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Journal of Labor Economics 2025

The Hidden Costs of Dismissal: Behavioral Consequences of Impending Termination

Jakob Alfitian1,2; Timo Vogelsang3

1 Max Planck Society · 2 Max Planck Institute for Behavioral Economics · 3 Frankfurt School of Finance & Management

open access

Abstract

This study investigates the impact of impending termination on employee behavior, using comprehensive data from 3,340 employees of a retail chain.Employees who were dismissed exhibit a sharp increase in absenteeism around the time they were given notice.In contrast, employees who resigned show only a moderate increase in absenteeism toward the end of their employment relationship, which is, however, not particularly pronounced around the time they gave notice.The conclusion of a mutual termination agreement between the employer and the employee even tends to be followed by a decrease in absenteeism.

DOI
10.1086/737997
Language
en
Sources
semanticscholar openalex crossref

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