Quitting and labor turnover : microeconomic evidence and macroeconomic consequences

About

Countries

Data & Research

Learning

News

Projects & Operations

Publications

Topics

Home > Data & Research > Research > Author Profile > Report Details

Quitting and labor turnover : microeconomic evidence and macroeconomic consequences, Volume 1

Author:	Krebs, Tom; Maloney, William F.;	Collection Title:	Policy, Research working paper ; no. WPS 2068
Country:	Mexico;	Date Stored:	2000/02/24
Document Date:	1999/02/28	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	(Historic)Social Protection
Region:	Latin America & Caribbean	Report Number:	WPS2068
Sub Sectors:	Labor Markets & Employment	SubTopics:	Environmental Economics & Policies; Economic Theory & Research; Banks & Banking Reform; Labor Management and Relations; Health Monitoring & Evaluation; Labor Policies; Public Health Promotion
Volume No:	1

Summary: Combining microeconomic evidence with macroeconomic theory, the authors present an integrated approach to wage and employment determination in an economy where firms pay above market "efficiency wages" to prevent trained workers from quitting. The model offers predictions about the behavior of formal employment, labor turnover, and segmentation in response to formal sector productivity shocks (including economic growth and tax reductions), changes in the desirability of self-employment (formal sector tax rates), and the cost of training a new worker. They use panel data from Mexican labor surveys to estimate the quit function derived from the model and the results support their view that transitions from formal salaried work to informal self-employment are quits rather than fires. (Quitting is positively related to the mean self-employment income and the probability of being rehired and negatively related to the mean formal salaried wage.) They then use the parameters estimated from the quit function to calibrate the model economy and simulate the impacts of economic shocks and policy innovations and find the impact on employment, turnover, and segmentation to be substantial.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 44 pages	Official version*	3.08 (approx.)
	Text	Text version**


Light-Weight Documents Lighter (less MB) documents which may or may not be the final, official version
File Type		Description	File Size (mb)

	PDF 42 pages	WPS2068	0.12

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.

** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: http://go.worldbank.org/QT7N2LZ8A0