Inequality Caused by Career Interruptions:

Examining Persistent Effects upon Getting Regular Employment

Abstract

This article explores the process by which occupational inequality is created by career interruptions. Career interruptions cause fluctuations in an individual's career and occupational status. Many studies measure the effects of past events such as career interruptions, using cross-sectional models. These models cannot distinguish the causal effect of career interruptions and unit heterogeneity. I apply random-effects and fixed-effects logit models to longitudinal data from a retrospective life-history survey in Japan (SSM survey, 2005) to show the persistent negative effects of career interruptions on the chance to get regular employment. In addition, I examine the variance of effects by the age of individuals, length of interruptions, and reason for leaving their previous jobs.

The empirical results in this article are as follows. First, career interruptions have persistent negative effects on the probability of getting regular employment. The effects last for a period of approximately 20 years for men, and over 20 years for women. Second, for men, severe persistent effects are found only when they exit employment after the age of 30. Third, for women, negative effects are found especially when they are younger, leave employment longer, and exit for involuntary reasons, although the scars of career interruptions persist longer for women, regardless of their characteristics. Fourth, career interruptions increase inequalities observed before interruptions, because people with low-status jobs are more likely to interrupt their careers.