Young workers and quit behaviour

Abstract

A model is set up to explain the quit behaviour of new entrants to the labour market. It uses an incentive-opportunity approach to integrate existing relevant arguments from search and information theory and human capital analysis. It also provides for impetuous quits. The model is tested by an examination of a disaggregated data set concerning a single cohort of 16-year-old school-leavers in the first year after gaining full-time work. The theory received strong support. For example, in the main model, seven out of the ten coefficients were highly significant. Interestingly, even in a time of deepening recession, the existence of the job-shopper seemed to be apparent.