indicate that the separation rate is decreasing in the difference between opportunities within and outside the incumbent firm.
The empirical problem in testing this implication of the theory arises because the data (KHPS-Korean household Panel Study) used in this research consist of data for only 4 years. In fact, four years is not enough time to see this data as the panel data.
And another problem is that I used the proxy instead of experience because of data problem.
I used age-education-8 instead of experience because there was no information about experience in the KHPS.
And the way I divided separations into layoffs and quits according to wage growth could be a problem, because there might be a number of other reasons that cause layoffs and quits besides wage growth.
Job search period can be another factor to divide separation, but I didin't deal with it inthis paper.
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