Date of Original Version
Over the past several years, high unemployment and limited job mobility prospects have kept voluntary employee turnover statistics relatively low. In more favorable job markets, dissatisfied employees are likely to leave undesirable work situations and move on to what they perceive will be more satisfying work relationships. In tight labor markets, dissatisfied employees often find that they are unable to leave dissatisfying jobs. This paper explores two questions pertaining to retention of dissatisfied employees. What can we expect, in terms of turnover, when the job market becomes more favorable to job seekers and how do dissatisfied employees who remain with employers respond behaviorally while continuing to work in a dissatisfying work environment?