1. THE EFFECT OF CHANGES IN QUITS AND HIRES ON THE LENGTH-OF-SERVICE COMPOSITION OF EMPLOYED WORKERS.
- Author
-
Stoikov, Vladimir
- Subjects
EMPLOYEE selection ,RESIGNATION of employees ,LABOR supply ,AGING ,EMPLOYEES - Abstract
The length-of-service composition of a firm's labor force is of considerable interest to the employer, not only as an index of labor force specific experience, but also as a good description of its age composition. The first part of the paper analyses the effect of independent changes in the hire rate, and in the quit rate, on the distribution of length-of-service. In particular, it is shown that a realistic reduction in the quit rate rotates the length-of-service distribution in favor of those with short seniority in the company. This effect, and the effect of changes in hire rates, are illustrated with particular length-of-service specific quit schedules and hire rates. Two examples of the recent literature on a firm's ability to retain its labor force are examined and found defective in their interpretation of the length-of-service distribution. The paper closes with some implications of the obtained results for the ageing of the employed labor force and a speculative proposition on the economic consequences for firms of a declining rate of expansion, summarized as the Necessity-to-Grow principle. [ABSTRACT FROM AUTHOR]
- Published
- 1971
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