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Rates of Depreciation of Human Capital Due to Nonuse

Author

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  • Gustafsson, Siv

    (Research Institute of Industrial Economics (IFN))

Abstract

How important for success on the job is uninterrupted labor force participation? Data on labor force status for a 15 year period for individual salaried employees in Swedish Industry makes possible the estimation of the effect of years of experience and years of non-experience on earnings. One result is that both women and men experience salary decreases by labor force interruptions. However, net investment during non-experience years found to be positive, women as well as men return to the labor market with a larger amount of human capital after the interruption than before the interruption.

Suggested Citation

  • Gustafsson, Siv, 1977. "Rates of Depreciation of Human Capital Due to Nonuse," Working Paper Series 14, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0014
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    References listed on IDEAS

    as
    1. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 76-108, Part II, .
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    More about this item

    Keywords

    Human capital; Wage;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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