Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/78648
Authors: 
Edin, Per-Anders
Gustavsson, Magnus
Year of Publication: 
2005
Series/Report no.: 
Working Paper, IFAU - Institute for Labour Market Policy Evaluation 2005:21
Abstract: 
This paper investigates the role of skill depreciation in the relationship between work interruptions and subsequent wages. Using unique longitudinal microdata containing information on the ability to understand and practically employ printed information, we are able to analyze changes in skills for individuals as a function of time out of work. In general, we find statistically strong evidence of a negative relationship between work interruptions and skills. Our analysis suggests that depreciation of general information-processing skills is economically significant, with a full year of non-employment being equivalent to moving 5 percentiles down the skill distribution.
Subjects: 
Work interruptions
skill depreciation
wage differentials
JEL: 
J24
J31
Document Type: 
Working Paper

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