The Effect of Relative Wages and External Shocks on Public Sector Turnover

Bradley, Steve and Green, Colin and Mangan, John (2012) The Effect of Relative Wages and External Shocks on Public Sector Turnover. Economic Record, 88 (281). pp. 243-261. ISSN 1475-4932

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Abstract

We use a unique database to investigate the determinants of quits and terminations amongst public servants where relative wages, job status and external shocks are used as explanatory variables. It is shown that in comparison with others in the public sector, nurses and teachers on permanent contracts are more likely to quit. More generally, both relative wages and external shocks are found to be an important determinant of turnover behaviour. The public policy implications of these findings are discussed.