and job destruction," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1911-1914.

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