The focus of this study is to estimate the wage loss of career interruption. The main target of this research is 3,273 employees collected from the data of the 5th wave Human Capital Corporate Panel (HCCP) (2013) organized by KRIVET. To estimate the wage loss effect of career interruption, ordinary least squares (OLS) regression and propensity score matching (PSM) were employed.
The results of the study show that employees with career interruption have 12.2% lower wage than employees without career interruption. Also, after controlling observable characteristics between treatment and control groups using PSM, it was found that employees with career interruption due to childbirth and childcare have 28.7% lower wage than the employees without those kinds of career interruption. On the other hand, employees with career interruption for developing self-competency showed higher wages than those of employees without those reasons for career interruption. These findings provide useful policy implications for reducing wage loss of employees who experienced career interruption.