Why Are Quit Rates Lower Among Defense Contractors?

Abstract

This paper presents empirical evidence of lower quit rates at small manufacturers with defense contracts and examines whether this is associated with differences in their human resource policies and organizational practices and strategies. We take advantage of an original data set to compare labor quits, workforce skills, and occupational structure between defense-contracting and noncontracting small manufacturers in eastern Pennsylvania. We find that the remarkably large defense contractor advantage in quit rates-7 percentage points-is almost totally explained by differences in skills, operational strategies, and workforce management and training practices, suggesting a mediation effect through these HR practices. Defense-contracting status emerges as an important overlooked variable in HRM studies.

Expectations, Wage Hikes, and Worker Voice: Evidence from a Field Experiment

“…While indirect tests of Hirschman's theory, based on associations between measures of voice and firm outcomes, abound in the economics literature (see, e.g., Batt et al (2002); Beard et al (2009); Cottini et al (2011); Freeman (1980); Gans et al (2017); Watkins and Hyclak (2011)), to our knowledge there has been no rigorous direct test of the impacts of increased voice on worker turnover. 1 In this paper, we seek to provide this evidence via a randomized controlled trial in which we enabled greater voice for workers just after what proved to be a disappointing scheduled wage hike.…”

Expectations, Wage Hikes, and Worker Voice: Evidence from a Field Experiment

“…While indirect tests of Hirschman's theory, based on associations between measures of voice and firm outcomes, abound in the economics literature (see, e.g., Batt et al (2002); Beard et al (2009); Cottini et al (2011); Freeman (1980); Gans et al (2017); Watkins and Hyclak (2011)), to our knowledge there has been no rigorous direct test of the impacts of increased voice on worker turnover. 1 In this paper, we seek to provide this evidence via a randomized controlled trial in which we enabled greater voice for workers just after what proved to be a disappointing scheduled wage hike.…”

Expectations, Wage Hikes, and Worker Voice: Evidence from a Field Experiment

“…While indirect tests of Hirschman's theory, based on associations between measures of voice and firm outcomes, abound in the economics literature (see, e.g., Batt et al (2002); Beard et al (2009); Cottini et al (2011); Freeman (1980); Gans et al (2017); Watkins and Hyclak (2011)), to our knowledge there has been no rigorous direct test of the impacts of increased voice on worker turnover. 1 In this paper, we seek to provide this evidence via a randomized controlled trial in which we enabled greater voice for workers just after what proved to be a disappointing scheduled wage hike.…”