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The Timing of Careers and Human Capital Depreciation

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  • Kunze, Astrid

    (Norwegian School of Economics)

Abstract

This paper explores the short and long run effects of career interruptions on wages for young skilled workers in West Germany. The analysis distinguishes four types of career interruptions: unemployment, parental leave for female workers, national service for male workers and other non-work spells. We adopt the human capital model by Mincer and Polachek (1974) with homogenous human capital and test whether net depreciation is equal across types of employment interruptions, and equal in the short and in the long run. The main findings are that timing effects seem important and net depreciation differs across types of interruptions.

Suggested Citation

  • Kunze, Astrid, 2002. "The Timing of Careers and Human Capital Depreciation," IZA Discussion Papers 509, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp509
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    File URL: https://docs.iza.org/dp509.pdf
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    References listed on IDEAS

    as
    1. 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.
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    More about this item

    Keywords

    human capital depreciation; wage determination; unemployment;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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