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1 South East European Journal of Economics and Business

1 2010

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Wage Collective Bargaining and Employee Voluntary Quits: A Romanian Empirical Analysis

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Boboc C. , Calavrezo O.

South East European Journal of Economics and Business

2010

tom 5

nr 1

75-84

In this paper, we analyze Hirschman's "voice-exit" theory on the Romanian labour market. In other words, we study the relationship between wage collective bargaining and employee voluntary departures. We assess a kernel matching estimator on a recent Romanian survey of 783 firms. We highlight that, in Romania, before the integration to the European Union, wage collective bargaining implies a weakly significant increase in the probability of experiencing voluntary separations. This result is contrary to the relationship found in empirical studies implemented on developed countries.