Options to quit
This paper develops a theoretical model of a worker’s decision problem under uncertainty about the optimal separation time, when holding a representative outside offer but facing fixed costs of quitting. Implications of the model’s closed form solution are consistent with the quit behavior of workers from a large Dutch company.
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- Robert McDonald & Daniel Siegel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, Oxford University Press, vol. 101(4), pages 707-727.
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"Job Matching and the Theory of Turnover,"
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- Louis S. Jacobson & Robert J. LaLonde & Daniel Sullivan, 1992.
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92-11, W.E. Upjohn Institute for Employment Research.
- Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, volume 1, number 5474.
- Sherwin Rosen, 1972. "Learning and Experience in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 7(3), pages 326-342.
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