Some Canadian Evidence on the Quit/Lay-Off Distinction

Michael P Kidd ()

Canadian Journal of Economics, 1994, vol. 27, issue 3, pages 709-33

Abstract: The question of whether or not there exists a meaningful economic distinction between quits and layoffs has attracted considerable attention. This paper utilizes a recent test proposed by J. S. Cramer and G. Ridder (1991) to test formally whether quits and layoffs may legitimately be aggregated into a single undifferentiated job-mover category. The paper also estimates wage equations for job stayers, quits, and layoffs, corrected for the endogeneity of job mobility. The major results are that quits and lay-off cannot legitimately be pooled and correction for sample selection would appear to be important.

Date: 1994
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Related works:
Working Paper: Some Canadian Evidence on the Quit/Layoff Distinction (1991)
Working Paper: Some Canadian Evidence on the Quit/Lay-Off Distinction (1993)
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