Quit Behavior and the Role of Job Protection
August 2012
Article
volume 19, issue 4 pp 624-632.
(Accepted manuscript)
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Job protection reduces job turnover by changing firms’ hiring and firing decisions. Yet the effect of job protection on workers’ quit decisions and post-quit outcomes is still unknown. We present the first evidence using individual panel data from 12 European countries, which differ both in worker turnover rates and in the level of job protection. We find that workers are less likely to quit their job in countries with more job protection, but conditional on quitting they receive higher wages. This evidence can be explained by increased mobility costs associated with higher expected risk of post-quit layoff and job mismatch.
Keywords
Automatically Extracted Terms
- job satisfaction
- effect
- country
- protection
- satisfaction
- job protection
- level
- worker
- employment protection
- ***
- employment
- mobility
- decision
- difference
- job security
- figure
- labor
- result
- 0.002
- job quality
