Employee Turnover: Less is Not Necessarily More?
Theoretical studies have suggested firm specific human capital and job matching as the major, but opposite, mechanisms through which employee turnover affects labour productivity. This study finds that the former dominates when turnover is high, while the latter dominates when turnover is low. The o...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Book Chapter |
| Language: | English |
| Published: |
Emerald Group Publishing
2006
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/81799 |
| _version_ | 1848764421503975424 |
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| author | Harris, Mark Tang, K. Tseng, Y.-P. |
| author2 | Baltagi, B |
| author_facet | Baltagi, B Harris, Mark Tang, K. Tseng, Y.-P. |
| author_sort | Harris, Mark |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Theoretical studies have suggested firm specific human capital and job matching as the major, but opposite, mechanisms through which employee turnover affects labour productivity. This study finds that the former dominates when turnover is high, while the latter dominates when turnover is low. The optimal turnover rate that maximises productivity is about 0.22 per annum. Bringing the observed turnover rates in the sample to the optimal level increases the average productivity by 1.1 per cent. The large gap between the observed and the optimal rate could be explained by the lack of decision coordination between agents in labour markets. |
| first_indexed | 2025-11-14T11:19:05Z |
| format | Book Chapter |
| id | curtin-20.500.11937-81799 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T11:19:05Z |
| publishDate | 2006 |
| publisher | Emerald Group Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-817992021-05-20T04:09:59Z Employee Turnover: Less is Not Necessarily More? Harris, Mark Tang, K. Tseng, Y.-P. Baltagi, B Business & Economics Theoretical studies have suggested firm specific human capital and job matching as the major, but opposite, mechanisms through which employee turnover affects labour productivity. This study finds that the former dominates when turnover is high, while the latter dominates when turnover is low. The optimal turnover rate that maximises productivity is about 0.22 per annum. Bringing the observed turnover rates in the sample to the optimal level increases the average productivity by 1.1 per cent. The large gap between the observed and the optimal rate could be explained by the lack of decision coordination between agents in labour markets. 2006 Book Chapter http://hdl.handle.net/20.500.11937/81799 10.1016/S0573-8555(06)74013-5 English Emerald Group Publishing restricted |
| spellingShingle | Business & Economics Harris, Mark Tang, K. Tseng, Y.-P. Employee Turnover: Less is Not Necessarily More? |
| title | Employee Turnover: Less is Not Necessarily More? |
| title_full | Employee Turnover: Less is Not Necessarily More? |
| title_fullStr | Employee Turnover: Less is Not Necessarily More? |
| title_full_unstemmed | Employee Turnover: Less is Not Necessarily More? |
| title_short | Employee Turnover: Less is Not Necessarily More? |
| title_sort | employee turnover: less is not necessarily more? |
| topic | Business & Economics |
| url | http://hdl.handle.net/20.500.11937/81799 |