The Effects of Gender Differences in Career Interruptions on the Gender Wage Gap in Spain

The aim of this paper is to measure the influence of past employment interruptions on current wages and to analyze how these interruptions contribute to the gender wage gap. The discontinuity in labor trajectories of Spanish employees from 2005 to 2010 is examined by measuring the duration of unemployment periods from employees’ first Social Security affiliation to the last job at which they were employed. Through the use of the database “Muestra Continua de Vidas Laborales” (MCVL), the estimated gender wage gap is found to be 13.1 percent. Introducing an index of interruptions as an explanatory variable, the results show that interruptions have a negative impact on both men's and women's wages. These interruptions explain 7.4 percent of the daily gender wage gap in Spain, primarily because women experience more interruptions in employment than men.