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Human capital depreciation during hometime

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  • 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.

Suggested Citation

  • Dennis Görlich & Andries de Grip, 2009. "Human capital depreciation during hometime," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages 98-121, April.
  • Handle: RePEc:oup:oxecpp:v:61:y:2009:i:suppl_1:p:i98-i121
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    1. Кирюшина М. А. & Рудаков В. Н., 2021. "Гендерные Различия В Заработной Плате Выпускников Вузов И Учреждений Спо На Начальном Этапе Карьеры," Вопросы образования // Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 172-198.
    2. 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(2), pages 223-241, April.
    3. Vera, Celia Patricia, 2018. "A structural approach to assessing retention policies in public schools," MPRA Paper 90657, University Library of Munich, Germany.
    4. Francine D. Blau & Lawrence M. Kahn, 2013. "The Feasibility and Importance of Adding Measures of Actual Experience to Cross-Sectional Data Collection," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 17-58.
    5. Margarita Kiryushina & Victor Rudakov, 2021. "The Gender Gap in Early-Career Wages of Universities' and Vocational Education Institutes' Graduates," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 172-198.
    6. Julie L. Hotchkiss & M. Melinda Pitts & Mary Beth Walker, 2017. "Impact of first birth career interruption on earnings: evidence from administrative data," Applied Economics, Taylor & Francis Journals, vol. 49(35), pages 3509-3522, July.
    7. Hamann, Silke & Niebuhr, Annekatrin & Peters, Jan Cornelius, 2016. "Benefits of dense labour markets: Evidence from transitions to employment in Germany," Economics Working Papers 2016-07, Christian-Albrechts-University of Kiel, Department of Economics.
    8. Li Ma, 2014. "Economic crisis and women’s labor force return after childbirth: Evidence from South Korea," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(18), pages 511-552.
    9. Beatrice Scheubel, 2014. "Does It Pay to Be a Woman?: Labour Demand Effects of Maternity-Related Job Protection and Replacement Incomes," SOEPpapers on Multidisciplinary Panel Data Research 685, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Katharine G. Abraham & John Haltiwanger & Kristin Sandusky & James R. Spletzer, 2019. "The Consequences of Long-Term Unemployment: Evidence from Linked Survey and Administrative Data," ILR Review, Cornell University, ILR School, vol. 72(2), pages 266-299, March.
    11. Nele E. Franz, 2014. "Maternity Leave and Its Consequences for Subsequent Careers in Germany," SOEPpapers on Multidisciplinary Panel Data Research 722, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. Seckler, Matthias, 2019. "Increasing inequality in lifetime earnings: A tale of educational upgrading and changing employment patterns," University of Tübingen Working Papers in Business and Economics 119, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    13. Heather L.R. Tierney & Zafar Nazarov & Nodir Adilov, 2019. "Do re-employment wages fall due to the depreciation of human capital or employer perceptions?," Economics Bulletin, AccessEcon, vol. 39(4), pages 2857-2864.
    14. Astrid Kunze, 2017. "Types of absence from work and wages of young workers with apprenticeship training," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 51(1), pages 1-14, December.
    15. Steven J. Davis & John Haltiwanger, 2014. "Labor Market Fluidity and Economic Performance," NBER Working Papers 20479, National Bureau of Economic Research, Inc.
    16. Abraham, Katharine G. & Haltiwanger, John C. & Sandusky, L. Kristin & Spletzer, James R., 2016. "The Consequences of Long Term Unemployment: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 10223, Institute of Labor Economics (IZA).
    17. World Bank, . "Republic of Armenia Leveling the STEM Playing Field for Women," World Bank Other Operational Studies, The World Bank, number 26766.
    18. Andrea Cutillo & Marco Centra, 2017. "Gender-Based Occupational Choices and Family Responsibilities: The Gender Wage Gap in Italy," Feminist Economics, Taylor & Francis Journals, vol. 23(4), pages 1-31, October.
    19. Vera Celia P., 2019. "A Structural Approach to Assessing Retention Policies in Public Schools," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(3), pages 1-26, July.
    20. 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 127-151, April.
    21. Steven Salaga & Brian M. Mills & Scott Tainsky, 2020. "Employer-Assigned Workload and Human Capital Deterioration: Evidence From the National Football League," Journal of Sports Economics, , vol. 21(6), pages 628-659, August.
    22. Felix Busch, 2020. "Gender Segregation, Occupational Sorting, and Growth of Wage Disparities Between Women," Demography, Springer;Population Association of America (PAA), vol. 57(3), pages 1063-1088, June.
    23. Schönberg, Uta, 2008. "Does the IABS reliably identify maternity leave taking?," FDZ Methodenreport 200803_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    24. Andrew Foote & Michel Grosz, 2020. "The Effect of Local Labor Market Downturns on Postsecondary Enrollment and Program Choice," Education Finance and Policy, MIT Press, vol. 15(4), pages 593-622, Fall.
    25. Bechara, Peggy, 2012. "Gender Segregation and Gender Wage Differences during the Early Labour Market Career," Ruhr Economic Papers 352, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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