Quit rate as a function of the residual wage, by metropolitan status
| Rural | Urban | |
|---|---|---|
| -1 | 0.242015 | 0.154744 |
| -0.9 | 0.214808 | 0.173839 |
| -0.8 | 0.237972 | 0.182601 |
| -0.7 | 0.199639 | 0.168376 |
| -0.6 | 0.208436 | 0.133023 |
| -0.5 | 0.162001 | 0.103246 |
| -0.4 | 0.118284 | 0.08876 |
| -0.3 | 0.082979 | 0.053878 |
| -0.2 | 0.044969 | 0.035062 |
| -0.1 | 0.026689 | 0.016978 |
| 0 | 0 | 0 |
| 0.1 | 0.009394 | -0.00955 |
| 0.2 | -0.01874 | -0.02469 |
| 0.3 | -0.00688 | -0.01801 |
| 0.4 | -0.00467 | -0.03175 |
| 0.5 | -0.03483 | -0.02793 |
| 0.6 | -0.01028 | -0.01809 |
| 0.7 | -0.01025 | -0.02254 |
| 0.8 | -0.0191 | -0.01772 |
| 0.9 | 0.031924 | -0.01815 |
| 1 | 0.005069 | -0.00123 |
Notes: Authors’ calculations using SIPP data from the 2004, 2008, and 2014 panels. Slope of each line for each group represents the quit elasticity, with steeper slopes representing a higher elasticity. Residual wage is the hourly wage adjusted for demographic characteristics, human capital, and survey year. The y-axis is the quit rate at each residual wage level relative to the quit rate at a residual wage of zero, or the average residual wage. Differences along axes are percent differences (e.g., a difference of 0.2 is a 20% difference).
Source: Authors’ analysis of Survey of Income and Program Participation (SIPP) data.