Growing old together
Subtitle: firm survival and employee turnover
By: Erwan Quintin and John J. Stevens.
Contributors: Stevens, John J.
Series: Finance and economics discussion series ;; 2005-22; Finance and economics discussion series (Online) ;; 2005-22.
Publisher: Federal Reserve Board
Published: 2005
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "Labor market outcomes such as turnover and earnings are correlated with employer characteristics, even after controlling for observable differences in worker characteristics.  We argue that this systematic relationship constitutes strong evidence in favor of models where workers choose how much to invest in future productivity.  Because employer characteristics are correlated with firm survival, returns to these investments vary across firm types.  We describe a dynamic general equilibrium model where workers employed in firms more likely to survive choose to devote more time to productivity enhancing activities, and therefore have a steeper earnings-tenure profile.  Our model also predicts that quit rates should be lower in firms more likely to survive, and should tend to fall during slow times, while job destruction rates should rise.  These predictions, we argue, are borne out by the existing empirical evidence"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 5/20/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.