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.
(This abstract was borrowed from another version of this item.)
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3137-90., Massachusetts Institute of Technology (MIT), Sloan School of Management.
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NBER Working Papers
0864, National Bureau of Economic Research, Inc.
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- Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, issue Nov, pages 2-20.
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- Gray, Jo Anna, 1978. "On Indexation and Contract Length," Journal of Political Economy, University of Chicago Press, vol. 86(1), pages 1-18, February.
- Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-60, December.
- John T. Addison & Pedro Portugal, 1987. "The Effect of Advance Notification of Plant Closings on Unemployment," ILR Review, Cornell University, ILR School, vol. 41(1), pages 3-16, October.
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