In the aftermath of the pandemic there was much talk of a “great resignation” as people re- evaluated their lives. More columns were written about it than evidence that it was happening in the UK. Now, a great resignation is under way – of MPs. The number exiting ahead of polling day surpassed 1997’s exodus of 117, Michael Gove being the highest profile to stampede out.
Economists have an unusual take on quitting: it’s a good thing, indicating a strong economy with confident workers (though bad if one particular firm, or party, is haemorrhaging people).
What does economics tell us about this resignation rush? Those quitting probably found it harder to do than you might think. The “sunk cost fallacy” means people tend to stay because of the effort and time already put in to get to that point – even if the current costs outweigh the benefits.
Secondly, exits shouldn’t be surprising. Being an MP has been more stressful in recent years as British politics has gone bonkers and those with stressful roles are about 10% more likely to want to quit. Plus, the prospect of being in opposition for cabinet ministers not only means diminished status, but also diminished income (a £67,505 salary drop). That can result in feelings of unfairness, which drives the decision to quit.
Research brings good news for today’s quitters. Those changing jobs, on average, see their pay rise four times as fast as those staying put (note it can take a while to find the right new job: many move again soon to find a better fit). The best news? Those letting go, not just of a job but a goal that isn’t achievable (like running the country), can experience a boost in wellbeing. Quitting – it’s underrated.
• Torsten Bell is chief executive of the Resolution Foundation and author of Great Britain? How We Get Our Future Back, published on 13 June
