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

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Godechot,  Olivier
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo), Max Planck Society;
Assoziierte Wissenschaftlerinnen und Wissenschaftler, MPI for the Study of Societies, Max Planck Society;

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Zitation

Godechot, O., & Salibekyan, Z. (2013). Should We Clash or Should I Go? The Impact of Low Wage and Bad Working Conditions on the Exit–Voice Trade-off. MaxPo Discussion Paper, 13/3.


Zitierlink: https://hdl.handle.net/11858/00-001M-0000-0014-A720-1
Zusammenfassung
Although Hirschman’s exit–voice theoretical model has been applied to labor markets,
research up to now has not tested one of its most important features: the impact of job
quality on exit–voice strategies. Hirschman’s model of consumer behavior explains that
those individuals unsatisfied with a product’s quality are more likely to “voice,” whereas
those more concerned with its price are more likely to “exit.” A rationale for this tradeoff
is based on information: first, information on the price of alternative options is
much more accessible than information on quality; second, voice produces more information
than exit and favors opportunities for specific improvements. We transpose
Hirschman’s assumptions to labor markets and use the French SalSa survey and DADS,
declaration by employers on social data, to examine the conditions under which French
employees are more likely to exit, and the conditions under which they are more likely
to voice. Our results support the Hirschmanian hypothesis. A deterioration by one unit
in our working-conditions index increases the probability of participation in collective
action by 5 percentage points. An increase in log hourly wage by one unit decreases the probability of quitting by 5 percentage points.