FURTHER INVESTIGATION INTO THE RELATIONSHIP BETWEEN QUIT RATES AND THE WAGE-TENURE PROFILE IN JAPANESE MANUFACTURING

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We examine the relationship between actual quit rates and the slope of wage-tenure profile. The results obtained clarify that there is a negative relationship between these series when we use the definition with monetary units. Conversely, the slope defined in terms of growth is found to be positively correlated with the quit rate. As the theory predicts a negative relationship between these variables, it seems reasonable to conclude from the results that the definition of the slope in monetary units is more appropriate.

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