“…His empirical work (1993,1995,1997), which used data from the Employment Opportunity Pilot Project, suggests that the absolute level of wages and change in wages both affect turnover rates negatively. Munasinghe (2006), using data from the National Longitudinal Surveys of Youth, came up with similar findings that underscore the importance of external wage offers and internal wage growth. Other empirical studies (Azfar and Danninger, 2001;Galizzi and Lang, 1998;Kim, 1999;Leonard, 1987;Levine, 1992;Powell, Montgomery and Cosgrave, 1994;Topel and Ward, 1992) have also supported the model's hypothesis of a negative relationship between labour turnover rates and wage levels along with wage changes or expectations about those changes, which we also test in the context of Mexico's maquilas.…”