IDEAS home Printed from https://ideas.repec.org/a/ucp/jlabec/v16y1998i2p367-91.html
   My bibliography  Save this article

Relative Wages, Wage Growth, and Quit Behavior

Author

Listed:
  • Galizzi, Monica
  • Lang, Kevin

Abstract

Using Italian Social Security records for male workers from a sample of firms in Turin from 1981 to 1983, the authors show that, conditional on the worker's own wage, the average wage in the establishment for similar workers is negatively related to quits. They also find that this variable predicts future wage growth. This is consistent with an economic model in which workers compare the long-run value of employment opportunities when making quit decisions. Copyright 1998 by University of Chicago Press.

Suggested Citation

  • Galizzi, Monica & Lang, Kevin, 1998. "Relative Wages, Wage Growth, and Quit Behavior," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 367-391, April.
  • Handle: RePEc:ucp:jlabec:v:16:y:1998:i:2:p:367-91
    DOI: 10.1086/209893
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/209893
    File Function: full text
    Download Restriction: Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JOLE for details.

    File URL: https://libkey.io/10.1086/209893?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Viscusi, W Kip, 1979. "Job Hazards and Worker Quit Rates: An Analysis of Adaptive Worker Behavior," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(1), pages 29-58, February.
    2. Henry S. Farber & Robert Gibbons, 1996. "Learning and Wage Dynamics," The Quarterly Journal of Economics, Oxford University Press, vol. 111(4), pages 1007-1047.
    3. Kahn, Shulamit & Griesinger, Harriet, 1989. "Female Mobility and the Returns to Seniority: Should EEO Policy Be Concerned with Promotion?," American Economic Review, American Economic Association, vol. 79(2), pages 300-304, May.
    4. McLaughlin, Kenneth J, 1991. "A Theory of Quits and Layoffs with Efficient Turnover," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 1-29, February.
    5. Lucrezia Reichlin & Michele Salvati, 1990. "Industrial Employment in Italy: The Consequences of Shifts in Union Power in the 1970s and 1980s," International Economic Association Series, in: Renato Brunetta & Carlo Dell’Aringa (ed.), Labour Relations and Economic Performance, chapter 9, pages 229-254, Palgrave Macmillan.
    6. George A. Akerlof & Andrew K. Rose & Janet L. Yellen, 1988. "Job Switching and Job Satisfaction in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 495-594.
    7. Rosen, Sherwin, 2007. "Studies in Labor Markets," National Bureau of Economic Research Books, University of Chicago Press, number 9780226726304, October.
    8. Parsons, Donald O, 1991. "The Job Search Behavior of Employed Youth," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 597-604, November.
    9. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    10. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-176, February.
    11. Ann P. Bartel, 1982. "Wages, Nonwage Job Characteristics, and Labor Mobility," ILR Review, Cornell University, ILR School, vol. 35(4), pages 578-589, July.
    12. Glenn M. MacDonald, 1988. "Job Mobility in Market Equilibrium," Review of Economic Studies, Oxford University Press, vol. 55(1), pages 153-168.
    13. David Marsden, 1990. "Institutions and Labour Mobility: Occupational and Internal Labour Markets in Britain, France, Italy and West Germany," International Economic Association Series, in: Renato Brunetta & Carlo Dell’Aringa (ed.), Labour Relations and Economic Performance, chapter 17, pages 414-438, Palgrave Macmillan.
    14. Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-1260, December.
    15. Mortensen, Dale T, 1988. "Wages, Separations, and Job Tenure: On-the-Job Specific Training or Matching?," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 445-471, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Parent, Daniel, 2002. "Matching, human capital, and the covariance structure of earnings," Labour Economics, Elsevier, vol. 9(3), pages 375-404, July.
    2. I. Sebastian Buhai & Coen N. Teulings, 2014. "Tenure Profiles and Efficient Separation in a Stochastic Productivity Model," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 32(2), pages 245-258, April.
    3. Louis Lévy-Garboua & Claude Montmarquette & Véronique Simonnet, 2001. "Job Satisfaction and Quits: Theory and Evidence from the German Socioeconomic Panel," CIRANO Working Papers 2001s-41, CIRANO.
    4. repec:eee:labchp:v:3:y:1999:i:pb:p:2439-2483 is not listed on IDEAS
    5. repec:eee:labchp:v:3:y:1999:i:pb:p:2373-2437 is not listed on IDEAS
    6. Ferreira, Priscila, 2009. "Returns to job mobility: the role of observed and unobserved factors," ISER Working Paper Series 2009-12, Institute for Social and Economic Research.
    7. Joseph G. Altonji & Nicolas Williams, 1992. "The Effects of Labor Market Experience, Job Seniority, and Job Mobility on Wage Growth," NBER Working Papers 4133, National Bureau of Economic Research, Inc.
    8. Maria A. Davia, 2010. "Job Mobility And Wage Growth At The Beginning Of The Professional Career In Spain," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 18(1), pages 5-34, Spring.
    9. William J. Carrington & Bruce Fallick, 2014. "Why Do Earnings Fall with Job Displacement?," Working Papers (Old Series) 1405, Federal Reserve Bank of Cleveland.
    10. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
    11. Levy-Garboua, Louis & Montmarquette, Claude & Simonnet, Veronique, 2007. "Job satisfaction and quits," Labour Economics, Elsevier, vol. 14(2), pages 251-268, April.
    12. Alan Manning, 1998. "Mighty Good Thing: The Returns to Tenure," CEP Discussion Papers dp0383, Centre for Economic Performance, LSE.
    13. Munasinghe, Lalith & Sigman, Karl, 2004. "A hobo syndrome? Mobility, wages, and job turnover," Labour Economics, Elsevier, vol. 11(2), pages 191-218, April.
    14. William J. Carrington, 2015. "Do We Know Why Earnings Fall with Job Displacement? Working Paper: 2015-01," Working Papers 49908, Congressional Budget Office.
    15. Scoones, David, 2000. "Matching and competition for human capital," Labour Economics, Elsevier, vol. 7(2), pages 135-152, March.
    16. repec:eee:labchp:v:2:y:1986:i:c:p:849-919 is not listed on IDEAS
    17. Josse Delfgaauw, 2005. "Where to go? Workers' Reasons to quit and Intra- versus Interindustry Job Mobility," Tinbergen Institute Discussion Papers 05-027/1, Tinbergen Institute, revised 08 Aug 2005.
    18. Gérard Ballot & Yves Zénou, 1992. "Appariement et rotation de la main-d'oeuvre : une analyse théorique et économétrique sur données de panel," Économie et Prévision, Programme National Persée, vol. 102(1), pages 129-142.
    19. James A Schmitz & Thomas J Holmes, 1992. "Managerial Tenure, Business Age And Small Business Dynamics," Working Papers 92-11, Center for Economic Studies, U.S. Census Bureau.
    20. Panigo, Demian & Naticchioni, Paolo, 2004. "Employment protection, job-tenure and short term mobility wage gains," CEPREMAP Working Papers (Couverture Orange) 0402, CEPREMAP.
    21. Ghosh, Suman, 2007. "Job mobility and careers in firms," Labour Economics, Elsevier, vol. 14(3), pages 603-621, June.
    22. Jeremy T. Fox, 2010. "Estimating the Employer Switching Costs and Wage Responses of Forward-Looking Engineers," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 357-412, April.
    23. Henry S. Farber, 1992. "Evaluating Competing Theories of Worker Mobility," Working Papers 1992-1, Princeton University. Economics Department..

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:v:16:y:1998:i:2:p:367-91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JOLE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.