Time out of work and skill depreciation

Per-Anders Edin and Magnus Gustavsson

No 2005:21, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper investigates the role of skill depreciation in the relationship between work interruptions and subsequent wages. Using unique longitudinal microdata containing information on the ability to understand and practically employ printed information, we are able to analyze changes in skills for individuals as a function of time out of work. In general, we find statistically strong evidence of a negative relationship between work interruptions and skills. Our analysis suggests that depreciation of general information-processing skills is economically significant, with a full year of non-employment being equivalent to moving 5 percentiles down the skill distribution.

Keywords: Work interruptions; skill depreciation; wage differentials (search for similar items in EconPapers)
JEL-codes: J24 J31 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2005-09-01
New Economics Papers: this item is included in nep-bec and nep-lab
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Citations: View citations in EconPapers (25)

Published in Industrial and Labor Relations Review, 2008, pages 163-180.

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Related works:
Journal Article: Time Out of Work and Skill Depreciation (2008)
Working Paper: Time Out of Work and Skill Depreciation (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifauwp:2005_021

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