Search

Cross-sectional and panel estimations of Swedish data reveal that different types of career interruptions have different effects on wages, varying by gender. Therefore, human capital depreciation does not entirely account for the negative effect of career interruptions on subsequent wages. (SK)

Data from the 'Swedish Labor Force Surveys' indicates that the Swedish government's social policy, which promoted excellent child care facilities, attracted more Swedish women into opting for a full time career. The decrease in the preference for part-time careers can also be attributed to tax reforms which specify an increase in the marginal tax rates for part-time workers.

This paper analyses whether the commonly found negative relationship between parental separation in childhood and educational outcomes is causal or due mainly to selection. We use data on about 100,000 Swedish full biological siblings, born in 1948u63, and perform cross-section and sibling-difference estimations. Outcomes are measured as educational attainment in 1996. Our cross-section analysis shows the expected negative and significant relationship, while the relationship is not significant, though precisely estimated, in the sibling-difference analysis. This finding was robust to the sensitivity tests performed and is consistent with selection, rather than causation, being the explanation for the negative relationship.