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Unemployment and Subsequent Wages: Does Gender Matter?

Author

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  • Wiklund, Fredrik

    (Ministry of Finance)

Abstract

Are there any differences in how men and women fare from unemployment in terms of the wages they receive on a new job? This paper addresses that question using the 1991 wave of the Level of Living Survey. The results suggest that men who experience unemployment will suffer a reduction of subsequent wages while no such effect could be found for women. These findings support the interpretation that women invest more in general rather than specific human capital which make them less exposed to career interruptions, at least those of a short duration. Due to the favourable labour market at the time, average unemployment duration was rather short, which may have prevented general capital from depreciating. However, the presence of large negative occurrence effects for men suggests that unemployment, even of a short duration, is associated with considerable loss of human capital.

Suggested Citation

  • Wiklund, Fredrik, 1999. "Unemployment and Subsequent Wages: Does Gender Matter?," Working Paper Series 1999:5, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:1999_005
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    File URL: http://www.nek.uu.se/pdf/1999wp5.pdf
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    References listed on IDEAS

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    1. Madden, Janice Fanning, 1987. "Gender Differences in the Cost of Displacement: An Empirical Test of Discrimination in the Labor Market," American Economic Review, American Economic Association, vol. 77(2), pages 246-251, May.
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    5. Daniel S. Hamermesh, 1987. "What Do We Know About Worker Displacement in the U.S.?," NBER Working Papers 2402, National Bureau of Economic Research, Inc.
    6. Polachek,Solomon W. & Siebert,W. Stanley, 1993. "The Economics of Earnings," Cambridge Books, Cambridge University Press, number 9780521367288, September.
    7. Rosen, Sherwin, 2007. "Studies in Labor Markets," National Bureau of Economic Research Books, University of Chicago Press, number 9780226726304, September.
    8. 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.
    9. Maxwell, Nan L & D'Amico, Ronald J, 1986. "Employment and Wage Effects of Involuntary Job Separation: Male-Female Differences," American Economic Review, American Economic Association, vol. 76(2), pages 373-377, May.
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    Cited by:

    1. Thomas A. DiPrete, 2001. "Life Course Risks, Mobility Regimes, and Mobility Consequences: A Comparison of Sweden, Germany and the U.S," Discussion Papers of DIW Berlin 255, DIW Berlin, German Institute for Economic Research.

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    More about this item

    Keywords

    Unemployment; Gender; Human Capital; Wages;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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