This study uses data from a large panel of German establishments from 1997 until 2017 to investigate how employee turnover relates to organisational performance. Furthermore, resignation and dismissal are studied as components of total turnover and interacted with state-level unemployment. The results indicate that total turnover, resignation, and dismissal are all negatively related to performance, but the estimates are small. Moreover, resignation seems to be more harmful to organisational performance than dismissal. Unemployment interacts negatively with resignation and positively with dismissal, but the coefficients are weak and imprecise. This study is limited in terms of measurement and causal inference. Quasi-experimental approaches might prove fruitful in estimating the causal effect of turnover on performance.

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Thesis Advisor Kapoor, dr. S.V
Persistent URL
Series Financial Economics
Kraaij, A.C. (2020, January 14). Employee Turnover and Organisational Performance: Resignation, Dismissal, & Unemployment. Financial Economics. Retrieved from