Economics Seminar Series: Laura Pohlan - Performance Feedback and Quit Behavior: Empirical Evidence from Linked Employer-Employee Data

You are invited to a Seminar by Laura Pohlan from the Institute for Employment Research, Nuremberg on “Performance Feedback and Quit Behavior: Empirical Evidence from Linked Employer-Employee Data

Register here to attend.

Abstract: 

In this paper, we study the job search behavior of employees in dependence of their relative performance in a setting with asymmetric information. We expect that an employee trades internal versus external career chances and then decides whether to search externally or not. The expected promotion probability depends on the relative position in the productivity distribution among competing employees within the firm. Performance feedback may reveal important information about the relative rank and thus improve the prediction of internal but also of external career prospects. Feedback about the relative performance can affect job search behavior differently in dependence of the relative rank. In line with these considerations, empirical evidence based on panel employer-employee data shows that employees performing below median decrease their turnover intention after the implementation of performance feedback. We find no effect for employees performing above median.

All are welcome to attend.