Career Interrupted for What Reason? Job Interruptions and Their Wage Effects

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This paper examines whether controlling for the type of career interruption has different effects on men's and women's wages. One argument for the persistence of the gender wage gap is that previously researchers have used poor measures of experience to estimate men's and women's wages. This paper extends the career interruption literature by estimating men's and women's wages including controls for both the type and timing of interruptions. Findings show similar wage effects for men's and women's wages while controlling for the type of interruption. These results are consistent with the basic human capital model, but are inconsistent with previous empirical research.