IDEAS home Printed from https://ideas.repec.org/p/huj/dispap/dp431.html

Performance Sampling and Bimodal Duration Dependence

Author

Listed:
  • Jerker Denrell

  • Zur Shapira

Abstract

Performance sampling models of duration dependence in employee turnover and firm exit predict that hazard rates will initially be low, gradually rise to a maximum, and then fall. As we note in this paper, however, several empirical duration distributions have bimodal hazard rates. This paper shows that such bimodal hazard rates can be derived from existing models of performance sampling by small changes in the assumptions. In particular, bimodal hazard rates emerge if the mean or the variance of performances changes over time, which would occur if employees or firms face more challenging tasks over time. Using data on turnover in law firms, we show that the hazard rate predicted by these models fit data better than existing models.

Suggested Citation

  • Jerker Denrell & Zur Shapira, 2006. "Performance Sampling and Bimodal Duration Dependence," Discussion Paper Series dp431, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    • Handle: RePEc:huj:dispap:dp431
    as

    Download full text from publisher

    File URL: http://ratio.huji.ac.il/sites/default/files/publications/dp431.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. March, James G., 1988. "Variable risk preferences and adaptive aspirations," Journal of Economic Behavior & Organization, Elsevier, vol. 9(1), pages 5-24, January.
    2. Rosen, Sherwin, 2007. "Studies in Labor Markets," National Bureau of Economic Research Books, University of Chicago Press, number 9780226726304, September.
    3. repec:ucp:bknber:9780226726281 is not listed on IDEAS
    4. Stephen J. Spurr, 1990. "Sex Discrimination in the Legal Profession: A Study of Promotion," ILR Review, Cornell University, ILR School, vol. 43(4), pages 406-417, July.
    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. Jerker Denrell & Zur Shapira, 2006. "Performance Sampling and Bimodal Duration Dependence," Levine's Bibliography 321307000000000405, UCLA Department of Economics.
    2. Joy, Lois, 1998. "Why Are Women Underrepresented in Public School Administration? An Empirical Test of Promotion Discrimination," Economics of Education Review, Elsevier, vol. 17(2), pages 193-204, April.
    3. Zhen Li & Zai Liang, 2016. "Gender and job mobility among rural to urban temporary migrants in the Pearl River Delta in China," Urban Studies, Urban Studies Journal Limited, vol. 53(16), pages 3455-3471, December.
    4. Nachum Sicherman, 1996. "Gender Differences in Departures from a Large Firm," ILR Review, Cornell University, ILR School, vol. 49(3), pages 484-505, April.
    5. Ammermüller, Andreas & Zwick, Thomas & Boockmann, Bernhard & Maier, Michael, 2007. "Do hiring subsidies reduce unemployment among the elderly? Evidence from two natural experiments," ZEW Discussion Papers 07-001, ZEW - Leibniz Centre for European Economic Research.
    6. Hans Bruining & Ernst Verwaal & Mike Wright, 2013. "Private equity and entrepreneurial management in management buy-outs," Small Business Economics, Springer, vol. 40(3), pages 591-605, April.
    7. Giarda, Elena, 2013. "Persistency of financial distress amongst Italian households: Evidence from dynamic models for binary panel data," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3425-3434.
    8. Mario BENASSI & Matteo LANDONI & Francesco RENTOCCHINI, 2017. "University Management Practices and Academic Spin-offs," Departmental Working Papers 2017-11, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Taillandier, F. & Sauce, G. & Bonetto, R., 2009. "Risk-based investment trade-off related to building facility management," Reliability Engineering and System Safety, Elsevier, vol. 94(4), pages 785-795.
    10. Cassidy, Hugh & DeVaro, Jed & Kauhanen, Antti, 2016. "Promotion signaling, gender, and turnover: New theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PA), pages 140-166.
    11. Florian S. Peters & Alexander F. Wagner, 2014. "The Executive Turnover Risk Premium," Journal of Finance, American Finance Association, vol. 69(4), pages 1529-1563, August.
    12. 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.
    13. Isaac Marcelin & Daniel Brink & David Oluwatosin Fadiran & Hammed Adedeji Amusa, 2019. "Subsidized labour and firms: Investment, profitability, and leverage," WIDER Working Paper Series wp-2019-50, World Institute for Development Economic Research (UNU-WIDER).
    14. Elliott, Robert F. & Sandy, Robert, 1998. "Adam Smith may have been right after all: A new approach to the analysis of compensating differentials," Economics Letters, Elsevier, vol. 59(1), pages 127-131, April.
    15. Arellano, Manuel & Carrasco, Raquel, 2003. "Binary choice panel data models with predetermined variables," Journal of Econometrics, Elsevier, vol. 115(1), pages 125-157, July.
    16. Zuckerman, Ezra W. & Kim, Tai-Young & Ukanwa, Kalinda & James, von Rittmann, 2003. "Robust Identities or Non-Entities? Typecasting in the Feature Film Labor Market," Working papers 4291-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    17. Christophe J. Nordman & François Roubaud, 2009. "Reassessing the Gender Wage Gap in Madagascar: Does Labor Force Attachment Really Matter?," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 785-808, July.
    18. Christophe Muller & Christophe Nordman, 2004. "Which Human Capital Matters For Rich And Poor'S Wages: Evidence From Matched Worker-Firm Data From Tunisia," Working Papers. Serie AD 2004-28, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    19. Dang, Rey & Houanti, L'Hocine & Sahut, Jean-Michel & Simioni, Michel, 2021. "Do women on corporate boards influence corporate social performance? A control function approach," Finance Research Letters, Elsevier, vol. 39(C).
    20. Yariv Fadlon & Sophie Tripp, 2022. "The role of supervisor race and gender on promotion likelihood," Economics Bulletin, AccessEcon, vol. 42(3), pages 1280-1294.

    More about this item

    Keywords

    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:huj:dispap:dp431. 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: Michael Simkin (email available below). General contact details of provider: https://edirc.repec.org/data/crihuil.html .

    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.