Quitting and Labor Turnover: Microeconomic Evidence and Macroeconomic Consequences*
نویسندگان
چکیده
This paper presents an integrated approach to wage and employment determination combining microeconomic evidence with macroeconomic theory. More specifically, we first develop an efficiency wage model with labor turnover and show that the worker’s decision problem gives rise to a quit-rate function. We then use microeconomic data to estimate this quit-rate function and to test the specification implied by economic theory. Finally, we incorporate the estimated quit-rate function into the macroeconomic model and use the calibrated model economy to evaluate the quantitative effects of changes in economic policy and other macroeconomic shocks. The microeconomic evidence we present supports the quitting view of labor turnover and the macroeconomic simulation results suggest that persistent macroeconomic shocks have a substantial impact on the wage rate, turnover rate, and employment.
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