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Unemployment and Subsequent Wages: Does Gender Matter?

  • Wiklund, Fredrik

    (Ministry of Finance)

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    Are there any differences in how men and women fare from unemployment in terms of the wages they receive on a new job? This paper addresses that question using the 1991 wave of the Level of Living Survey. The results suggest that men who experience unemployment will suffer a reduction of subsequent wages while no such effect could be found for women. These findings support the interpretation that women invest more in general rather than specific human capital which make them less exposed to career interruptions, at least those of a short duration. Due to the favourable labour market at the time, average unemployment duration was rather short, which may have prevented general capital from depreciating. However, the presence of large negative occurrence effects for men suggests that unemployment, even of a short duration, is associated with considerable loss of human capital.

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    Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 1999:5.

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    Length: 35 pages
    Date of creation: 22 Mar 1999
    Date of revision:
    Handle: RePEc:hhs:uunewp:1999_005
    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
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    1. James J. Heckman, 1981. "Heterogeneity and State Dependence," NBER Chapters, in: Studies in Labor Markets, pages 91-140 National Bureau of Economic Research, Inc.
    2. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110 National Bureau of Economic Research, Inc.
    3. Daniel S. Hamermesh, 1987. "What Do We Know About Worker Displacement in the U.S.?," NBER Working Papers 2402, National Bureau of Economic Research, Inc.
    4. Bjorklund, A. & Holmlund, B., 1988. "Job Mobility And Wage Subsequent Wages In Sweden," Papers 1988s, Uppsala - Working Paper Series.
    5. Maxwell, Nan L & D'Amico, Ronald J, 1986. "Employment and Wage Effects of Involuntary Job Separation: Male-Female Differences," American Economic Review, American Economic Association, vol. 76(2), pages 373-77, May.
    6. Polachek, Solomon William, 1981. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 60-69, February.
    7. Madden, Janice Fanning, 1987. "Gender Differences in the Cost of Displacement: An Empirical Test of Discrimination in the Labor Market," American Economic Review, American Economic Association, vol. 77(2), pages 246-51, May.
    8. Bruce C. Fallick, 1996. "A review of the recent empirical literature on displaced workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(1), pages 5-16, October.
    9. Polachek,Solomon W. & Siebert,W. Stanley, 1993. "The Economics of Earnings," Cambridge Books, Cambridge University Press, number 9780521367288, October.
    10. Michael Podgursky & Paul Swaim, 1987. "Job displacement and earnings loss: Evidence from the Displaced Worker Survey," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 41(1), pages 17-29, October.
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