Career Interruptions and Current Earnings: The Role of Interruption Type, Compensation Component, and Gender

Benedikt Gerst () and Christian Grund
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Benedikt Gerst: RWTH Aachen University

No 10713, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study examines how career interruptions and subsequent wages of employees are related. Using individual panel data of middle managers from the German chemical sector, we are able to differentiate between different reasons for interruptions as well as between various compensation components. We show that career interruptions are more related to lower subsequent bonus payments than they are to fixed salaries and that interruptions caused by unemployment are associated with higher interruption pay gaps than those resulting from other reasons. In addition, the pay gap after career interruptions is more pronounced for male employees than it is for females.

Keywords: career interruptions; gender pay gap; stigma effects; bonus payments; fixed salaries; total compensation (search for similar items in EconPapers)
JEL-codes: J31 J33 J71 M52 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2017-04
New Economics Papers: this item is included in nep-eur, nep-gen, nep-hrm and nep-lma
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Published - published in: International Journal of Manpower 2019, 40 , 850–878

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