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Repeated job quits: stepping stones or learning about quality?

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  • Gielen, A.C.

    (Macro, International & Labour Economics)

Abstract
Despite the fact that worker quits are often associated with wage gains and higher overall job satisfaction, many workers quit once again within one or two years after changing jobs initially. Such repeated job quit behavior may arise as a stepping stone to better quality jobs (Burdett, 1978) or as a response to unexpectedly low job quality (Jovanovic, 1979). This paper tests the validity of both explanations using data from the UK labor market in order to improve our understanding of job search behavior. Results from panel estimations of job quits and job satisfaction illustrate that the labor market is characterized by elements of both explanations. More specifically, a variance decomposition shows that the stepping stone model explains 80 percent of repeated job quit behavior; the remaining 20 percent is the result of learning about job quality. Hence, workers appear to need several job quits to find their most preferred job and multiple job quits serve as a stepping stone to more satisfaction at work.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Gielen, A.C., 2008. "Repeated job quits: stepping stones or learning about quality?," ROA Research Memorandum 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    • Handle: RePEc:unm:umaror:2008010
    DOI: 10.26481/umaror.2008010
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    3. Lixin Cai, 2015. "The dynamics of low pay employment in Australia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(7), pages 1095-1123, October.
    4. Clark, Andrew E. & D’Ambrosio, Conchita & Zhu, Rong, 2021. "Job quality and workplace gender diversity in Europe," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 420-432.
    5. Adrian Chadi & Clemens Hetschko, 2018. "The magic of the new: How job changes affect job satisfaction," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(1), pages 23-39, March.
    6. Andrew McGee & Peter McGee, 2024. "Whoever you want me to be: Personality and incentives," Economic Inquiry, Western Economic Association International, vol. 62(3), pages 1268-1291, July.
    7. Adrian Chadi & Clemens Hetschko, 2021. "How Job Changes Affect People's Lives — Evidence from Subjective Well‐Being Data," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 279-306, June.
    8. Eike Emrich & Christian Pierdzioch, 2016. "Volunteering, Match Quality, and Internet Use," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 136(2), pages 199-226.
    9. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    10. Luke Haywood, 2011. "Watch your Workers Win. Changing Job Demands and HRM Responses," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 22(1), pages 47-64.
    11. Nina Garthe & Hans Martin Hasselhorn, 2021. "The relationship between voluntary employer change and work ability among older workers: investigating the honeymoon-hangover effect," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-12, December.
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    13. Gaetano Lisi, 2018. "Job satisfaction, time allocation and labour supply," Working Papers 2018-04, Universita' di Cassino, Dipartimento di Economia e Giurisprudenza.
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    More about this item

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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