Worker Turnover in the 1920s: The Role of Changing Employment Policies

Laura J Owen

Industrial and Corporate Change, 1995, vol. 4, issue 3, 499-530

Abstract: This paper examines the decline in turnover of manufacturing workers during the 1920s as a response to new employment policies which increased workers' cost of voluntary (and involuntary) separation. Case studies of four firms are used to illustrate that the incentives to change employment procedures were the reduction of costly labor turnover and the motivation of worker effort. Firms' new employment practices reduced labor turnover through the direct effect on their workers and the equilibrium effect on the aggregate labor market. Copyright 1995 by Oxford University Press.

Date: 1995
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