Interrelated Quits: An Empirical Analysis of the Utility Maximizing Mobility Hypothesis

John J Antel

The Review of Economics and Statistics, 1988, vol. 70, issue 1, 17-22

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. Copyright 1988 by MIT Press.

Date: 1988
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