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Layoffs, quits and wage negotiations

  • Gielen, Anne C.
  • van Ours, Jan C.

This paper studies the ex-ante effect of worker separations on wage negotiations using matched worker-firm data from The Netherlands. We find that wage negotiations aim to prevent separations; workers with a high propensity to quit are offered higher wages, while workers with a high layoff probability give up some of their wage.

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File URL: http://www.sciencedirect.com/science/article/B6V84-50X2N9T-2/2/d5fefbde0a5e38f25c41f9225c4b6ec2
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 109 (2010)
Issue (Month): 2 (November)
Pages: 108-111

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Handle: RePEc:eee:ecolet:v:109:y:2010:i:2:p:108-111
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Galizzi, Monica & Lang, Kevin, 1998. "Relative Wages, Wage Growth, and Quit Behavior," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 367-91, April.
  2. Gielen, Anne & van Ours, Jan C, 2006. "Why Do Worker-Firm Matches Dissolve?," CEPR Discussion Papers 5739, C.E.P.R. Discussion Papers.
  3. Anabela Carneiro & Pedro Portugal, 2003. "Wages and the Risk of Displacement," CEF.UP Working Papers 0308, Universidade do Porto, Faculdade de Economia do Porto.
  4. Shintaro Yamaguchi, 2006. "Job Search, Bargaining, and Wage Dynamics," ISER Discussion Paper 0658, Institute of Social and Economic Research, Osaka University.
  5. Garcia Perez, Jose Ignacio & Rebollo Sanz, Yolanda, 2005. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Labour Economics, Elsevier, vol. 12(4), pages 531-555, August.
  6. Joseph G. Altonji & Robert A. Shakotko, 1985. "Do Wages Rise With Job Seniority?," NBER Working Papers 1616, National Bureau of Economic Research, Inc.
  7. Gielen, A. C. & van Ours, J.C., 2005. "Age-specific Cyclical Effects in Job Reallocation and Labor Mobility," Discussion Paper 2005-86, Tilburg University, Center for Economic Research.
  8. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  9. Farber, Henry S., 1999. "Mobility and stability: The dynamics of job change in labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 37, pages 2439-2483 Elsevier.
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