IDEAS home Printed from https://ideas.repec.org/a/bla/labour/v33y2019i4p425-449.html
   My bibliography  Save this article

Should We Clash or Should I Go? The Impact of Low Wage and Poor Working Conditions on the Exit‐Voice Trade‐Off

Author

Listed:
  • Olivier Godechot
  • Zinaida Salibekyan

Abstract

We use two linked employer–employee datasets to adapt Hirschman's model of consumer behaviour into the labour market and to argue that dissatisfaction with pay should favour exit while dissatisfaction with working conditions should favour voice. A deterioration of our working conditions index increases the probability of participation in collective action when an increase in log hourly wage decreases the probability of quitting. A rationale for this trade‐off is based on information: first, information on the price of alternative options is more accessible than information on their quality; second, voice produces more information than exit and favours opportunities for specific improvements.

Suggested Citation

  • Olivier Godechot & Zinaida Salibekyan, 2019. "Should We Clash or Should I Go? The Impact of Low Wage and Poor Working Conditions on the Exit‐Voice Trade‐Off," LABOUR, CEIS, vol. 33(4), pages 425-449, December.
    • Handle: RePEc:bla:labour:v:33:y:2019:i:4:p:425-449
    DOI: 10.1111/labr.12155
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/labr.12155
    Download Restriction: no
    File URL: https://libkey.io/10.1111/labr.12155?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Carlos García‐Serrano, 2004. "Temporary Employment, Working Conditions and Expected Exits from Firms," LABOUR, CEIS, vol. 18(2), pages 293-316, June.
    2. Freeman, Richard B, 1978. "Job Satisfaction as an Economic Variable," American Economic Review, American Economic Association, vol. 68(2), pages 135-141, May.
    3. Richard B. Freeman, 1980. "The Exit-Voice Tradeoff in the Labor Market: Unionism, Job Tenure, Quits, and Separations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 643-673.
    4. Cottini, Elena & Kato, Takao & Westergaard-Nielsen, Niels, 2011. "Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer–employee data," Labour Economics, Elsevier, vol. 18(6), pages 872-880.
    5. Williamson, Oliver E, 1973. "Markets and Hierarchies: Some Elementary Considerations," American Economic Review, American Economic Association, vol. 63(2), pages 316-325, May.
    6. van Ophem, Hans, 1991. "Wages, Nonwage Job Characteristics and the Search Behavior of Employees," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 145-151, February.
    7. Kristensen, Nicolai & Westergård-Nielsen, Niels, 2006. "Job satisfaction and quits – Which job characteristics matters most?," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2006(1), pages 230-248.
    8. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(2), pages 129-130, November.
    9. Barry, Brian, 1974. "Review Article: ‘Exit, Voice, and Loyalty’," British Journal of Political Science, Cambridge University Press, vol. 4(1), pages 79-107, January.
    10. repec:bla:econom:v:69:y:2002:i:274:p:295-26 is not listed on IDEAS
    11. Böckerman, Petri & Bryson, Alex & Ilmakunnas, Pekka, 2012. "Does high involvement management improve worker wellbeing?," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 660-680.
    12. MacLeod, W Bentley & Malcomson, James M, 1993. "Investments, Holdup, and the Form of Market Contracts," American Economic Review, American Economic Association, vol. 83(4), pages 811-837, September.
    13. Alex Bryson & Paul Willman & Rafael Gomez & Tobias Kretschmer, 2013. "The Comparative Advantage of Non-Union Voice in B ritain, 1980–2004," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52, pages 194-220, January.
    14. Petri Böckerman & Alex Bryson & Pekka Ilmakunnas, 2013. "Does high involvement management lead to higher pay?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(4), pages 861-885, October.
    15. Freeman, Richard B, 1976. "Individual Mobility and Union Voice in the Labor Market," American Economic Review, American Economic Association, vol. 66(2), pages 361-368, May.
    16. Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
    17. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
    18. Lucie DAVOINE & Christine ERHEL & Mathilde GUERGOAT-LARIVIERE, 2008. "Monitoring quality in work: European Employment Strategy indicators and beyond," International Labour Review, International Labour Organization, vol. 147(2-3), pages 163-198, June.
    19. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 243-243, December.
    20. Richard B. Freeman, 1980. "The Exit-Voice Tradeoff in the Labor Market: Unionism, Job Tenure, Quits," NBER Working Papers 0242, National Bureau of Economic Research, Inc.
    21. Olivier Godechot & Marc Gurgand, 2000. "Quand les salariés jugent leur salaire," Économie et Statistique, Programme National Persée, vol. 331(1), pages 3-24.
    22. Thomas Amossé & Alex Bryson & John Forth & Héloïse Petit (ed.), 2016. "Comparative Workplace Employment Relations," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-57419-0.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ludivine Martin, 2020. "How to retain motivated employees in their jobs?," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 41(4), pages 910-953, November.
    2. Cottini, Elena & Kato, Takao & Westergaard-Nielsen, Niels, 2011. "Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer–employee data," Labour Economics, Elsevier, vol. 18(6), pages 872-880.
    3. Alex Bryson & Lucy Stokes & David Wilkinson, 2023. "Is pupil attainment higher in well-managed schools?," Education Economics, Taylor & Francis Journals, vol. 31(1), pages 129-144, January.
    4. White, Michael & Bryson, Alex, 2018. "HPWS in the Public Sector: Are There Mutual Gains?," IZA Discussion Papers 11965, Institute of Labor Economics (IZA).
    5. Barry, Michael & Bryson, Alex & Gomez, Rafael & Kaufman, Bruce E. & Lomas, Guenther & Wilkinson, Adrian, 2018. "The," IZA Discussion Papers 11860, Institute of Labor Economics (IZA).
    6. Godechot, Olivier & Salibekyan, Zinaida, 2013. "Should we clash or should we go? The impact of low wage and bad working conditions on the exit-voice trade-off," MaxPo Discussion Paper Series 13/3, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    7. Chiara Paola Donegani & Stephen McKay, 2012. "Is there a paradox of lower job satisfaction among trade union members? European evidence," Transfer: European Review of Labour and Research, , vol. 18(4), pages 471-489, November.
    8. Artz, Benjamin & Blanchflower, David G. & Bryson, Alex, 2022. "Unions increase job satisfaction in the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 173-188.
    9. Theodossiou, I. & Zangelidis, A., 2009. "Career prospects and tenure-job satisfaction profiles: Evidence from panel data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 648-657, August.
    10. Petri Böckerman & Alex Bryson & Antti Kauhanen & Mari Kangasniemi, 2020. "Does job design make workers happy?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 67(1), pages 31-52, February.
    11. Petri Böckerman & Pekka Ilmakunnas, 2004. "Job Disamenities, Job Satisfaction and on-the-Job Search: Is There a Nexus?," Working Papers 208, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    12. Petri Böckerman & Alex Bryson & Antti Kauhanen & Mari Kangasniemi, 2016. "Does Job Support Make Workers Happy?," DoQSS Working Papers 16-16, Quantitative Social Science - UCL Social Research Institute, University College London.
    13. Artz, Benjamin & Heywood, John S., 2020. "Unions, Worker Participation and Worker Well-Being," GLO Discussion Paper Series 705, Global Labor Organization (GLO).
    14. repec:zbw:bofrdp:2017_033 is not listed on IDEAS
    15. Michael Barry & Alex Bryson & Rafael Gomez & Bruce Kaufman & Guenther Lomas & Adrian Wilkinson, 2018. "The ''Good Workplace'': The Role of Joint Consultative Committees, Unions and HR policies in Employee Ratings of Workplaces in Britain," DoQSS Working Papers 18-08, Quantitative Social Science - UCL Social Research Institute, University College London.
    16. Benjamin Artz, 2012. "Does the Impact of Union Experience on Job Satisfaction Differ by Gender?," ILR Review, Cornell University, ILR School, vol. 65(2), pages 225-243, April.
    17. Jones, Derek C. & Kalmi, Panu & Kato, Takao & Mäkinen, Mikko, 2017. "Worker separation under performance pay : Empirical evidence from Finland," Research Discussion Papers 33/2017, Bank of Finland.
    18. Alex Bryson & Christine Erhel & Zinaida Salibekyan, 2021. "Perceptions of non-pecuniary job quality using linked employer–employee data," European Journal of Industrial Relations, , vol. 27(2), pages 113-129, June.
    19. Jirjahn Uwe & Tsertsvadze Georgi, 2006. "Betriebsräte und Arbeitszufriedenheit / Works Councils and Job Satisfaction," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(5), pages 537-561, October.
    20. Alex Bryson & Christine Erhel & Zinaïda Salibekyan, 2017. "The Effects of Firm Size on Job Quality: A Comparative Study for Britain and France," DoQSS Working Papers 17-08, Quantitative Social Science - UCL Social Research Institute, University College London.
    21. DEGUILHEM Thibaud & FRONTENAUD Adrien, 2016. "Quality of employment regimes and diversity of emerging countries," Cahiers du GREThA (2007-2019) 2016-03, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:labour:v:33:y:2019:i:4:p:425-449. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/csrotit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.