TY  - RPRT
        AU  - Siebert, W. Stanley
AU  - Zubanov, Nick
AU  - Chevalier, Arnaud
AU  - Viitanen, Tarja
        TI  - Labour Turnover and Labour Productivity in a Retail Organization
        PY  - 2006/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2322
        UR  - https://www.iza.org/publications/dp2322
        AB  - 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. 
        KW  - matched employee-firm panel data
KW  - retailing
KW  - labour turnover
KW  - labour productivity
        ER  -