Good companies fire fewer people, not because people quit less

Companies that are more productive have fewer people leave their jobs. It turns out this is because they lay off fewer workers, not because their employees quit less often. This means that a company's productivity directly affects how likely its employees are to lose their jobs.

Everyone assumed that good companies kept their workers because people liked working there and didn't quit. This paper shows that good companies are simply better at avoiding layoffs. This means that a company's financial health directly translates into job security for its employees, especially when the economy slows down.