Human capital depreciation during hometime

D. Görlich, A. de Grip

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

We estimate human capital depreciation rates during career interruptions due to family reasons (parental leave and household time) in male- and female-dominated occupations. If human capital depreciation due to family related career breaks is lower in female than in male occupations, this can explain occupational sex segregation because women will take the costs of future breaks into account when optimizing their lifetime earnings. We find that short-run depreciation rates in high-skilled occupations are significantly lower in female than in male occupations. In low-skilled occupations, there is no evidence of this difference. Our findings support the self-selection hypothesis with respect to occupational sex segregation in the more skilled jobs, i.e. high-skilled women might deliberately choose female occupations because of the lower short-term wage penalties for family-related career interruptions.
Original languageEnglish
Pages (from-to)i98-i121
Number of pages23
JournalOxford Economic Papers-New Series
Volume61
Issue number1
DOIs
Publication statusPublished - 1 Jan 2009

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