Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82741
Authors: 
Edin, Per-Anders
Gustavsson, Magnus
Year of Publication: 
2004
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2004:14
Abstract: 
This paper investigates the role of skill depreciation in the relationship between work interruptions and subsequent wages. Using a unique longitudinal dataset, the Swedish part of the International Adult Literacy Survey, we are able to analyze changes in literacy skills for individuals as a function of time out of work. In general, we find statistically strong evidence on a negative relationship between work interruptions and skills. Our analysis suggests that depreciation of general (literacy) skills is economically significant. Our estimates imply that a full year of non-employment is associated with skill losses that are equivalent to moving 5 percentiles down the skill distribution.
Subjects: 
Work interruptions
Skill depreciation
Unemployment
Wage differentials
JEL: 
J13
J24
J31
J69
Document Type: 
Working Paper

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