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Some Canadian Evidence on the Quit/Lay-Off Distinction


  • Michael P. Kidd


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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    References listed on IDEAS

    1. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    2. Jonathan Eaton & Mark Gersovitz, 1981. "Debt with Potential Repudiation: Theoretical and Empirical Analysis," Review of Economic Studies, Oxford University Press, vol. 48(2), pages 289-309.
    3. Frenkel, Jacob A & Razin, Assaf, 1986. "Fiscal Policies in the World Economy," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 564-594, June.
    4. R. Dornbusch, 1984. "External Debt, Budget Deficits and Disequilibrium Exchange Rates," Working papers 347, Massachusetts Institute of Technology (MIT), Department of Economics.
    5. Ronald W. Jones & Douglas D. Purvis, 1981. "International Differences in Response to Common External Shocks: The Role of Purchasing Power Parity," Working Papers 419, Queen's University, Department of Economics.
    6. Alvin E Roth, 2008. "Axiomatic Models of Bargaining," Levine's Working Paper Archive 122247000000002376, David K. Levine.
    7. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
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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. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. repec:iab:iabmit:v:35:i:2:p:205-231 is not listed on IDEAS
    8. Wolter Hassink & Lourens Broersma, 2003. "Quits, layoffs, and job destruction," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1911-1914.
    9. Ponzo, Michela, 2009. "On-the-job search in italian labour markets: an empirical analysis," MPRA Paper 24200, University Library of Munich, Germany.

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