Should We Clash or Should I Go? The Impact of Low Wage and Poor Working Conditions on the Exit-Voice Trade-Off

Olivier Godechot and Zinaida Salibekyan ()
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Zinaida Salibekyan: CEET - Centre d'études de l'emploi et du travail - CNAM - Conservatoire National des Arts et Métiers [CNAM] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé

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Abstract: We use two linked employer–employee datasets to adapt Hirschman's model of consumer behaviour into the labour market and to argue that dissatisfaction with pay should favour exit while dissatisfaction with working conditions should favour voice. A deterioration of our working conditions index increases the probability of participation in collective action when an increase in log hourly wage decreases the probability of quitting. A rationale for this trade‐off is based on information: first, information on the price of alternative options is more accessible than information on their quality; second, voice produces more information than exit and favours opportunities for specific improvements.

Keywords: Working conditions; Wages; Albert O. Hirschman (search for similar items in EconPapers)
Date: 2019
Note: View the original document on HAL open archive server: https://hal.science/hal-03098558
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Published in LABOUR, 2019, 33 (4), pp.425-449. ⟨10.1111/labr.12155⟩

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Journal Article: Should We Clash or Should I Go? The Impact of Low Wage and Poor Working Conditions on the Exit‐Voice Trade‐Off (2019)
Working Paper: Should We Clash or Should I Go? The Impact of Low Wage and Poor Working Conditions on the Exit-Voice Trade-Off (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03098558

DOI: 10.1111/labr.12155

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