Discussion Paper Series, Wilfried-Guth-Stiftungsprofessur für Ordnungs- und Wettbewerbspolitik 2016-03
This paper provides a micro-simulation study on the long-run effects of career interruptions in Germany, extending earlier work which generally only focuses on the first few years after an interruption. Using data of the German Socio-Economic Panel, it finds that career interruptions will, for the average individual, have lifelong effects on incomes and labor-force participation. It quantifies these effects for the average affected individual as well as on the entire society and therefore provides additional information on the total cost of career interruptions.
micro-simulation career interruptions lifetime income