This paper examines the wage effects of different types of career interruptions. We consider the timing and duration of … non-employment spells by exploiting an administrative data set of German social security accounts (IAB employment sample … between employment breaks due to registered unemployment, formal parental leave, training or other reasons – a distinction …

Discontinuities in the employment profile are supposed to cause wage cuts since they imply an interruption in the …-time employment spells. Estimation results for German women suggest that deviations from full-time employment are associated with … significant wage cuts owing to the depreciation of human capital. Postponing the discontinuity leads to a further fall of the wage …