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Factors Affecting Quits and Layoffs in Spanish Labour Market

  • Caparros, A.

    ()

  • Navarro, M.L.

    ()

Registered author(s):

    During the last decade, unemployment rates in the European Union have been higher than in other regions, e.g., the United States, and these are even higher in Spain. It has been argued that the different degrees of labour mobility between the European and the American labour markets can account for the differences in the pattern observed. This paper follows the McLaughlin's model (1991) and provides empirical evidence regarding the factors determining quits and layoffs due to contract termination and non-renewal in Spain, following the efficient-turnover theory and wage flexibility. The data was obtained from the Spanish Household Panel Survey (PHOGUE) conducted by the Instituto Nacional de Estadística (INE 1995). Our evidence, on the one hand, indicates that workers' characteristics influence on the probability of changing job. On the other hand, the influency of the factors affecting labour mobility is different depending on whether job separation was triggered by quits or layoffs.

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    Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

    Volume (Year): 5 (2005)
    Issue (Month): 4 ()
    Pages:

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    Handle: RePEc:eaa:aeinde:v:5:y:2005:i:4_3
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    1. Robert H. Topel & Michael P. Ward, 1988. "Job Mobility and the Careers of Young Men," NBER Working Papers 2649, National Bureau of Economic Research, Inc.
    2. Roger Klein & Richard H. Spady & Andrew Weiss, 1987. "Factors Affecting the Output and Quit Propensities of Production Workers," NBER Working Papers 2184, National Bureau of Economic Research, Inc.
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    5. Garcia-Crespo, Dolores, 2001. " Promotions in the Spanish Labour Market: Differences by Gender," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(5), pages 599-615, December.
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    8. Rainer Winkelmann & Klaus Zimmermann, 1998. "Is job stability declining in Germany? Evidence from count data models," Applied Economics, Taylor & Francis Journals, vol. 30(11), pages 1413-1420.
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    15. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
    16. Jung, Robert C & Winkelmann, Rainer, 1993. "Two Aspects of Labor Mobility: A Bivariate Poisson Regression Approach," Empirical Economics, Springer, vol. 18(3), pages 543-56.
    17. Viscusi, W Kip, 1980. "A Theory of Job Shopping: A Bayesian Perspective," The Quarterly Journal of Economics, MIT Press, vol. 94(3), pages 609-14, May.
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