Investigating the Decline in Manufacturing Quit Rates
In contrast to previous studies, the research reported here finds that the quit rate in manufacturing has declined in recent decades. This trend is discernible not only for aggregate manufacturing, but also for 19 of 20 manufacturing industries. An increase in fixed costs of labor relative to wages has contributed to reduced mobility, inducing employers to raise the cost of quitting to employees. The impact on labor turnover of other factors, including unionism, a changing composition of employment in various industries, and labor legislation, is also investigated.
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