Costs of Quitting a Job
Economic theory predicts that when the costs of quitting one’s job are relatively low, mobility is more likely. This observation underlines the analysis of the rise in quit rates during periods of prosperity, and the effects of mobility costs can be seen when looking at residential location and job turnover. Industries with high concentrations of employment in urban areas, where a worker’s change of employer does not necessarily require investing in a change of residence, appear to have higher rates of job turnover than industries concentrated in nonmetropolitan areas do.
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