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Causal effects of subsidized career breaks Author info | Abstract | Publisher info | Download info | Related research | Statistics Nordström Skans, Oskar () (IFAU - Institute for Labour Market Policy Evaluation)
Lindqvist, Linus () (IFAU - Insitute for Labour Market Policy Evaluation)
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The paper uses a quasi-experimental situation to analyze the effects of career interruptions on future labor market outcomes. Data are generated by a Swedish program that granted career breaks to applicants until funds where exhausted. Comparing approved and declined (due to lack of funds) applications allows us to derive “pure” effects of interrupted career that are not confounded by selection or omitted variables. The results show no significant effects on working hours but give some support for increased retirement probabilities among the oldest workers. The average wage effect is negative and in the order of 3 percent 1–2 years after the break. Further evidence suggests that one reason for the large negative wage effects may be related to changes in jobs and tasks.
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Paper provided by IFAU - Institute for Labour Market Policy Evaluation in its series Working Paper Series with number
2005:17.
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Length: 40 pages
Date of creation: 30 Jun 2005Date of revision:
Handle: RePEc:hhs:ifauwp:2005_017Contact details of provider: Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden Phone: (+46) 18 - 471 70 70 Fax: (+46) 18 - 471 70 71 Email: Web page: http://www.ifau.se/ More information through EDIRC
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Keywords: Career interruptions ; labor supply ; wages ; natural experiment ; Other versions of this item:
Find related papers by JEL classification: J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Hägglund, Pathric, 2006.
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Larsson, Laura & Lindqvist, Linus & Nordström Skans, Oskar, 2005.
"Stepping-stones or dead-ends? An analysis of Swedish replacement contracts ,"
Working Paper Series
2005:18, IFAU - Institute for Labour Market Policy Evaluation.
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Bertil Holmlund & Qian Liu & Oskar Nordström Skans, 2006.
"Mind the Gap? Estimating the Effects of Postponing Higher Education ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
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Other versions:
Holmlund, Bertil & Liu, Qian & Nordström Skans, Oskar, 2006.
"Mind the Gap? Estimating the Effects of Postponing Higher Education ,"
Working Paper Series
2006:17, Uppsala University, Department of Economics.
[Downloadable!] Holmlund, Bertil & Liu, Qian & Nordström Skans, Oskar, 2006.
"Mind the gap? Estimating the effects of postponing higher education ,"
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