Time Out of Work and Skill Depreciation

Arbeitspapier

This paper investigates the role of skill depreciation in the relationship between work interruptions and subsequent wages. Using a unique longitudinal dataset, the Swedish part of the International Adult Literacy Survey, we are able to analyze changes in literacy skills for individuals as a function of time out of work. In general, we find statistically strong evidence on a negative relationship between work interruptions and skills. Our analysis suggests that depreciation of general (literacy) skills is economically significant. Our estimates imply that a full year of non-employment is associated with skill losses that are equivalent to moving 5 percentiles down the skill distribution.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2004:14

Classification and Topics

• Classification: Wirtschaft ; Fertility; Family Planning; Child Care; Children; Youth ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials ; Mobility, Unemployment, and Vacancies: Other
• Subject: Work interruptions ; Skill depreciation ; Unemployment ; Wage differentials ; Arbeitslosigkeit ; Dauer ; Qualifikation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Edin, Per-Anders ; Gustavsson, Magnus
• Event: Veröffentlichung
• (who): Uppsala University, Department of Economics
• (where): Uppsala
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/82741
• Last update: 10.03.2025, 11:42 AM CET