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

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  • Olivier Godechot

    (MaxPo - Max Planck Sciences Po Center on Coping with Instability in Market Societies - Max Planck Institute for the Study of Societies - Max-Planck-Gesellschaft - Sciences Po - Sciences Po, OSC - Observatoire sociologique du changement (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

  • Zinaida Salibekyan

    (CEET - Centre d'études de l'emploi et du travail - CNAM - Conservatoire National des Arts et Métiers [CNAM] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé)

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," SciencePo Working papers Main hal-03098558, HAL.
    • Handle: RePEc:hal:spmain:hal-03098558
    DOI: 10.1111/labr.12155
    Note: View the original document on HAL open archive server: https://hal.science/hal-03098558
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    References listed on IDEAS

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