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Career Interruptions and Current Earnings: The Role of Interruption Type, Compensation Component, and Gender

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Listed:
  • Gerst, Benedikt

    (RWTH Aachen University)

  • Grund, Christian

    (RWTH Aachen University)

Abstract

This study examines how career interruptions and subsequent wages of employees are related. Using individual panel data of middle managers from the German chemical sector, we are able to differentiate between different reasons for interruptions as well as between various compensation components. We show that career interruptions are more related to lower subsequent bonus payments than they are to fixed salaries and that interruptions caused by unemployment are associated with higher interruption pay gaps than those resulting from other reasons. In addition, the pay gap after career interruptions is more pronounced for male employees than it is for females.

Suggested Citation

  • Gerst, Benedikt & Grund, Christian, 2017. "Career Interruptions and Current Earnings: The Role of Interruption Type, Compensation Component, and Gender," IZA Discussion Papers 10713, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10713
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    More about this item

    Keywords

    career interruptions; gender pay gap; stigma effects; bonus payments; fixed salaries; total compensation;
    All these keywords.

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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