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Firm specific human capital vs. job matching: a new test

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  • Erwan Quintin
  • John J. Stevens

Abstract

We use a unique data set on employee turnover by industry in Arizona to test competing theories of turnover. We find that industries with lower establishment survival rates have more employee turnover, even after controlling for differences in the distribution of employee tenure. This result is consistent with a model of turnover where employees choose how much firm specific human capital to accumulate, but it is inconsistent with job matching models.

Suggested Citation

  • Erwan Quintin & John J. Stevens, 2003. "Firm specific human capital vs. job matching: a new test," Finance and Economics Discussion Series 2003-33, Board of Governors of the Federal Reserve System (U.S.).
  • Handle: RePEc:fip:fedgfe:2003-33
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    References listed on IDEAS

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    Cited by:

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