%0 Report
        %A Siebert, W. Stanley
%A Zubanov, Nick
%A Chevalier, Arnaud
%A Viitanen, Tarja
        %T Labour Turnover and Labour Productivity in a Retail Organization
        %D 2006
        %8 2006 Sep
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 2322
        %U https://www.iza.org/publications/dp2322
        %X We study the impact of labour turnover on labour productivity using a panel dataset of 347 shops belonging to a large UK clothing retailer over1995-1999. For the within-shop link – holding constant the shop’s permanent characteristics – we observe an inverted U-shape effect of labour turnover on productivity. The productivity-maximizing rates of FTE-adjusted quits and hires are each about 20% per year, improving productivity by 2.5% compared to the zero turnover level. We explain the difference between this optimal level of labour turnover and its observed average (quits and hires each around 10%) through the costs of hiring estimated at about £600 per hire. By contrast, between shops, there is a positive link between average rates of turnover and average productivity, suggesting that an unobservable management quality factor generates both high turnover and productivity, which we discuss. 
        %K matched employee-firm panel data
%K retailing
%K labour turnover
%K labour productivity