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Unemployment and Subsequent Wages: Does Gender Matter?

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  • Wiklund, Fredrik

    (Ministry of Finance)

Abstract

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.

Suggested Citation

  • Wiklund, Fredrik, 1999. "Unemployment and Subsequent Wages: Does Gender Matter?," Working Paper Series 1999:5, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:1999_005
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    References listed on IDEAS

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    1. 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 246-251, May.
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    6. Bruce C. Fallick, 1996. "A Review of the Recent Empirical Literature on Displaced Workers," ILR Review, Cornell University, ILR School, vol. 50(1), pages 5-16, October.
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    Cited by:

    1. Thomas A. DiPrete, 2001. "Life Course Risks, Mobility Regimes, and Mobility Consequences: A Comparison of Sweden, Germany and the U.S," Discussion Papers of DIW Berlin 255, DIW Berlin, German Institute for Economic Research.

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    More about this item

    Keywords

    Unemployment; Gender; Human Capital; Wages;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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