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Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer-employee data
Authors:Elena Cottini  Takao Kato  Niels Westergaard-Nielsen
Institution:
  • a Università Cattolica of Milan, Italy
  • b Centre for Corporate Performance, Aarhus School of Business, Denmark
  • c Economics, Colgate University, United States
  • d IZA Bonn, Germany
  • e Center on Japanese Economy and Business, Columbia Business School, United States
  • f Tokyo Center for Economic Research, Japan
  • g Aarhus School of Business, Aarhus University, Denmark
  • Abstract:Using Danish linked employer-employee data, we find that: (i) exposing the worker to physical hazards leads to a 3 percentage point increase in the probability of voluntary turnover from the average rate of 18%; (ii) working in night shift results in an 11-percentage point hike; and (iii) having an unsupportive boss leads to a 6-percentage point jump. High involvement work practices are found to play a significant role in mitigating the adverse effects of workplace hazards. Finally, the worker under adverse workplace conditions is found to improve the 5-year odds of rectifying such workplace adversities by quitting the firm.
    Keywords:M5  J63  J81  J28  J5
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