Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/259765 
Year of Publication: 
2021
Citation: 
[Journal:] Swiss Journal of Economics and Statistics [ISSN:] 2235-6282 [Volume:] 157 [Issue:] 1 [Article No.:] 1 [Publisher:] Springer [Place:] Heidelberg [Year:] 2021 [Pages:] 1-14
Publisher: 
Springer, Heidelberg
Abstract: 
This paper measures the effect of a long-term career interruption on wages after re-employment. Using data from the Swiss Household Panel (SHP) and a fixed effects estimation method allows us to account for time-constant unobserved heterogeneity. We find a significant wage penalty of about 7% in the first year after re-employment if a worker takes up a job with the same characteristics as the job previously held. This wage penalty finally vanishes after 5 to 6 years. Conducting subsample analyses for men and women, we uncover underlying heterogeneity of the effect. Compared to women, men tend to suffer more from a long-term career interruption, both in terms of a higher wage penalty during the first year of re-employment and a larger subsequent recovery time. Our findings support the assumption that human capital depreciation is not the only reason for wage penalties after re-employment.
Subjects: 
Career interruption
Re-employment
Wage
Fixed effects
Switzerland
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size
603.06 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.