What Causes Labor Turnover To Vary?

Edward Lazear and Kristin McCue

No 24873, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Most turnover reflects churn, where hires replace departures. Churn varies substantially by employer, industry and worker characteristics. For example, leisure and hospitality turnover is more than double that of manufacturing. In the LEHD (QWI) data, permanent employer differences account for 36% of the variation in churn. The cost of churn is proxied by the mean wage and the benefit by the variance in wages. QWI and JOLTS data confirm predictions that high mean wage labor markets experience less churn and high wage-variance ones experience more churn. Additionally, less educated, younger and male workers have higher separation and churn rates.

JEL-codes: E24 J0 J6 J63 M50 M51 (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-hrm, nep-lab, nep-ltv and nep-mac
Note: EFG LS
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