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Interrupted Work Careers and the Starting Salaries of Female Workers in Britain

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  • David Campbell

Abstract

Evidence from previous studies suggest that part of the observed wage differential between males and females is due to the spells of non-participation experienced by women. During these career breaks, no new investment in human capital occurs and the existing stock of skills depreciates, placing women at a disadvantage when the re-enter the labour market. By considering a simple life cycle human capital model, it is possible to show that women anticipating interrupted careers will invest in less full-time education and enter the labour market with a lower starting salary than males. This effect is greatest for women anticipating long breaks, or breaks occurring at an early age. Using data from the National Child Development Study, it is found that women planning spells of non-participation enter the labour market earlier than males and with approximately 10% lower starting salaries.

Suggested Citation

  • David Campbell, 2002. "Interrupted Work Careers and the Starting Salaries of Female Workers in Britain," Studies in Economics 0204, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:0204
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    References listed on IDEAS

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    More about this item

    Keywords

    schooling; starting salary;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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