FREE-RIDERS and
TURNOVER
Jun Kobayashi (Chicago)
Naoko Taniguchi (Teikyo, Michigan)
Hirokuni Ooura (Teikyo)
August 18, 2004
ASA Mini Conference, SF
OVERVIEW
Free-riders and Turnover
“Free-riding and Mobility” Project
Survey on Japanese White-collar
workers, N=810
Free-riders and Cooperators in Job
Change, Income, Satisfaction
QUESTION
Effects of FREE-RIDING on
of JOB CHANGE???
FR=“Less Efforts than Expected”
Cooperator=“Provide Enough Efforts”
No Free-riders Assumed
Mutual Cooperation, Monitoring
LITERATURE
Empirical Studies on FR (’92-):
No “Job Change” variable
Takahashi (1997):
Motivated -> LOW Willingness
Cooperators -> Job Change↓???
We Challenge this Prediction
HYPOTHESES
Rational to “Free-ride” and “STAY”
Koyama + Ooura + Kobayashi:
Cooperators can gain by “EXITING”
H1 Cooperators CHANGE Jobs More
H2 More WILLING to Change Jobs
H3 EARN More
H4 More SATISFIED
JAPANESE WORKERS
67M Workers (130M)
41% Females
84% Employed
Blue 38%, White 49, Service 11
Focus
Primary 5%, 2nd 30, Tertiary 65
Introduction
Data
Result
SURVEY
“Job Change and Work Attitudes”
March 2004, in Japan
White-collar, Full-time workers
Males, Age 30-49
N=810
Self-report, 74 questions, 5 points
SAMPLING
On Internet, Marketing company
(1) Registered 14,000
-> (2) 1,600 Randomly
-> (3) First 810
Receive 250 yens ($2)
DEPENDENT VARIABLES
Job Change Experience/Willingness
Binary Logistic Regressions
Covariance Structure Analyses
INCOME Increase, SATISFACTION
Compare Current and Previous Jobs
“5 years ago” if NO Change
INDEPENDENT VARIABLES
Latent Variables from 5 Point-scales
“FREE-RIDING” (α=.51)
Do Less than Fair Share
Save Efforts if Others Work Hard
Not Educate Juniors
“PUNITIVE” (α=.53)
Hate Betrayers
“Eye for Eye” is Reasonable
Try to Exclude Lazy Coworkers
CONTROL VARIABLES
“MOTIVATION” (α=.68)
Try to Improve Skills
Confident in Ability
Long-term Work Plans
“COMMITMENT” (α=.66)
Loyalty to Organization
Solidarity with Coworkers
Group Benefits over Personal
Introduction
Data
Result
JOB CHANGE
600
600
400
400
200
200
0
0
No
Experience
(41.1%)
N=810
No
Willing
(61.5%)
FREE-RIDING, PUNITIVE
300
300
200
200
100
100
0
0
-2 -1.5 -1 -0.5
0
0.5
1
1.5
N=810
Skewness=.184
2
2.5
-2 -1.5 -1 -0.5
= -.408
0
0.5
1
y = JOB CHANGE
Binary Logistic Regression (N=810)
Coefficients
College dummy
-.678***
Previous Income
-.326***
FREE-RIDING
-.344**
PUNITIVE
.011
Motivations
.661***
Commitment
-.196*
Satisfaction (Evaluation)
.374***
Satisfaction (Income)
-.131†
Satisfaction (Future)
-.491***
Satisfaction (Manager)
-.294***
Cox/Snell R2, Correct %
.177, 70.2%
COVARIANCE STRUCTURE
College
Free-rider
Punitive
+
-Job Change
Motivation
Commit
GFI=.670
AIC=19,813
N=769
Income
+ S: Evaluation
+
-
S: Income
S: Future
S: Manager
y = WILLINGNESS
Binary Logistic Regression (N=810)
Coefficients
Job Change dummy
College dummy
Work Years
.592**
-.302
-.060***
FREE-RIDING
PUNITIVE
Motivations
Commitment
.004
.087†
.710***
-.652***
Satisfaction (Evaluation)
Satisfaction (Promotion)
Cox/Snell R2, Correct %
-.359***
-.311**
.247, 73.1%
COVARIANCE STRUCTURE
Job Change
Free-rider
-
+
-
Punitive
Motivation
+†
+
Commit
Work Years
Willingness
GFI=.604
AIC=4,837
N=769
- S: Evaluation
S: Promotion
INCOME INCREASE
Among those who MOVED
>
Cooperators
Free-riders
Income Increase N
¥290.5K ($2,500) 184
¥ 11.9K ($ 100) 137
Those who STAYED
¥298.7K ($2,500)
¥261.5K ($2,100)
>
Cooperators
Free-riders
NO Significant Difference
203
255
SATISFACTION
Those who MOVED
>
Cooperators
Free-riders
Satisfaction (5 points) N
3.19
190
3.17
143
Those who STAYED
3.00
**
2.75
>
Cooperators
Free-riders
211
266
Difference among those who Stayed
TEST RESULTS
H1 More JOB CHANGE
Supported
Significant
H2 More WILLINGNESS
Not
H3 More INCOME INCREASE Supported
H4 More SATISFACTION
Supported
SUMMARY
Free-riding and Job Change
Cooperative workers MOVE more
Punitive workers WANT to MOVE
Cooperators increase INCOME and
SATISFACTION than Free-riders
THE BIG PICTURE
Org. Equilibrium Theory...
Participation and Contribution
If Rational to EXIT, Why STAY?
WHO Free-rides?
Compare w/ Simulation, Experiment,
Organizational Survey