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.
Working Paper No. 14
Rates of Depreciation of Human Capital Due to Nonuse
Working Paper