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The Substitution between Moves and Quits

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  • Zax, Jeffrey S

Abstract

If a worker's workplace and residence locations do not maximize utility, quits and moves are "substitutes"; a quit or a move alone is more likely than both together. Records of a single company confirm this. Simultaneous bivariate probit estimates of move and quit behavior demonstrate that uncontrolled shocks to quits and moves are negatively correlated. Furthermore, when the company relocated from the central business district to a suburb of its metropolitan area, the occurrence of either a quit or a move virtually precluded the occurrence of the other among employees whose journeys-to-work were lengthened by the relocation. Copyright 1991 by Royal Economic Society.

Suggested Citation

  • Zax, Jeffrey S, 1991. "The Substitution between Moves and Quits," Economic Journal, Royal Economic Society, vol. 101(409), pages 1510-1521, November.
  • Handle: RePEc:ecj:econjl:v:101:y:1991:i:409:p:1510-21
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    Cited by:

    1. Gilad Aharonovitz, 2011. "Knowledge-based spatial differences in economic activity, job related migration and housing related migration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(1), pages 159-188, February.
    2. Ismir Mulalic & Jos N. Van Ommeren & Ninette Pilegaard, 2014. "Wages and Commuting: Quasi‐natural Experiments' Evidence from Firms that Relocate," Economic Journal, Royal Economic Society, vol. 124(579), pages 1086-1105, September.
    3. Rouwendal, Jan, 1998. "Search Theory, Spatial Labor Markets, and Commuting," Journal of Urban Economics, Elsevier, vol. 43(1), pages 1-22, January.
    4. Lorenz, Olga & Goerke, Laszlo, 2015. "Commuting and Sickness Absence," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113173, Verein für Socialpolitik / German Economic Association.
    5. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part I: Theory," IZA Discussion Papers 924, Institute for the Study of Labor (IZA).
    6. Laszlo Goerke & Olga Lorenz, 2017. "Commuting and Sickness Absence," SOEPpapers on Multidisciplinary Panel Data Research 946, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Mette Deding & Trine Filges & Jos Van Ommeren, 2005. "Spatial job and residential mobility - the case of two-earner households," ERSA conference papers ersa05p256, European Regional Science Association.
    8. van Ommeren, Jos & Rietveld, Piet & Nijkamp, Peter, 1999. "Job Moving, Residential Moving, and Commuting: A Search Perspective," Journal of Urban Economics, Elsevier, vol. 46(2), pages 230-253, September.
    9. Haapanen, Mika, 2002. "Variation of migration behaviour in population," ERSA conference papers ersa02p283, European Regional Science Association.
    10. Detang-Dessendre, Cecile & Drapier, Carine & Jayet, Hubert, 1999. "The migration of unskilled youth: Is there any wage gain?," ERSA conference papers ersa99pa154, European Regional Science Association.
    11. Kronenberg, Kristin & Carree, Martin, 2010. "Job and residential mobility in the Netherlands: the influence of human capital, household composition and location," MPRA Paper 25840, University Library of Munich, Germany.
    12. Caliendo, Marco & Cobb-Clark, Deborah A. & Hennecke, Juliane & Uhlendorff, Arne, 2015. "Job Search, Locus of Control, and Internal Migration," IZA Discussion Papers 9600, Institute for the Study of Labor (IZA).
    13. Fu, Shihe & Viard, Brian, 2014. "Commute Costs and Labor Supply: Evidence from a Satellite Campus," MPRA Paper 53740, University Library of Munich, Germany.
    14. Eva Gutierrez Puigarnau & Jos N. van Ommeren, 2013. "Do rich households live farther away from their workplaces?," CPB Discussion Paper 244, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Modarres, Ali, 2003. "Polycentricity and transit service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(10), pages 841-864, December.
    16. Mette Deding & Trine Filges & Jos Van Ommeren, 2009. "Spatial Mobility And Commuting: The Case Of Two-Earner Households," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 113-147.
    17. Gutiérrez-i-Puigarnau, Eva & van Ommeren, Jos N., 2010. "Labour supply and commuting," Journal of Urban Economics, Elsevier, vol. 68(1), pages 82-89, July.
    18. Mette Deding & Trine Filges, 2010. "Geographical Mobility Of Danish Dual-Earner Couples-The Relationship Between Change Of Job And Change Of Residence," Journal of Regional Science, Wiley Blackwell, vol. 50(2), pages 615-634.
    19. van Ommeren, Jos N. & Gutiérrez-i-Puigarnau, Eva, 2011. "Are workers with a long commute less productive? An empirical analysis of absenteeism," Regional Science and Urban Economics, Elsevier, vol. 41(1), pages 1-8, January.
    20. van Ommeren, Jos & Rietveld, Piet & Nijkamp, Peter, 1997. "Commuting: In Search of Jobs and Residences," Journal of Urban Economics, Elsevier, vol. 42(3), pages 402-421, November.
    21. Kan, Kamhon, 2003. "Residential mobility and job changes under uncertainty," Journal of Urban Economics, Elsevier, vol. 54(3), pages 566-586, November.
    22. Eva Gutierrez-i-Puigarnau & Jos van Ommeren, 2009. "Labour Supply and Commuting: Implications for Optimal Road Taxes," Tinbergen Institute Discussion Papers 09-008/3, Tinbergen Institute.
    23. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Theory," Working Papers 05-1, University of Aarhus, Aarhus School of Business, Department of Economics.
    24. Kan, Kamhon, 2002. "Residential mobility with job location uncertainty," Journal of Urban Economics, Elsevier, vol. 52(3), pages 501-523, November.

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