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* Corresponding author 1 PSE - Paris School of Economics 2 CES - Centre d-économie de la Sorbonne 3 CIRANO - Centre interuniversitaire de recherche en analyse des organisations 4 Université de Montréal - Département de Sciences Economique

Abstract : We test the wealth maximization theory of quitting behavior on the German Socioeconomic Panel 1985-2003. With the interpretation of job satisfaction as an expression of the experienced preference for the present job against available alternatives, the propensity to stay in the present job is simply related to the residual of a job satisfaction equation. We show that this residual is a better predictor of quits than the overall level of satisfaction. Furthermore, we validate a dynamic extension of the economic theory of quits for which uncertainty in the expectation of future events plays a decisive role.

Keywords : Voluntary quit job satisfaction surprises wealth maximization model

Author: Louis Lévy-Garboua - Claude Montmarquette - Véronique Simonnet -



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