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The dynamics of job separation: The case of federal employees
Author(s) -
Black Matthew,
Moffitt Robert,
Warner John T.
Publication year - 1990
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950050304
Subject(s) - sample (material) , government (linguistics) , compensation (psychology) , economics , panel data , labour economics , econometrics , separation (statistics) , selection (genetic algorithm) , federal state , demographic economics , statistics , computer science , mathematics , psychology , philosophy , chemistry , linguistics , chromatography , artificial intelligence , psychoanalysis , economic policy
In this paper we develop a model of workers' quit decisions . Using panel data on a sample of US Federal government employees we use maximum‐likelihood techniques to determine how much of the observed decline in quits with job tenure is a result of declining individual quit propensities (‘state dependence’) rather than dynamic sample self‐selection (‘heterogeneity’). The latter is found to be much more important than the former. The effects of relative Federal government wages and other variables on quits are also estimated. The results are useful for analysing Federal compensation policies.