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For migrant workers, separation from their family members also inhibits their households' ability to consume.
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They focus on workers voluntarily leaving continuing firms to explain the positive relationship between worker separation rates and industry shutdown rates.
Campa and Goldberg (2001) show an impact of the real exchange rate on wages, which justifies this change from the previous worker separation analysis.
This may fail to capture gender differences in worker separation decisions, especially if layoffs occur at high rates relative to quits.
Failure to distinguish the two potentially biases elasticity estimates toward zero and may fail to capture gender differences in worker separation decisions.
Such a reform replaces existing, conditional severance pay with unconditional, regular payments to all workers that are deposited directly to their individual accounts and are accessible in the event of a worker separation (introducing pure UISAs).
Our study is similar to Quintin and Stevens (2005a); Quintin and Stevens (2005b), who investigate the impact of industry exit rates on firm-worker separation rates using cross-sectional French data.
The data used in Quintin and Stevens (2005a); Quintin and Stevens (2005b) only identifies worker separations with no classification on type of separation.
Due to these data limitations, Quintin and Stevens (2005a); Quintin and Stevens (2005b) focus on explanations for worker separations related to the workers choice to leave the firm.
I use non-linear decomposition methods to analyze the role that wage plays relative to other factors in worker separations and how this differs across gender.
Therefore, models of worker turnover must capture both workers choosing to quit firms and firms choosing to lay off workers when investigating worker separations in the context of industry fluctuations.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com