Dube, Arindrajit; Giuliano, Laura; Leonard, Jonathan - 2015
We analyze how quits responded to arbitrary differences in own and peer wages using an unusual feature of a pay raise … within 1 cent of each other received new wages that differed by 10 cents. First, we estimate a regression discontinuity (RD …) model based on own wages; we find large causal effects of wages on quits, with quit elasticities less than -10. Next, we …