Bartel, Ann P.
Borjas, George J.
Middle-Age Job Mobility: Its Determinants and Consequences
Working Paper, Columbia University Graduate School of Business, 1976
Cohort(s): Older Men
Publisher: Columbia University Graduate School of Business
Keyword(s): Job Satisfaction; Job Tenure; Layoffs; Mobility; Mobility, Job; Pensions; Quits; Wages; Wages, Reservation; Wives, Work;

Permission to reprint the abstract has not been received from the publisher.

The authors examine the determinants of quits and argue that there are basically three types of quit occurrences: 1. due to exogenous or personal factors; 2. because of dissatisfaction with the current job; 3. due to a better job. In keeping with this system, it is found that the probability of quitting for job-related reasons is negatively related to the reservation wage. The probability of quitting for personal reasons is not related to the reservation wage since this type of quit is due to exogenous forces. The probability of a layoff was positively related to the individual's current wage. It is also found that job characteristics such as pension plans and hours of work affected job-related quits but did not determine quitting for personal reasons. Similarly, personal characteristics such as time remaining in the labor force and the wife's labor force status had systematic effects on job-related quits and insignificant effects on exogenous quits. There is also strong evidence of serial correlation in job mobility. That is, there exists a group of individuals who continuously show high propensities to separate both voluntarily and involuntarily. The analysis of the consequences of job mobility indicated the need to distinguish between types of quits. That is, individuals who were pulled from their jobs had higher immediate wage gains than stayers, while individuals who were pushed had smaller wage gains than stayers.