The Review of Economics and Statistics Vol. 70 No. 1 1988
Interrelated Quits: An Empirical Analysis of the Utility Maximizing Mobility Hypothesis
Abstract
This paper demonstrates how the circumstances of quitting a previous job affect the probability of a later voluntary job change. The theoretical section describes a model of expected-utility-maximizing job search and mobility. Although the inability to observe utilities associated with specific jobs precludes a direct test of the utility maximizing mobility hypothesis, a testable implication is derived in the context of a simple job search model. Utility maximization implies that workers who rely exclusively on employed search to find a new job are less likely to quit again. This theoretical implication is confirmed by the parameter estimates.
- DOI
- 10.2307/1928146
- Volume
- 70
- Issue
- 1
- Pages
- 17
- Sources
- crossref openalex