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Interrupted Work Careers

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  • Jacob Mincer
  • Haim Ofek

Abstract

The quantitative effects and even the existence of "human capital depreciation" phenomena has been a subject of controversy in the recent literature. Prior work, however, was largely cross-sectional and theiotgitudina1 dimension, if any, was retrospective. Using longitudinal panel data (on married women in NLS) we have now established that real wages at reentry are, indeed, lower than. at the point of labor force withdrawal, and the decline in wages is bigger the longer the interruption. Another striking finding is a relatively rapid growth in wages after the return to work. This rapid growth appears to reflect the restoration (or "repair") of previously eroded human capital. The phenomenon of "depreciation" and "restoration" is also visible in data for immigrants to the United States. However, while immigrants eventually catch up with and often surpass natives, returnees from the non-market never fully restore their earnings potential.

Suggested Citation

  • Jacob Mincer & Haim Ofek, 1980. "Interrupted Work Careers," NBER Working Papers 0479, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:0479
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    Cited by:

    1. Jonker, N. & de Grip, A., 1999. "Do employees with flexible contracts receive less training?," ROA Research Memorandum 1E, Maastricht University, Research Centre for Education and the Labour Market (ROA).

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