Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data
AbstractThis 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.
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Bibliographic InfoPaper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 1996:23.
Length: 26 pp.
Date of creation: 1996
Date of revision:
Publication status: Published in The Journal of Human Resources, 1999, pages 294-311.
Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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Other versions of this item:
- James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
- Albrecht, J & Edin, P-A & Sundstrom, M & Vroman, S-B, 1996. "Career Interruptions and Subsequent Earning : A Reexamination Using Swedish Data," Papers 1996-23, Uppsala - Working Paper Series.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-08-03 (All new papers)
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