Career interruption and subsequent earnings: a reexamination using Swedish data
1996 (English)Report (Other academic)
This paper reexamines the link between career interruptions and subsequent wages. Using a rich new Swedish dataset, we are able to disaggregate time out of work into several components. Regressing log wages on aggregate total time out leads to the standard result, i.e., a negative coefficient on time out. However, we find that different types of time out have different effects on wages and that these effects vary by gender. This casts doubt on the usual human capital depreciation interpretation that has been placed on the negative coefficient of total time out in the wage equation. We propose a simple signaling model as an alternative interpretation.
Place, publisher, year, edition, pages
Uppsala: Nationalekonomiska institutionen , 1996. , 26 p.
Working paper / Department of Economics, Uppsala University (Print), ISSN 0284-2904
IdentifiersURN: urn:nbn:se:uu:diva-2372ISBN: 99-2372209-0OAI: oai:DiVA.org:uu-2372DiVA: diva2:128633