Quit behavior and the role of job protection

A.C. Gielen, K. Tatsiramos

Research output: Contribution to journalArticleAcademicpeer-review

4 Citations (Scopus)

Abstract

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, and those workers who quit receive higher wages compared to stayers. This evidence can be explained by increased mobility costs associated with higher expected risk of post-quit layoff and job mismatch. 

Original languageEnglish
Pages (from-to)624-632
Number of pages9
JournalLabour Economics
Volume19
Issue number4
DOIs
Publication statusPublished - Aug 2012

Keywords

  • Institutions
  • Employment protection
  • Labor mobility
  • Job satisfaction
  • Wages
  • FIRING RESTRICTIONS
  • EMPLOYMENT PROTECTION
  • FLOW DYNAMICS
  • LABOR DEMAND
  • INSTITUTIONS
  • SEARCH
  • EUROPE
  • UNEMPLOYMENT
  • SECURITY
  • WORKER

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