Wage differentials after a career break: A latent growth model using belgian register data

Abstract

This article analyses income differentials after re-entry into the labour market between people who have had a career break and people who have not by applying latent growth modelling to a sample of longitudinal register data. The results suggest that when comparing the incomes of those who return from a break with those who did not have a break there are significant initial income differences to the disadvantage of the former. Moreover, the income differentials between men were greater than those between women. In addition, significant additional income growth was found after the break for women but not for men. The evidence suggests that such leave is more socially acceptable for women but leads to significant negative income differentials among men.