Labour Turnover: Evidence from UK Establishments

نویسنده

  • Christopher Martin
چکیده

This paper examines labour turnover using data from a survey of establishments in the UK conducted in 1990-91. Our work differs from most of the existing literature by using micro-level on establishments, whereas existing evidence uses micro-level data on individuals, or industry-level or aggregate data. The average turnover rate in our sample is 12.7% which is comparable to evidence from other sources. Turnover is also highly diverse: 11% of establishments have turnover rates of 25% or higher while 2.5% have turnover rates of over 50%. At the other extreme, 10% of establishments have a turnover rate of 1% or less and 5% lost no workers at all. We find that the relative wage and the sex, manual and part-time composition of the workforce are important in explaining turnover. In addition we find that characteristics of the workplace, especially negotiations between managers and unions and the presence of works councils, have significant effects. We calculate the marginal impact of changes in our variables and show that they are large enough to explain the observed volatility of turnover in our sample. Finally, we present supporting evidence that we have estimated a true causal relationship.

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تاریخ انتشار 1998