The effect of interruptions and part-time work on women's wage rate: A test of the variable-intensity model

Abstract

In this article we investigated the effects of interruptions of labour market participation and part-time work on women's gross wage rates, using the variable-intensity model. Women who interrupt their labour market careers suffer not only from depreciation, which effects all workers. Every year they do not participate they also miss experience. Part-time work mitigates the depreciation of human capital compared to a situation of non-participation. The expectation that part-time work — as opposed to full-time work — leads in the long run to a lower wage rate is confirmed.