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Human capital depreciation during hometime

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Author Info

  • Dennis Görlich
  • Andries de Grip

Abstract

We estimate human capital depreciation rates during career interruptions due to family reasons (parental leave and household time) in male- and female-dominated occupations. If human capital depreciation due to family related career breaks is lower in female than in male occupations, this can explain occupational sex segregation because women will take the costs of future breaks into account when optimizing their lifetime earnings. We find that short-run depreciation rates in high-skilled occupations are significantly lower in female than in male occupations. In low-skilled occupations, there is no evidence of this difference. Our findings support the self-selection hypothesis with respect to occupational sex segregation in the more skilled jobs, i.e. high-skilled women might deliberately choose female occupations because of the lower short-term wage penalties for family-related career interruptions. Copyright 2009 , Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/oep/gpn044
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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 61 (2009)
Issue (Month): suppl_1 (April)
Pages: i98-i121

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Handle: RePEc:oup:oxecpp:v:61:y:2009:i:suppl_1:p:i98-i121

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Cited by:
  1. Peggy Bechara, 2012. "Gender Segregation and Gender Wage Differences during the Early Labour Market Career," Ruhr Economic Papers 0352, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Francine D. Blau & Lawrence M. Kahn, 2011. "The Feasibility and Importance of Adding Measures of Actual Experience to Cross-Sectional Data Collection," NBER Working Papers 17241, National Bureau of Economic Research, Inc.
  3. Potrafke, Niklas, 2012. "Unemployment, human capital depreciation and pension benefits: an empirical evaluation of German data," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(02), pages 223-241, April.
  4. Ben Ost, 2014. "How Do Teachers Improve? The Relative Importance of Specific and General Human Capital," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 127-51, April.

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