Factors affecting quits and layoffs in Spain

Antonio Caparrós Ruiz () and Mª. Lucía Navarro Gómez ()
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Antonio Caparrós Ruiz: Universidad de Málaga, http://www.uma.es
Mª. Lucía Navarro Gómez: Universidad de Málaga, http://www.uma.es

No E2002/16, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: During the last decade, unemployment rates in the European Union have been higher than in other regions, e.g., the United States, and these are even higher in Spain. It has been argued that the different degrees of labour mobility between the European and the American labour markets can account for the differences in the pattern observed. This paper follows the McLaughlin's model (1991) and provides empirical evidence regarding the factors determining quits and layoffs due to contract termination and non-renewal in Spain, following the efficient-turnover theory and wage flexibility. The data was obtained from the Spanish Household Panel Survey (PHOGUE) conducted by the Instituto Nacional de Estadística (INE 1995). Our evidence, on the one hand, indicates that workers' characteristics influence on the probability of changing job. On the other hand, the influency of the factors affecting labour mobility is different depending on whether job separation was triggered by quits or layoffs.

Keywords: quit; layoff; wage revision and bivariate probit. (search for similar items in EconPapers)
JEL-codes: J31 J63 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2002
New Economics Papers: this item is included in nep-dcm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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