Rates of Depreciation of Human Capital Due to Nonuse

Siv Gustafsson

No 14, Working Paper Series from Research Institute of Industrial Economics

Abstract: How important for success on the job is uninterrupted labor force participation? Data on labor force status for a 15 year period for individual salaried employees in Swedish Industry makes possible the estimation of the effect of years of experience and years of non-experience on earnings. One result is that both women and men experience salary decreases by labor force interruptions. However, net investment during non-experience years found to be positive, women as well as men return to the labor market with a larger amount of human capital after the interruption than before the interruption.

Keywords: Human capital; Wage (search for similar items in EconPapers)
JEL-codes: J24 J31 (search for similar items in EconPapers)
Pages: 22 pages
Date: 1977-08
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