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An Information-Theoretic Approach to Job Quits

Abstract

This study analyzes the existence of quits as part of optimal job-shopping strategies by imperfectly informed workers. Formally this is modeled as a sequential decision problem in which jobs are assumed to be described by more than a single parameter. These multiple characteristics vary in their respective degrees of observability. Along with a characterization of the optimal strategy and a proof of the existence of a positive quit rate, comparative statics results are obtained

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