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.
|Date of creation:||Sep 2000|
|Date of revision:|
|Publication status:||published in: Economics Letters, 2001, 70 (2), 59-265|
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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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