Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/120945
Authors: 
Frederiksen, Anders
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9296
Abstract: 
In this paper, I study an employment situation where the employer and the employees cooperate about the implementation of a job satisfaction survey. Cooperation is valuable because it improves the firm's ability to predict employee quits, but it is only an equilibrium outcome because the employer-employee relation is repeated and long-term. Using a unique combination of firm-level data and information from job satisfaction surveys, the empirical analysis reveals that the cooperation reduces the firm's employee turnover costs significantly by improving its ability to predict quits. This cost reduction may easily exceed the cost of conducting the survey. The analysis also reveals that the firm is willing to sacrifice profits in a given year to be able to sustain the cooperative relationship with the employees.
Subjects: 
quits
job satisfaction
cooperation
retention
JEL: 
M5
Document Type: 
Working Paper

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