While Bureau of Labor Statistics data reveal that U.S. employers laid off over 33 million employees since 1994, virtually no research has addressed the behavior of layoff victims upon reemployment. In a first step, we investigate how layoffs shape voluntary turnover behavior in subsequent jobs. Utilizing a recently developed fixed effects specification of survival analysis, we find that a layoff history is positively associated with quit behavior. This effect is partially mediated by underemployment and job satisfaction in the post-layoff job. The remaining indirect effect is consistent with the notion that layoffs produce a psychological spillover to postlayoff employment, which then manifests in quit behavior.We also find that layoff effects on turnover attenuate as an individual's layoffs accumulate and vary in magnitude according to the turnover "path" followed by the leaver. While Bureau of Labor Statistics data reveal that U.S. employers laid off over 33 million employees since 1994, virtually no research has addressed the behavior of layoff victims upon reemployment. In a first step, we investigate how layoffs shape voluntary turnover behavior in subsequent jobs. Utilizing a recently developed fixed effects specification of survival analysis, we find that a layoff history is positively associated with quit behavior. This effect is partially mediated by underemployment and job satisfaction in the post-layoff job. The remaining indirect effect is consistent with the notion that layoffs produce a psychological spillover to post-layoff employment, which then manifests in quit behavior. We also find that layoff effects on turnover attenuate as an individual's layoffs accumulate and vary in magnitude according to the turnover "path" followed by the leaver.Individual Layoff History and Voluntary Turnover !
3Creating a More Quit-Friendly National Workforce? Individual Layoff
History and Voluntary TurnoverOne of the standard mechanisms through which today's companies attempt to cope with competitive pressures is through downsizing (Cascio, 1993). The extent to and manner in which downsizing contributes to subsequent organizational performance is a complex issue, with scholars offering explanations for both positive (e.g., Love & Nohria, 2005) and negative downsizing effects (e.g., Trevor & Nyberg, 2008). What there is no dispute about, however, is the prevalence of downsizing in the U.S.-the Bureau of Labor Statistics reports over 30 million layoffs between 1994 and 2010, a figure that does not include small-scale layoffs (i.e., those displacing fewer than 50 employees). While layoffs are more numerous when firms are struggling economically (Cascio, 1993), company financial health, employee tenure, job performance, and industry all fail to protect American employees from the layoff axe (Cascio, 2002).Often lost in the analysis of layoffs and their effects on the companies that initiate them is that a majority of layoff victims ultimately find new jobs. In the aggregate, these millions of victims therefore ...